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Best Restaurant Inventory Management Software For 2023

Is your current food inventory system not making the grade? Try one of these top restaurant inventory management apps to save time and money.

    Shannon Vissers

  • Last updated onUpdated

    • Matt Sherman

  • REVIEWED BY

    Matt Sherman

    Lead Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
pos with raw ingredient tracking

Restaurant inventory management is a hallmark of all successful dining establishments, including restaurants, bars, cafes, bakeries, pizzerias, QSRs, and other businesses that sell food or drink items. Fortunately, it’s not too difficult to find a top POS system with built-in restaurant inventory management or a POS that offers integrations for restaurants needing inventory systems through a third-party add-on.

Read on to learn how to revamp your restaurant inventory management with these top restaurant inventory software systems.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
Toast POS

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  • Best for casual dining
  • $0+/month
  • 2.49% +$0.15 processing
  • Best for casual dining
  • $0+/month
  • 2.49% +$0.15 processing

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TouchBistro

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  • Best for payment processing options
  • $69+/month
  • Cost-plus processing
  • Best for payment processing options
  • $69+/month
  • Cost-plus processing

Visit Site

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Lightspeed Restaurant POS

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  • Best for inventory software integrations
  • $69+/month
  • 2.6% + $0.10 processing
  • Best for inventory software integrations
  • $69+/month
  • 2.6% + $0.10 processing

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Square For Restaurants POS

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  • Best for free restaurant inventory management
  • $0+/month
  • 2.6% + $0.10 processing
  • Best for free restaurant inventory management
  • $0+/month
  • 2.6% + $0.10 processing

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Shopventory

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  • Best for advanced restaurant inventory management
  • $79+/month
  • Integrates with Square, Clover, Shopify POS for payments
  • Best for advanced restaurant inventory management
  • $79+/month
  • Integrates with Square, Clover, Shopify POS for payments

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Read more below to learn why we chose these options.

Table of Contents

What Is Restaurant Inventory Management Software?

Restaurant inventory management software helps restaurants automate inventory tasks, such as performing inventory counts, updating food inventories as menu items are sold, and reordering ingredients when supplies are low. Your restaurant POS system may include inventory features, or you might use a dedicated inventory app that integrates with your POS.

The 5 Best Restaurant Inventory Management Systems

Restaurant inventory management software should include features like ingredient tracking, vendor management, low-stock notifications, recipe costing, and more. A good restaurant inventory management system saves time and money by preventing food waste. Learn about the best restaurant inventory management software, including Toast, TouchBistro, and others.

1. Toast: Best For Casual Dining

Toast POS

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Pricing

$0-$165 plus custom plan

Online Ordering

Yes

Equipment Cost

$0-$847

Pros

  • Excellent built-in inventory management
  • Free plan
  • Custom-built restaurant POS hardware
  • Strong online ordering and takeout features

Cons

  • 2+ year contract required
  • Can get expensive, depending on feature selection and hardware options

Why We Chose Toast For Restaurant Inventory Management

Toast is a popular Android POS system built specifically for restaurants.

With hardware options such as tableside ordering tablets, self-ordering kiosks, and a customer-facing checkout screen, Toast works great for casual dining environments ranging from fast-casual to sit-down. Toast also has excellent online ordering, takeout, and delivery functionality, making this system a hit for restaurants that do a lot of takeout orders.

Toast Pricing

Toast POS Plans Price  When To Use
Starter Kit $0/month You have a small, single-location restaurant with basic feature needs
Point of Sale $69/month You need a full point of sale suite with processing and custom hardware
Essentials $165/month You need advanced features and are looking to bundle with digital ordering
Custom Custom Larger businesses looking to access the entirety of Toast’s features

Toast packages start at $0/month for one terminal and core features, but can rise north of $300/month depending on how many features, terminals, or hardware add-ons you want. (Note that the free plan has a higher payment processing fee.)

