What is defined as shrinkage in deli operations?

Shrinkage in deli operations refers to the loss of inventory that occurs due to theft, waste, or spoilage. This concept is critical for understanding inventory management and overall financial health within a deli. When items are stolen, wasted, or spoilaged, the deli experiences a decrease in available products without a corresponding sale, directly impacting profitability.

Monitoring shrinkage helps deli managers identify areas of concern, such as employee theft or issues with food safety that lead to spoilage. By addressing these problems, operations can streamline efficiency and boost financial performance. Understanding shrinkage is essential for maintaining inventory control and ensuring that products are fresh and available for customers.