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Hospitality glossary · Compliance and safety

What is FIFO (first in, first out)?

First in, first out, or FIFO, is a way of rotating stock so the oldest food and drink is used first. New deliveries go behind or below older stock of the same item.

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In practice

First in, first out (FIFO) in a real operation.

Definitions are easy. What matters is how the thing behaves in a real operation, and where it tends to go wrong.

What it looks like in a UK hospitality business

In practice it means putting new deliveries behind or underneath what is already on the shelf, in the fridge or in the cellar, and labelling food you prepare with the date it was made. It matters most for food with a use-by date, which tells you when food is no longer safe to eat. A best before date is about quality, not safety. Done every day, FIFO cuts waste and keeps out-of-date food away from guests.

The mistake operators make

Putting new stock at the front because it is quicker at the end of a long delivery. The older stock gets pushed to the back, goes past its date and ends up in the bin, or on a plate. Make the right way the easy way: clear date labels, space at the back of the shelf, and a quick check at each delivery.

Questions

First in, first out (FIFO), answered.

Something here that doesn’t match what you’re seeing in your own business? That is usually worth a conversation rather than another article.

What does first in, first out (FIFO) mean in hospitality?

First in, first out, or FIFO, is a way of rotating stock so the oldest food and drink is used first. New deliveries go behind or below older stock of the same item. In practice it means putting new deliveries behind or underneath what is already on the shelf, in the fridge or in the cellar, and labelling food you prepare with the date it was made. It matters most for food with a use-by date, which tells you when food is no longer safe to eat. A best before date is about quality, not safety. Done every day, FIFO cuts waste and keeps out-of-date food away from guests.

What do operators get wrong about first in, first out (FIFO)?

Putting new stock at the front because it is quicker at the end of a long delivery. The older stock gets pushed to the back, goes past its date and ends up in the bin, or on a plate. Make the right way the easy way: clear date labels, space at the back of the shelf, and a quick check at each delivery.

Related terms

Worth reading next.

Par level

A par level is the amount of an item you want to have in stock after each delivery, so you do not run out before the next one arrives.

HACCP

HACCP stands for Hazard Analysis and Critical Control Point. It is a way of keeping food safe by finding the points where things can go wrong and controlling them, and a food business's food safety management system must meet its principles.

Stock variance

Stock variance is the gap between the gross profit your sales say you should have made and the gross profit a stocktake, a count of the stock you actually have, shows you made.

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