Toast Features For Restaurant Inventory Management

Toast POS Features Availability
Multi-Store Support
Contactless Payments
Multi-Channel Selling
Gift Cards
Customer Loyalty
Marketing Tools
Online Ordering
Inventory Management
Reporting
Menu Management
Delivery Management
EBT Acceptance
Employee Management
Text Messaging

Some Toast POS features that help restaurants manage their inventory include:

  • Automatically syncs & updates your inventory as items are sold
  • Advanced reporting, including inventory value reports, COGS & variance reports, waste tracking reports
  • Menu engineering feature to improve profitability of inventory
  • Shelf layout feature that maps inventory count based on kitchen setup
  • Inventory software integrations for BevSpot, BrewLogix, Craftable, Marketman, & more

Hardware Cost & Options

Toast offers various custom-built restaurant-grade POS devices built with an Android OS. A standard Toast Flex countertop kit that includes a terminal, payment reader, and router, is $875. You can also purchase a kit that includes a handheld point of sale terminal for $627 (includes Toast Go 2, wireless access point, and router).

Another option is to pay $0 for your hardware upfront and pay Toast a higher payment processing fee.

Payment Processing

Toast’s standard payment processing fee is 2.49% +$0.15 for in-person payments. Online payments are charged at a rate of 3.5% + $0.15

As mentioned, you can get free Toast software and hardware if you pay a higher payment processing fee (2.99% + $0.15). However, for most restaurants, it will make more sense to pay for your hardware and software outright.

Contract Requirements/Warnings

Toast requires that you use Toast Payments for credit card processing. The standard Toast contract is two years.

Get Started With Toast POS

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2. TouchBistro: Best For Payment Processing Options

TouchBistro

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Pricing

$69/month

Online Ordering

Add-on

Equipment Cost

Call for quote

Pros

  • Competitive monthly cost
  • Numerous software integrations
  • Cost-plus processing available
  • Option to use outside payment processors

Cons

  • Basic built-in inventory functionality
  • 1+ year contract required

Why We Chose TouchBistro For Restaurant Inventory Management

TouchBistro is one of the most popular iPad POS systems for restaurants, and it is also among the most affordable restaurant inventory management systems.

While TouchBistro lands on the more basic side in many respects, it is well-priced with a decent inventory management system, as well as the ability to integrate with outside payment processors and third-party inventory software, and other useful features and add-ons like gift cards and loyalty.

TouchBistro Pricing

TouchBistro Plans Price  When To Use
TouchBistro Plan $69/month If you have basic restaurant needs and are interested in purchasing add-ons

TouchBistro’s $69/month starter package includes basic inventory management and free integration with third-party inventory software apps. You can also purchase various add-ons, such as online ordering ($50/month) and reservation management ($229/month).

TouchBistro Features For Restaurant Inventory Management

TouchBistro Features Availability
Multi-Store Support
Contactless Payments
Multi-Channel Selling
Gift Cards Add-on
Customer Loyalty Add-on
Marketing Tools Add-on
Online Ordering Add-on
Inventory Management
Reporting
Menu Management
Delivery Management
EBT Acceptance
Employee Management
Text Messaging

Some TouchBistro features specific to restaurant inventory management include:

  • Manual ingredient entry with unit of measure, wholesale cost, retail price, and associated recipe(s)
  • System automatically tracks ingredients as menu items are sold
  • Provides staff with in-service low-stock alerts
  • Basic inventory reports
  • Includes software integrations for Bevcheck, MarketMan, Craftable, Wisk, FreePour, Optimum Control, & MarginEdge

Hardware Cost & Options

TouchBistro uses iPad POS hardware. You will have to call TouchBistro for a hardware quote.

Payment Processing

TouchBistro is flexible in terms of what payment processor you can use. Some processing options include Square, TSYS, and Worldpay, as well as TouchBistro’s in-house processor, TouchBistro Payments powered by Chase. TouchBistro Payments offers cost-plus pricing (also known as interchange-plus), which is one of the more affordable and transparent payment processing models.

