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Costs and profit

Recipe-Based Stock Control for a Café — A Worked Example

8 min read
In short
  • Recipe-based stock control deducts ingredients the moment an order is placed, not at the end of the week. One latte takes 0.2 litres of milk and 0.02 kilograms of beans off the shelf; three lattes take 0.6 litres and 0.06 kilograms.
  • Ingredients are tracked in real units — kilograms, litres, pieces — with eight unit types covering everything from milk in litres to cups in pieces.
  • Five things change a stock number: stock in, stock out, waste, a stocktake adjustment, and the orders themselves. Each one leaves its own row in the log, with a name and a time.
  • Items without a recipe never touch stock, on purpose. Put recipes on the ingredients that actually disappear and leave the rest of the menu alone.
  • The system counts quantities, not money. There is no cost per cup, no margin report and no automatic purchase orders in this layer.
  • A stocktake correction is typed as the number you counted — the system does not make you work out the difference.

Most cafés count stock the honest way: somebody looks at the milk on Sunday night, guesses what is left, and orders anyway. Recipe-based stock control replaces the guess with arithmetic that runs itself. You write down what a latte contains once; from then on, every latte ordered subtracts those quantities from your store, and the only things you type by hand are deliveries, waste and the occasional correction. This walkthrough shows what that looks like in a small café, using the same numbers the Kafe360 panel uses in its own setup guide.

What Recipe-Based Means, in One Sentence

Each menu item carries a recipe — a short list of ingredients and how much of each it uses. When the item is ordered, the system writes a deduction against those ingredients. Nobody in service touches stock screens; the waiter orders a latte, the kitchen sees a latte, and somewhere behind them the milk number drops by 0.2 litres. In Kafe360, waiters never even see the stock section — it is a managers-only part of the panel, because the deduction is supposed to happen without anyone getting a screen wrong in the middle of a rush.

Step One — List the Ingredients That Actually Disappear

Start with a short list, not the whole store room. A realistic first list for a coffee-led café has three kinds of thing on it:

IngredientUnitWhy that unit
MilkLitreDelivered in crates, consumed in fractions of a litre per drink
Coffee beansKilogramBought by the bag, consumed in grams per shot — kilograms keep the numbers readable
SyrupsMillilitre or litrePumps vary; pick the unit your bottle labels use
Takeaway cupsPieceOne per takeaway drink, counted exactly
Cake, wholePortionBought whole, sold as slices — a portion per slice makes the deduction honest

Kafe360's stock control offers eight units — kilogram, gram, litre, millilitre, piece, pack, box and portion — and each ingredient keeps its own unit everywhere it appears. Set the minimum level you never want to drop below at the same time: when an ingredient reaches it, the panel marks it Low and counts it at the top of the stock page. That badge is the reminder; no email or message goes out.

Start with ten ingredients, not a hundred. Milk, beans, syrups, cups, the two cakes you bake — the things that visibly disappear. A small list that is correct beats a complete list that was abandoned in week two.

Step Two — Write the Recipes

A recipe is just quantities. Using the example Kafe360 shows in its own panel:

Menu itemIngredientQuantity per serving
LatteMilk0.2 L
LatteCoffee beans0.02 kg
Takeaway latteMilk0.2 L
Takeaway latteCoffee beans0.02 kg
Takeaway latteTakeaway cup1 piece

Note the last row. A takeaway version of the same drink is a separate menu item, and that is what makes the cup count honest — sit-in lattes do not touch the cup line, takeaway lattes do. Edit recipes whenever the real recipe changes; nothing is retyped elsewhere. And items you deliberately leave without a recipe never touch stock at all, which is the correct fate of the packaged sparkling water you sell by the bottle.

The quantities in this table are the panel's own worked example, not a rule about your coffee. Measure your own — pull a shot onto the scale, pour your milk into a jug. Fifteen minutes with a scale on a quiet afternoon fixes the two numbers your whole coffee count rests on.

What Happens When an Order Comes In

A waiter sends three lattes to the kitchen. The kitchen gets the order; the stock log gets two new rows, both written by the system and marked as such — milk minus 0.6 L, beans minus 0.06 kg. Nobody typed anything. The deduction happens at the moment the order is placed, which matters more than it sounds: if it happened at payment, every unpaid bill at midnight would be milk the system still thinks it has.

The Five Ways a Stock Number Changes

Every movement is one of five types, and each keeps its own row in the log with the person, the time and an optional note:

MovementWho enters itEffect
Stock InYou, at the deliveryAdds on top of what you had
Stock OutYouRemoves without a sale — moved to another site, staff food
WasteYou, when it happensRemoves and records why — spilled, burnt, past its date
Stock AdjustmentYou, after a stocktakeSets the level to what you actually counted
OrderNobody — the systemThe recipe deduction described above

Because waste is logged separately from sales, a spill never hides inside a good trading day. The movements list shows the most recent entries — enough to reconstruct this morning, not a substitute for a monthly review.

