What is FIFO? Definition for restaurants

FIFO (First In, First Out) is an inventory management method where the oldest stock is used before newer deliveries. For restaurants, FIFO is fundamental to food safety and cost control. A walk-in cooler without FIFO becomes a graveyard of forgotten ingredients. Proper rotation means less waste, lower food costs, and safer plates reaching guests.

Key facts

• Definition: Use oldest inventory first, before newer deliveries
• Purpose: Reduce spoilage, maintain food safety, control costs
• Application: All perishable goods including produce, proteins, dairy, and prep items
• Why it matters: Prevents waste, reduces food costs by 2-5%, maintains quality and safety

The quick definition

FIFO means exactly what it says: First In, First Out. The first items delivered to your kitchen should be the first items used. When you receive new tomatoes, they go behind the tomatoes already in storage. Cooks always grab from the front.

This simple principle prevents:

Why FIFO matters

Food safety

Proper FIFO maintains safe food handling:

• Products used within safe timeframes
• Expired items identified and discarded
• Clear dating shows product age
• Consistent quality from storage to plate

Health inspectors check for FIFO compliance during inspections.

Waste reduction

Without FIFO, inventory hides and spoils:

A restaurant throwing away $500 weekly in spoiled food is burning $26,000 annually.

Cost control

FIFO directly reduces food costs:

For a restaurant with $30,000 monthly food purchases, 3% savings equals $900 per month.

Quality consistency

Fresh ingredients make better food:

• Produce at peak ripeness
• Proteins within optimal windows
• Dairy before quality degrades
• Herbs and aromatics still vibrant

FIFO does not just prevent waste; it improves what reaches the plate.

How to implement FIFO

1. Date everything

Label all incoming inventory with:

Use waterproof labels and permanent markers for walk-in storage.

2. Organize storage properly

Storage layout determines FIFO success:

Walk-in cooler:

• New deliveries go in back
• Older stock stays in front
• Same items grouped together
• Clear sightlines to all products

Dry storage:

• Same rotation principles
• Cans and packages dated
• Heavier items at bottom
• Clear organization by category

Prep containers:

• Date all prepped items
• First-made goes to front
• Clear containers for visibility
• Regular rotation checks

3. Train every team member

FIFO only works if everyone follows it:

New hires should understand FIFO before touching inventory.

4. Conduct rotation checks

Verify FIFO compliance regularly:

• Daily walk-through during receiving
• Weekly deep check of all storage
• Monthly inventory audit
• Spot checks during service

Catching rotation errors quickly prevents waste.

5. Design for FIFO success

Physical setup makes FIFO easier or harder:

Invest in storage that makes FIFO the path of least resistance.

FIFO for different inventory types

Produce

Most critical for FIFO:

Short shelf lives make rotation essential.

Proteins

High-cost items demand careful rotation:

Date proteins immediately upon receiving.

Dairy

Temperature-sensitive with clear expiration:

Check dairy dates during every rotation check.

Dry goods

Longer shelf life but still needs rotation:

Even long-life items benefit from FIFO to maintain quality.

Common FIFO mistakes

Lazy receiving

Stacking new deliveries in front because it is easier destroys FIFO instantly. Take the extra minute to rotate.

Missing labels

Undated items cannot be rotated properly. Label everything, every time.

Ignoring prep items

FIFO applies to prepped ingredients too. That container of diced onions from three days ago should be used before yesterday’s batch.

No accountability

When nobody checks rotation, nobody maintains it. Regular verification keeps FIFO alive.

Poor storage design

Fighting your storage layout to maintain FIFO is exhausting. Fix the physical setup to make rotation natural.

FIFO versus LIFO

LIFO exists in accounting but makes no sense for perishable food inventory.

Measuring FIFO effectiveness

Track these metrics:

Improving FIFO shows up in lower waste and food costs.

Related terms

• BOH (Back of House) - Where FIFO happens; kitchen inventory management
• Prime cost - Food cost is half of prime cost; FIFO directly reduces it
• 86 (Eighty-Six) - Proper FIFO reduces 86s from spoiled inventory

Related: Table turnover rate | Capacity planning