Contract Requirements/Warnings

TouchBistro does require a contract (usually one year). Your term length will be included in your contract.

Get Started With TouchBistro

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3. Lightspeed Restaurant: Best For Inventory Integrations

Lightspeed Restaurant POS

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Pricing

$69-$399/month

Online Ordering

Yes

Equipment Cost

Contact Lightspeed to receive a quote

Pros

  • Large amount of inventory integrations available
  • Free BevSpot account for inventory management
  • Integrated online ordering
  • Choice of payment processors

Cons

  • Not as affordable as some systems
  • Standard contracts are 14-months

Why We Chose Lightspeed Restaurant For Restaurant Inventory Management

Lightspeed Restaurant is a fast, affordable restaurant inventory management system and iPad POS with digital ordering.

Though Lightspeed does have some built-in inventory management features, Lightspeed Restaurant really shines when it comes to its third-party restaurant inventory software integrations.

Lightspeed Restaurant Pricing

Lightspeed Restaurant POS Plans Price  When To Use
Starter $69/month Single-location restaurants looking to start a loyalty program
Essential $189/month Restaurants with one or more locations looking for online ordering capabilities
Premium $399/month Larger restaurants & hotels looking for custom payment processing rates

Lightspeed Restaurant plans range from $69/month to $399/month. To get advanced inventory management included in your software plan, you’ll need to be on at least the $189/month “Essential” plan. Advanced inventory management is also available as an add-on.

Lightspeed Restaurant Features For Restaurant Inventory Management

Lightspeed Restaurant POS Features Availability
Multi-Store Support
Contactless Payments
Multi-Channel Selling
Gift Cards
Customer Loyalty
Marketing Tools
Online Ordering
Inventory Management
Reporting
Menu Management
Delivery Management
EBT Acceptance
Employee Management
Text Messaging

Lightspeed Restaurant offers the following restaurant inventory management features:

  • Built-in ingredient management with low stock alerts, stock reports, & recipe costing & margins tool
  • Real-time inventory deductions & replenishments
  • Automatic reordering from suppliers
  • Comes with a free version of BevSpot, allowing restaurants to track variance and product loss by item
  • Integrates with inventory software including Craftable, Growzer, MarketMan, ORCA, RapidBar, Restaurant365, RESTOCK, BeerSAVER, Whistle, WISK, & other food inventory apps

Hardware Cost & Options

Lightspeed Restaurant POS hardware is iPad-based. You have the option to source your own components or buy a hardware kit from Lightspeed. For that, you will need to contact Lightspeed for a quote.

Payment Processing

Lightspeed integrates with several payment processors and has its own Lightspeed Payments, which offers flat-rate processing at 2.6% + $0.10 or (for users on the highest-level plan) a custom payment processing fee.

Contract Requirements/Warnings

Lightspeed Restaurant contracts have a standard term of 14 months, but your quote may differ. Your term length will be outlined in your contract.

Get Started With Lightspeed Restaurant POS

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4. Square For Restaurants: Best Free Restaurant POS

Square For Restaurants POS

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Pricing

$0-$60/month/location + custom option

Online Ordering

Yes

Equipment Cost

$0-$799

Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.

Pros

  • Free and affordable plans available
  • Numerous integration options
  • Affordable hardware options
  • No contract

Cons

  • Not an advanced inventory management system (without integrations)
  • Can’t use with an outside payment processor

Why We Chose Square For Restaurants For Restaurant Inventory Management

Square POS is a great basic, free POS for quick-service and mobile food businesses, such as food trucks. In 2018, Square introduced Square for Restaurants, which has enhanced restaurant features, including restaurant inventory management and a kitchen display system. Square for Restaurants, available on iPad and Square Register, even has a free plan.

Square For Restaurants Pricing

Square For Restaurants POS Plans Price  When To Use
Free $0/month Use if you need the basics in restaurant POS software plus simple processing
Plus $60/month/location Use if you need advanced inventory and 24/7 customer service
Premium Custom Use if you process more than $250,000 a year

Besides the free plan, Square For Restaurants also has a $60/month “Plus” plan with a full suite of features. You also have the option to use the free Square For Restaurants plan with a $20/month Square KDS subscription. If you use a mobile POS kit for tableside ordering, you’ll be billed another $50/month.

