Par is the minimum amount of stock you should always have on hand. This predetermined amount ensures you have enough to meet demand without overstocking. Par levels vary by item, usage and delivery schedule.
In hospitality, par is key to operational efficiency and cost control. It prevents stockouts, which can mean disappointed customers and lost sales. It stops you from tying up too much capital in excess stock. By setting your par levels right you can maximise your storage space, reduce waste and maintain quality of offer.
Let’s say you run a busy restaurant. You have a par level of 100 wine glasses. During a busy weekend, you notice you’re down to 90 glasses. This triggers a reorder to bring stock back up to the par of 100. By maintaining this par level, you always have enough glasses for service even at peak times without overstocking. It’s a smooth operation and happy customers.'