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Restaurant inventory turnover: formula and industry average

By mise · Updated September 29, 2026

Quick answer: inventory turnover = COGS ÷ average inventory, where average inventory = (beginning + ending) ÷ 2. Restaurants typically turn food 4–8 times a month (about 4–7 days on hand) and beverage 1–2 times a month. Days on hand = days in period ÷ turnover.

Turnover tells you how fast your stock becomes sales. Too slow ties up cash and creates waste; too fast means you are running out and paying for emergency orders.

The formulas

Turnover = COGS ÷ average inventory
Days on hand = days in the period ÷ turnover
Example (one month, food): COGS $30,000 · beginning inventory $5,800 · ending $6,200 → average $6,000 → turnover = 5 → days on hand = 30 ÷ 5 = 6 days.

Typical ranges

CategoryMonthly turnoverDays on hand
Fresh food6–10×3–5
All food4–8×4–7
Beer2–4×8–15
Wine and liquor1–2×15–30

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Frequently asked questions

What is a good inventory turnover for a restaurant?

About 4–8 times a month for food (roughly a week or less on hand) and 1–2 times a month for wine and liquor.

How do you calculate days of inventory on hand?

Divide the number of days in the period by the turnover. Or: average inventory ÷ COGS × days.