FIFO stands for First In, First Out. It’s an inventory management system used in the hospitality industry. It ensures the oldest stock is used or sold first, reducing waste and improving quality. In practice, FIFO means you organise your storage areas so the first items in are the first to be used.
FIFO is important in hospitality because it’s about food safety, reducing spoilage and consistency for your guests. By using older ingredients first, you reduce the risk of food going off before you can use it. This is especially useful for perishable items like fresh produce, dairy and meat. FIFO also helps with cost control by reducing waste and getting the most out of your inventory.
Let’s say you’re a chef in a busy kitchen. You’ve just received a delivery of fresh salmon fillets. Using the FIFO method, you’d put these new fillets behind the older stock in the fridge. When you need salmon for a dish, you’d grab the fillets at the front - the ones that have been there the longest. This way you use all the salmon before it goes off and maintain the high quality your guests expect. The same principle applies whether you’re managing wine stock in a bar, pastries in a café or toiletries in a hotel.'