Prepare SOPs for Store Audit & Controls in Hotels and Restaurants

Effective Store Audit & Control SOPs are essential for maintaining inventory accuracy, cost control, compliance, and transparency in hotel and restaurant operations. A well-defined Standard Operating Procedure (SOP) ensures that store activities are consistent, auditable, and aligned with financial and operational standards.

What Are Store Audit & Control SOPs?

Store Audit & Control SOPs are documented procedures that define how inventory is received, stored, issued, recorded, verified, and audited. These SOPs help prevent pilferage, reduce wastage, and ensure proper accountability.

Objectives of Store Audit & Control SOPs

• Ensure accurate inventory records

• Prevent pilferage and misuse

• Maintain hygiene and safety standards

• Strengthen internal controls

• Support financial accuracy and cost control

Scope of Store Audit SOPs

These SOPs apply to:

• Main Store

• Dry Store

• Beverage Store

• Engineering Store

• Housekeeping Store

Roles & Responsibilities

Storekeeper

• Maintain stock records and bin cards

• Ensure proper storage and FIFO

• Issue materials only against approved requisitions

Department Heads

• Approve material indents

• Monitor consumption and usage

• Participate in audits when required

Purchase Department

• Issue approved purchase orders

• Coordinate with vendors

• Verify pricing and delivery terms

Finance / Audit Team

• Conduct regular store audits

• Reconcile physical and book stock

• Report variances and deviations

General Manager

• Review audit reports

• Ensure corrective actions

• Maintain overall control and compliance

SOP 1: Receiving & Inspection Control

Procedure:

1. Receive goods only against approved Purchase Orders (PO).

2. Verify quantity, quality, price, and expiry dates.

3. Prepare Goods Receiving Note (GRN) with proper authorization.

4. Reject and return damaged or substandard items immediately.

5. Forward invoices to finance after verification.

Control Points:

• No direct delivery to departments

• All receipts must be documented

SOP 2: Storage & Stock Management Control

Procedure:

1. Store items in designated areas as per category.

2. Follow FIFO method strictly.

3. Label all items with date and batch number.

4. Store chemicals separately from food items.

5. Maintain recommended temperature for perishables.

Control Points:

• No expired or damaged stock allowed

• Regular shelf inspections

SOP 3: Issue & Consumption Control

Procedure:

1. Issue materials only against approved Material Requisition Slip (MRS).

2. Verify department head authorization.

3. Record all issues in issue register or system.

4. Issue items on daily or shift-wise basis.

5. Control high-value items separately.

Control Points:

• No verbal or unauthorized issues

• Consumption review against sales

SOP 4: Inventory Record & Documentation Control

Procedure:

1. Maintain bin cards for each item.

2. Update stock records immediately after every transaction.

3. Define minimum, maximum, and reorder levels.

4. Prepare daily and monthly stock movement reports.

5. Reconcile physical stock with book stock.

Control Points:

• Zero tolerance for undocumented movements

SOP 5: Physical Stock Verification & Audit

Procedure:

1. Conduct daily checks for sensitive items.

2. Weekly random stock checks.

3. Monthly full physical stock audit.

4. Quarterly surprise audits by management.

5. Investigate variances beyond tolerance limits.

Control Points:

• Audit must be independent

• Variance approval required from GM

SOP 6: Hygiene, Safety & Compliance Control

Procedure:

1. Maintain cleanliness and pest control schedules.

2. Ensure store staff wear proper uniforms and PPE.

3. Maintain MSDS for all chemicals.

4. Follow FSSAI and fire safety norms.

5. Ensure waste disposal procedures are followed.

Control Points:

• Hygiene violations escalated immediately

SOP 7: Security & Loss Prevention Control

Procedure:

1. Restrict store access to authorized staff only.

2. Maintain CCTV coverage in store areas.

3. Keep store keys under controlled custody.

4. Record and investigate any pilferage incidents.

5. Conduct surprise checks.

Control Points:

• Zero tolerance for pilferage

SOP 8: Audit Reporting & Corrective Action

Procedure:

1. Prepare store audit report with findings.

2. Categorize observations (Critical / Major / Minor).

3. Assign responsibility and timelines.

4. Track closure of audit points.

5. Conduct management review meetings.

Control Points:

• No repeat observations allowed

Key Performance Indicators (KPIs)

• Stock variance percentage

• Audit compliance score

• Inventory turnover ratio

• Wastage and spoilage percentage

Benefits of Strong Store Audit SOPs

• Improved inventory accuracy

• Better cost control

• Reduced wastage and pilferage

• Improved compliance and accountability

• Smooth departmental operations

Well-defined Store Audit & Control SOPs are essential for the financial health and operational efficiency of hotels and restaurants. Consistent implementation, regular audits, and management oversight ensure transparency, discipline, and long-term profitability.

At County Park & Suites, we specialize in creating customized store audit SOPs, control formats, and inventory systems—helping hotels achieve operational excellence and financial control.