Yet another option for restaurants who want to use Square is to use the free version of regular Square (Square Point of Sale) with a third-party restaurant inventory management system, such as BevSpot (which also offers a freemium account to Square users) or Shopventory. As mentioned, Square also integrates with TouchBistro.

Square For Restaurants Features For Restaurant Inventory Management

Square For Restaurants POS Features Availability
Multi-Store Support
Contactless Payments
Multi-Channel Selling
Gift Cards
Customer Loyalty Add-on
Marketing Tools Add-on
Online Ordering
Inventory Management
Reporting
Menu Management
Delivery Management
EBT Acceptance
Employee Management
Text Messaging

The free version of Square for Restaurants has very basic inventory capabilities, but they can be enhanced with inventory integrations, including MarketMan, Peachworks, and Yellow Dog Inventory. If you opt for Square for Restaurants Plus, you’ll get more advanced inventory features, such as auto-86ing and menu reports. 

Hardware Cost & Options

Square For Restaurants works best with a Square Stand for iPad ($149 without iPad) or Square Register ($799) setup.

You can also use a Square Terminal ($299) or Restaurant Mobile POS Kit ($259) for tableside payments and an Android Microtouch tablet ($599 to $699) for KDS purposes.

Payment Processing

Whether you use Square Point of Sale, Square for Restaurants Free, or Square for Restaurants Plus, you’ll get Square’s same flat processing rate of 2.6% + $0.10. None of Square’s POS systems integrate with outside payment processors, however.

Contract Requirements/Warnings

Square For Restaurants has no contract, which means you can use it on a month-to-month basis and quit at any time.

Get Started With Square For Restaurants POS

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5. Thrive By Shopventory: Best For Advanced Inventory Management

Shopventory

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Pros

  • Reasonably priced
  • Advanced food inventory management
  • Integrates seamlessly with Square, Clover, Shopify, & Quickbooks Online

Cons

  • Only integrates with a few POS systems

Why We Chose Thrive By Shopventory For Restaurant Inventory Management

Thrive by Shopventory (formerly Shopventory) is an advanced restaurant inventory management app that works in both retail and restaurant environments. It's the only food inventory app on this list that's not a POS -- but that's OK because it is designed to integrate seamlessly with your POS.

Specifically, Thrive By Shopventory integrates with Square, Clover, and Shopify POS, turning any of those basic POS systems into an advanced restaurant inventory solution. Shopventory will also sync your daily restaurant sales and values with QuickBooks.

Thrive By Shopventory Pricing

Thrive by Shopventory’s Standard plan is reasonably priced at $79/month for up to two locations. If you have more locations or need a few more advanced features (such as daily QuickBooks syncing), you may be better served by the $199/month Professional plan. Especially when you consider that Shopventory can turn a free POS like Square into a food inventory management powerhouse, Shopventory provides a whole lot of bang for your buck.

Thrive By Shopventory Features For Restaurant Inventory Management

Shopventory has an extensive list of inventory features, and I don’t have room to list all of them. Some of its notable functions include:

  • PO and vendor management
  • Modifier inventory tracking
  • Mobile barcode scanning
  • Expiration date notifications
  • Par-level email alerts
  • Lot COGS management

Hardware Cost & Options

Thrive by Shopventory recommends using an Asus Convertible Touchscreen Notebook ($395) or iPad Pro ($970) with a SocketScan scanner and DYMO label printer. You can visit Thrive By Shopventory’s website to see the exact hardware recommendations.

Payment Processing

Thrive by Shopventory does not include payment processing. As mentioned, Thrive by Shopventory will sync with the POS system you use for payment processing (so long as you use Square, Clover, or Shopify POS).

Contract Requirements/Warnings

Thrive by Shopventory is a month-to-month service with no contract.

