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Inventory & food cost

Restaurant Inventory Management: FIFO, FEFO and Expiry Tracking

The paneer at the back of the fridge isn't hiding. It's waiting to expire on the one day you're too busy to notice. Here's how to stop that.

TTarini · Founder, Ecomeal4 min read
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In this article +
  1. FIFO vs FEFO
  2. Step 1: Check at receiving
  3. Step 2: Label everything
  4. Step 3: Store for rotation
  5. Step 4: Keep an expiry log
  6. Step 5: Act before it expires
  7. Why batch-level tracking matters
  8. Food safety note
  9. Where Ecomeal is going
  10. Frequently asked questions

The short answer

FIFO (First In, First Out) means use the oldest stock first. FEFO (First Expired, First Out) means use the stock that expires soonest first. For most produce and raw ingredients, FIFO works. For packaged and dated items (dairy, sauces, frozen goods), FEFO is safer, because a newer delivery can expire before an older one. Make both work with three habits: check at receiving, label everything, and log expiry.

FIFO vs FEFO

FIFO FEFO
Rule Oldest received → used first Soonest expiry → used first
Best for Fresh produce, staples, bulk dry goods Dairy, packaged foods, sauces, frozen items
What you need to know Received date Expiry / use-by date
Risk if ignored Old stock spoils at the back Short-dated stock expires unnoticed

Why FEFO beats FIFO for dated items

Suppose you receive two batches of cream:

Batch Received Use-by
A Monday Saturday
B Wednesday Thursday

FIFO says use batch A first because it arrived first. But batch B expires two days earlier. FEFO says use B first. With dated items, expiry beats arrival.

The cream conspiracy

Batch B arrived later, looked fresher, sat at the front, and was secretly the oldest thing in the fridge. Dairy has trust issues. So should you.

Step 1: Check at receiving

Every expiry problem starts at the back door. When stock arrives:

  • Check dates on packaged items. Refuse short-dated stock you can't use in time.
  • Check temperature for chilled and frozen goods.
  • Check quality: smell, colour, packaging intact.
  • Record the delivery: supplier, item, quantity, batch, use-by date.

Step 2: Label everything

Anything that's opened, prepped or decanted gets a label:

Item | Prepped / opened on | Use by | Initials

Colour-coded day labels help in busy kitchens. Never trust memory for "when did we make this gravy?"

Step 3: Store for rotation

  • New stock goes behind old stock (FIFO).
  • Shortest use-by goes in front (FEFO).
  • Raw below cooked in the fridge.
  • One location per item, so it's easy to see what's there.

Step 4: Keep an expiry log

A daily 5-minute check of the fridge and store, with an expiry log:

Date Item Batch Use by Action
14 Dec Cream B-1203 15 Dec Use in today's specials
14 Dec Paneer P-1211 16 Dec Prioritise on tomorrow's prep
14 Dec Mayo (opened) — 14 Dec Discard, log as waste

Sample entries.

Anything discarded goes into your waste log with the reason "expired," so you can see which items and suppliers cause the most spoilage.

Step 5: Act before it expires

The best response to short-dated stock is a sale: a special, a combo or a staff meal. If paneer expires in two days, paneer dishes should be front and centre today.

Ecomeal's AI Up Sell helps with the sales side: every afternoon it finds dishes that are selling slowly and puts a deal for each on the POS, so slow-moving dishes (and the ingredients behind them) move faster.

Why batch-level tracking matters

Tracking by batch, not just by item, means you know:

  • Which delivery a problem came from (useful for supplier conversations)
  • The exact cost of each batch, since prices change between deliveries
  • What to pull quickly if there's a quality problem
  • How much stock is about to expire, in rupees

That's also how batch costing works: when you use older stock first, you cost it at the older price. It makes food cost more accurate.

Food safety note

Use-by dates and safe storage are food safety requirements, not just cost controls. FSSAI sets food safety and hygiene requirements for food businesses in India; follow its guidance and your local licence conditions. When in doubt, throw it out, and log it.

Where Ecomeal is going

We're building Wastello, Ecomeal's inventory and waste product, with FIFO batch-layer costing and automatic expiry-to-waste logging at its core. It isn't live yet. We'll write about it when it is.

Frequently asked questions

What is the difference between FIFO and FEFO?

FIFO uses the oldest received stock first. FEFO uses the stock with the soonest expiry date first.

Which is better for restaurants, FIFO or FEFO?

Use FIFO for fresh produce and bulk staples, and FEFO for dated items like dairy, sauces and packaged or frozen goods.

How do I track expiry dates in a restaurant?

Record use-by dates at receiving, label all opened and prepped items, check daily, and keep an expiry log.

What should I do with stock close to expiry?

Use it first in prep, feature it in a special or combo, or use it in staff meals. If it has expired, discard and log it.

See it in your Kitchen.

Ecomeal Lite starts at ₹333/month + GST, billed yearly. A short demo on WhatsApp shows you billing, KOTs and AI Up Sell on your own menu.

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