What are Non-Revenue Items considered as?
Non-revenue items refer to the items, supplies, or transactions of products or goods that do not result in sales revenue in restaurants. They are either consumed, utilized, or given away during operations but not directly sold to customers to create revenue.
Non-revenue items commonly found include-
- Staff food/meals
- Free food and beverage
- Giveaways (for promotions)
- Condiments and utensils
- Cleaning materials
- Packing supplies
- Non-revenue stock for internal use
Restaurants track non-revenue items because it is essential for keeping their inventory levels accurate, helping them control their expenses, and generating operational reports.
How Do Restaurant Non-Revenue Items Work?
Non-revenue items are generally logged into a POS or inventory management system within a restaurant.
The basic workflow for this is-
- A non-revenue item is provided, used, or given out.
- The employee records it on the POS system.
- The system reduces the available stock.
- There is no income generated for this transaction.
- Reports and inventory systems track the use, and management uses the information.
- Data can be used to control cost and analyze operations.
For Example, if a restaurant offers a complimentary dessert to a guest or a staff meal while working a shift, then the product could be tracked in inventory without being registered as a sale.