What can be a consequence of not using FIFO for inventory management?

The principle of FIFO, which stands for "First In, First Out," is crucial for effective inventory management, especially in the food service industry. When FIFO is not followed, older inventory items may not be used before newer items are added. This can lead to an increased risk of spoilage because items that should have been used first might sit on the shelf longer than necessary, potentially going beyond their expiration dates or losing quality.

This is particularly relevant in a restaurant setting where perishable goods are commonplace. Without adhering to FIFO practices, the likelihood of serving expired or spoiled food increases, which can negatively impact food quality, customer satisfaction, and overall business reputation. It also raises health and safety concerns, as serving spoiled food can lead to foodborne illnesses. Therefore, emphasizing FIFO helps ensure that older stock is prioritized for use, minimizing waste and maintaining high food quality standards.