FIFO

FIFO (First In, First Out) is one of the simplest yet most powerful inventory rules in restaurant operations. It can save you thousands of rupees in wasted food, prevent foodborne illness, and bring much-needed order to your storage chaos.

What FIFO Actually Means

In practice, FIFO means you always use older stock before newer deliveries. The goal is to use products in the order they arrive, reducing the chance of spoilage and keeping ingredients as fresh as possible for customers.

It sounds basic, but without proper systems in place, FIFO is often ignored during busy shifts. That’s where the real problems—and costs—begin.

Why FIFO Can Save You Serious Money

Let’s break it down.

When FIFO isn’t followed, ingredients expire on your shelves. That waste directly affects your food cost percentage, often adding an unnecessary 2–5% to your expenses.

For a restaurant spending ₹20,000 per month on raw materials, that’s a potential loss of ₹400 to ₹1,000 every single month. Implementing FIFO puts that money right back into your bottom line.

It’s Not Just About Cost—It’s About Safety Too

Expired ingredients aren’t just wasteful—they’re dangerous. Failing to follow FIFO increases the risk of foodborne illness, which can lead to:

• Failed health inspections

• Fines or temporary closures

• Damaged customer trust and online reputation

Many local health inspectors specifically check for FIFO practices. Keeping your system tight protects your guests—and your business.

How to Implement FIFO in Real Life

1. Label Everything

Every item needs a clearly visible label with the date it was received or prepped. Use waterproof markers or printed labels for clarity.

2. Organize Your Storage

Make older items more accessible. Store newer deliveries behind or beneath older stock so staff automatically grab the older items first.

3. Use Visual Cues

Colored stickers or tape can make FIFO foolproof. For example, red = oldest, green = newest.

4. Clean and Rotate Regularly

Don’t let shelves and fridges pile up. Rotate stock daily, especially for high-turnover items like produce or dairy.

Staff Training Makes All the Difference

Your FIFO system is only as good as the people using it.

Train kitchen and prep staff to:

• Check dates before using ingredients

• Rotate stock during daily prep

• Understand the why behind FIFO (not just the how)

Short daily huddles or monthly refreshers keep everyone on the same page—even during rush hour.

Let Technology Help You Stay on Track

Modern inventory tools can simplify FIFO.

Many restaurant apps allow you to:

• Track item shelf life

• Receive alerts for near-expiry stock

• Photograph incoming inventory with time stamps

This is especially helpful for larger kitchens with high inventory turnover.

Adjust FIFO for Different Ingredient Types

Not all items behave the same. For instance:

• Proteins: Require the strictest FIFO adherence—spoilage risk is high

• Produce: Needs daily visual checks and may benefit from menu flexibility

• Dry goods: Longer shelf lives, but still need rotation for freshness and hygiene

Knowing how to handle each category helps your team make smarter choices.

FIFO might not be flashy, but it’s a game-changer. With a bit of organization, some colored tape, and a trained team, you can cut costs, improve food quality, and run a cleaner, more professional kitchen.