A Fortnight in the Life of One Ingredient

Worked example

Milk opens the fortnight at 6 L. A delivery of 20 L arrives on Tuesday and is entered as Stock In. Over fourteen trading days the café sells 68 lattes and 5 takeaway lattes, so the system writes 73 Order deductions of 0.2 L each — 14.6 L in total. A jug is dropped on the Friday: 0.7 L, logged as Waste with a note. By stocktake Sunday the panel expects 6 + 20 − 14.6 − 0.7 = 10.7 L. The fridge is counted and holds 10.2 L. The manager enters a Stock Adjustment of 10.2, the level becomes 10.2, and the 0.5 L gap is now a named, dated number instead of a feeling. Next fortnight the gap is 0.2 L. Nothing was bought, sold or trained differently — it just got counted honestly.

What the Numbers Change About Ordering

The point of the exercise is not the stock page; it is the order you place with the supplier. Once a fortnight of Order rows exists, you know your real usage — 14.6 litres of milk a fortnight in the example above — and the minimum level stops being a guess. Set it at, say, three trading days of usage and the Low badge becomes a reorder signal you can act on. Read the movement log alongside it: if Waste is a meaningful share of the milk line, the answer is a shorter jug or a calmer Friday, not a bigger order.

Where This Stops Being an Inventory System

Recipe-based deduction is one layer, and it is worth knowing where it ends:

  • It counts quantities, not money. No ingredient carries a cost, so there is no cost per cup and no margin report. Costing a menu is still your spreadsheet plus your supplier prices.
  • It never blocks a sale. Zero stock is information, not a lock. The guest still gets their coffee.
  • It does not order for you. There are no supplier records and no purchase orders in this layer — the output is a truthful number and a Low badge, and the phone call is yours.
  • It does not message you. No email or push when something runs low. The panel shows it; you look.
  • It has no barcode scanning and prints no stocktake sheet. The count happens with a clipboard and the panel, and the correction is typed once.

Do not buy stock control for the costing report unless you have seen the costing report. Plenty of small systems — this one included — deduct quantities honestly and stop there. That is genuinely useful, and it is not the same as a margin report.

Starting Small — the First Week

  • Pick ten ingredients maximum and set each one's unit and minimum level.
  • Measure two recipes properly with a scale — the drink you sell most, and its takeaway twin.
  • Enter deliveries as Stock In on the day they arrive, not from memory at the weekend.
  • Log waste when it happens, with a note; a spill entered on Friday is data, one entered on Monday is folklore.
  • Count one ingredient — milk — on the next two Sundays and adjust it. If the gap between expected and counted narrows, the recipes are right.

Recipe-based stock control in Kafe360 is part of the annual plan, works in the eight units listed above, and can be switched off entirely in settings if a venue decides counting is not for them yet.

Write two recipes tonight and watch one ingredient for a fortnight. Stock control is included in the annual plan at $249 a year, with a 30-day free trial and no card to start.

Start your 30-day free trial

Frequently asked questions

When exactly is stock deducted in recipe-based control?
At the moment the order is placed — not when the plate reaches the table and not when the bill is paid. A latte sent to the kitchen at 10.02 has already come off the milk and the coffee beans at 10.02. This is what makes the numbers trustworthy at the end of the week: sales and deductions describe the same events.
What happens to menu items with no recipe?
Nothing at all, and that is deliberate. An item without a recipe never touches stock. You can put recipes on the ten things that actually matter — milk, beans, syrups, cups — and leave the rest of the menu alone. Half a recipe is better than no recipes because somebody got tired of typing.
Does stock control stop a sale when an ingredient hits zero?
No. Stock levels never go below zero, but a sale is never blocked. A till that refuses an order because a number in a database says zero is worse than the wrong number — the guest is standing there and the coffee is makeable. The low level is information for the manager, not a lock on the till.
Can recipe-based stock control tell me what a cup costs?
Not on its own, and honest systems say so. Kafe360's stock control tracks quantities — litres, kilograms, pieces — not money. There is no cost field on an ingredient and no per-cup cost calculation. To cost a cup you combine the recipe quantities with your supplier prices yourself, in a spreadsheet if that is what you have.
Will it send an alert when an ingredient runs low?
In Kafe360, no message is sent. A low ingredient is marked with a Low badge in the panel and counted at the top of the stock page, and that is the whole of the signal. If you want a push notification or an email, ask the provider you are evaluating whether it actually exists before you count on it.
How do I fix the numbers after a physical stocktake?
With a stock adjustment rather than arithmetic. You count what is actually in the store, you type that number, and it becomes the new level. The correction sits in the movements log with your name on it, like every other change. Compare the counted level with the expected one first — the gap is your shrinkage story for the week.
Kafe360 editorial team

We build point-of-sale and QR menu software for cafés and restaurants, and we write the guides we wish our customers had before they opened. Try Kafe360 free for 30 days.

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