Get Started With Shopventory

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5 Best Practices To Make The Most Of Your Restaurant Inventory Management Software

While software can automate a lot of the inventory process, there are certain actions you must take to make your software really work for you. Here are some things you should do with your inventory software to make your restaurant inventory management system more effective.

1. Take Your Setup Seriously

Your inventory system’s initial setup can be tedious, but it’s important you do it properly to ensure your system works correctly and delivers the correct data. Make sure to be exact and consistent when entering your quantities, units of measure, etc. If the system lets you sync your food suppliers, you can automatically import your invoices after the initial sync. Once you’re all set up, many of your inventory tasks will start managing themselves. Of course, you’ll need to train your staff on the system as well.

2. Check Your Reports Regularly

Your POS data contains valuable inventory information, especially when coupled with inventory management software. Make sure you familiarize yourself with all of your inventory reports so that you can use the data to your advantage. If you check your reports regularly, you will gain a better understanding of your overall inventory situation as well as notice any significant changes or discrepancies.

3. Find Your COGS

When it comes to improving your restaurant’s inventory management, finding your COGS, or Cost of Goods, is an important first step. After setting up your inventory software and letting it do its magic, you may start to notice that your true COGS for a certain item is actually different from what you thought it was. Once you know your real COGS, you can consider ways to lower them, such as finding a different supplier for a certain ingredient.

4. Identify Problem Areas

Your software will start to show you patterns that point to problem areas in your inventory system. For example, you may be able to identify your top sources, or spillage or spoilage, or even which employees waste the most food (provided that your software also includes employee management). You can then use this information to make necessary changes in your inventory processes. In particular, variance reports can show discrepancies in your inventory due to waste, theft, or user error.

5. Rethink Your Menu

Most food inventory software products have a feature that helps you re-engineer your menu to make it more profitable. For example, the software can help you identify slow-moving menu items that cause ingredients to go bad before you get a chance to use them. Even if the program doesn’t have a specific feature that makes menu suggestions, standard inventory data collected by your software (for example, COGS) can still help guide your menu decisions.

Restaurant Inventory Management Software FAQs

What is the best restaurant inventory management software?

The best restaurant inventory management software depends on your budget and needs. Toast is an advanced restaurant POS with built-in inventory management, though more basic restaurant POS systems like TouchBistro, Square, and Lightspeed Restaurant have the ability to integrate with a variety of dedicated restaurant inventory apps.

Is there free restaurant inventory management software?

Square for Restaurants is free, but it has only basic inventory management. Toast POS has a free plan with more advanced inventory features, but it comes with high payment processing fees. Another option is to use a free Square or Square for Restaurants plan with an affordable third-party inventory integration, like Shopventory or BevSpot.

Which Restaurant Inventory Management Software Is Best For Me?

The best restaurant inventory software depends on whether you want inventory software that integrates with the POS system you use or if you’d rather switch to a POS with built-in inventory features.

If you’re not too familiar with restaurant inventory management and want to increase your general knowledge on the subject, read up on restaurant inventory management methods and terminology.

In Summary: The 5 Best Restaurant Inventory Management Systems

  1. Toast POS:
    • Best for casual dining
    • $0+/month
    • 2.49% +$0.15 processing
  2. TouchBistro:
    • Best for payment processing options
    • $69+/month
    • Cost-plus processing
  3. Lightspeed Restaurant POS:
    • Best for inventory software integrations
    • $69+/month
    • 2.6% + $0.10 processing
  4. Square For Restaurants POS:
    • Best for free restaurant inventory management
    • $0+/month
    • 2.6% + $0.10 processing
  5. Shopventory:
    • Best for advanced restaurant inventory management
    • $79+/month
    • Integrates with Square, Clover, Shopify POS for payments
Shannon Vissers

Shannon Vissers

Senior Staff Writer at Merchant Maverick
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
Shannon Vissers
View Shannon Vissers's professional experience on LinkedIn.
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