What is a par level, and how do you set one?
A par level is a target for how much of an item you want on hand. Set it well and you stop running out of things mid-service and stop over-buying things that go bad. This guide explains what the term means, shows two common ways to calculate it, and covers how to tell when a number is wrong.
What a par level is
Sources describe it in slightly different ways, and the difference matters. MarketMan, a restaurant inventory vendor, defines it as the minimum and most favorable amount of an item that should be on hand at all times [1]. Altametrics, another vendor, defines it as the ideal quantity to have on hand to operate smoothly between deliveries [2]. The first reads like a floor and the second like a target.
In practice, it helps to keep two numbers apart. The par level is how much you want on the shelf right after a delivery. The reorder point is the level at which you place the next order. Altametrics treats these as separate ideas, and the reorder point sits above zero so that stock does not run out while you wait for the truck [2].
Method 1: weekly use, spread across deliveries
This is the simplest formula. MarketMan gives it as:
Par level = (weekly use + safety stock) ÷ deliveries per week [1]
Their example is red wine. The kitchen uses 14 cases a week, adds 3 cases of safety stock (about a 20% buffer), and gets two deliveries a week. That gives (14 + 3) ÷ 2 = 8.5 cases [1]. MarketMan says safety stock typically runs 20% to 30% of weekly use, to cover surprises such as a large last-minute party [1].
Here is the same method with made-up kitchen numbers. Say you use 60 lb of chicken breast a week, you get two deliveries a week, and you want a 20% buffer.
- Weekly use plus buffer: 60 × 1.2 = 72 lb
- Divide by 2 deliveries: par of 36 lb
Method 2: daily use over the lead time
The second method starts from daily use and the supplier's lead time. Altametrics lays it out in three steps [2]:
- Average daily usage = total usage ÷ number of days
- Lead-time inventory = average daily usage × lead time in days
- Par level = lead-time inventory + safety stock
Their example uses 7 lb a day, a 2-day lead time and 4 lb of safety stock: 7 × 2 = 14 lb, plus 4 lb is 18 lb [2].
Notice that this method answers a slightly different question. It tells you how much you need to cover the wait for the next delivery. Used that way, it is closer to a reorder point than to a par level in the first sense. Neither source is wrong; they are answering different questions. Pick one meaning and use it consistently, so your whole team reads the number the same way.
Which method should you use?
If you order on fixed days from a few suppliers, start with Method 1. It is quick and uses numbers you already have: what you used last week and how often the truck comes. If you can order any day and delivery takes a day or two, Method 2 gives you a trigger for when to place an order. Many kitchens end up using both: a par for what to build up to, and a reorder point for when to call.
Two cautions apply to both. They rest on past usage, so a slow month or a menu change will skew the result. And a buffer is a guess about the unexpected. Treat 20% to 30% as a starting range, not a rule [1].
Perishables need extra care
A par level assumes you can use what you buy. For items that spoil, check the numbers against shelf life. If your delivery cycle is longer than the item keeps, the math above can tell you to hold more than you can safely use. Altametrics recommends tighter control of short-shelf-life items such as dairy and produce [2]. For those items, order more often in smaller amounts, or lower the buffer.
How to tell when a par level is wrong
Par levels are not set-and-forget. Altametrics suggests watching for two signals [2]:
- Repeated waste usually means the par is too high.
- Repeated stockouts usually means it is too low.
Seasonal shifts in customer traffic are another reason to revisit your numbers [2]. A simple habit is to look at your waste log and your 86'd items once a month and adjust the three or four numbers that stand out.
A simple routine to start this week
- Pick your ten most expensive or most-often-ordered items.
- Write down last week's use for each, from invoices or counts.
- Calculate a par for each with Method 1 and a 20% buffer.
- Run the week on those numbers and note every stockout and every item thrown out.
- Adjust the biggest misses and repeat.
Sources
- MarketMan, "How to Calculate Par Level in a Restaurant": marketman.com
- Altametrics, "Guide to Restaurant Par Levels and Reordering": altametrics.com