Stockout: Meaning, Cost and How to Prevent It

By mise · Updated September 29, 2026

Quick answer: a stockout is running out of an item when a customer wants it. Prevent it with a par level per item, safety stock on best sellers and frequent counts of A items.

Every stockout is a lost sale, and sometimes a lost customer. In restaurants it means 86ing dishes mid-service.

Common causes

Not knowing what you have.
Ordering by gut feel.
Supplier delays with no safety stock.
Unplanned demand spikes.

What it costs: a bar that runs out of its top draft on a Friday and sells 80 fewer pints at $7 loses $560 in one night.

mise alerts you when an item drops below par and tells you how much to order.

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Keep reading Par level: meaning, formula and calculator Reorder point formula, with and without safety stock Safety Stock Formula: Calculation and Example Inventory Days on Hand: Formula and Benchmarks All guides

Frequently asked questions

What does stockout mean?

Zero stock of an item when there is demand for it.

How is stockout rate measured?

Number of stockout events, or lost sales ÷ total demand.

Stockout vs backorder?

A backorder is a sale you take and fill later; a stockout usually loses the sale.

How much does mise cost?

A 7-day free trial, then US$33 a month per location (£26 in the UK).