Depletion Report

What Is a Depletion Report?

In restaurant and bar management, a depletion report is your behind-the-scenes truth teller. It shows how much of each product (beer, spirits, wine, or even food ingredients) has been depleted, that is, used or sold, during a specific time frame. Think of it as an X-ray of your stock movement, helping you see exactly where your inventory is going.

For restaurants that serve alcohol, depletion reports are often synced with POS systems and supplier records to maintain transparency and accuracy. They’re also a key part of liquor cost management, preventing losses due to spillage, theft, or poor portion control.

Why Depletion Reports Matter

Inventory is one of the biggest cost centers for a restaurant. Without visibility into how products move, it’s easy for profits to leak unnoticed. Depletion reports give operators the ability to:

• Track stock usage accurately – Know exactly how much of each product is used daily or weekly.

• Detect inconsistencies early – Spot mismatches between sales and stock levels.

• Manage supplier relationships – Compare what’s purchased vs. what’s consumed.

• Reduce waste and overordering – Order based on real consumption, not guesswork.

• Prevent theft and misuse – Highlight irregular patterns that indicate shrinkage.

For example, if your report shows that 10 bottles of vodka were used but sales reflect only 8 bottles’ worth of drinks, something’s off—and that’s your cue to investigate.

How to Create and Use a Depletion Report

Most modern POS or inventory systems automatically generate depletion reports. However, smaller restaurants can still create them manually. Here’s how:

1. Start with your beginning inventory – What you had at the start of the period.

2. Add new purchases – All stock received during that time.

3. Subtract your ending inventory – What remains at the end.

4. Analyze the difference – This number represents your depletion or usage.

Cross-check this data with sales reports to confirm accuracy and identify trends.

Best Practices

• Conduct weekly or bi-weekly depletion checks.

• Pair reports with staff training on portion control.

• Reconcile inventory physically at least once a month.

• Use the insights to renegotiate supplier deals or streamline your menu.