Theoretical vs Physical Restaurant Inventory
Direct answer: Theoretical inventory is calculated from recipes and recorded movements. Physical inventory is what you count or measure. Their difference is variance, which can reveal recipe, portion, waste, timing, or recording problems.
The two numbers answer different questions
Theoretical stock asks what should remain according to the model. Physical stock asks what is actually present at a moment in time.
Neither should be mislabeled. A live theoretical balance is useful between counts; a physical count is authoritative but becomes older as new activity occurs.
Calculate and interpret variance
If theoretical beef is 8,400 g and a count finds 8,000 g, variance is −400 g. That result does not identify the cause by itself.
Review order activity, recipe quantities, waste, restocks, and the timing of the count. Repeated variance in the same direction can suggest systematic over-portioning or an incomplete recipe.
Set a new baseline safely
Record the count as a Physical count, not as unexplained waste or correction. The system should set stock to the observed quantity and retain a clear ledger entry.
A late historical order from before the count must not alter the new baseline. An order created after the count should deduct normally.
Choose a counting cadence
Count according to operational risk. Consider ingredient value, perishability, sales volume, and how quickly a meaningful error could accumulate.
A practical cadence can mix frequent counts for proteins with less frequent counts for stable packaged goods.