Variance and theft flags

Last updated: October 21, 2026

Key takeaway: Stiq flags large changes from the previous inventory count while the counter can still recount. The current guard uses the previous item total as its baseline. Sales-based theoretical-versus-actual analysis is a separate reporting workflow that uses recipes, sales, counts and deliveries. A count flag is a prompt to check the number, not proof of theft.

What it's worth: one point of food cost on $1M in food sales is $10,000 a year. Varastiq helps you review item usage in reporting and large count changes while counting.

What is inventory variance?

Inventory variance is the gap between what you should have used and what you actually used. Actual usage comes from counts and deliveries: beginning count + received − ending count. Expected usage comes from sales: items sold × the recipe quantity in each. A positive gap means product left the building without a sale behind it.

Try the math on a few items with the free food cost variance calculator.

What causes variance in a restaurant?

Not every gap is theft. Usually it's one of these, in roughly the order to check:

• Counting errors. A case counted as each, a missed shelf, a partial bottle guessed.
• Missing invoices. A delivery that came in but never got entered makes usage look too low, and the next count looks too high.
• Over-portioning. A heavy hand on proteins, cheese or pours. Small per plate, large per week.
• Waste that wasn't logged. Spoilage, dropped pans, comped re-fires.
• Recipe errors. The recipe says 6 oz, the line plates 8 oz because that's how it's always been done.
• Unrung sales and theft. Food or drinks that leave without a ticket.

Varastiq's job is to make the gap visible fast and per item. Your job is to find which of those it is.

How does Varastiq flag variance during the count?

1. The previous count provides the baseline. Stiq compares your entered item total across its shelves with the prior count. This guard does not yet adjust that baseline for deliveries and POS usage.
2. You count in walk order. Search for an item and enter its quantity or measured weight.
3. If the count is off by more than a threshold, the app flags it right there. For example: the previous count was 28 lb and the new total is 4 lb.
4. You recount or log the variance in one tap. Recounts catch typos. Submitted counts are available in the owner portal.
5. Before you submit, you see everything that doesn't add up: big drops, pending items and anything expiring.

Why catch variance at the count instead of at month-end?

Because the person who can explain it is standing in the walk-in right now. Three weeks later the delivery slip is gone, the shift has turned over and the product is long used. A same-day flag helps you check an unusual change before the count is submitted. Use delivery and sales records to investigate what caused it.

How does variance connect to theoretical vs actual food cost?

Theoretical food cost comes from recipes and sales; actual food cost comes from counts and purchases. Review that gap in reporting. The current Stiq count-screen guard checks changes from the previous count, so it is a separate check rather than a POS-adjusted stock balance. Read the theoretical vs actual food cost guide.

Who is this for?

Owners who aren't in the building every shift, GMs responsible for food cost, and bar managers watching high-value items like proteins and liquor.

When it's not the right fit: if you don't count at least weekly, there's nothing to compare against. Start with a steady count routine first.

Frequently asked questions

What does the current count flag compare?

The count-screen guard compares the entered item total with its previous count. It does not yet calculate a delivery- and sales-adjusted expected stock balance.

Does a variance flag mean someone is stealing?

No. A flag means the count doesn't match the math. Common causes are counting errors, missing invoices, over-portioning, unlogged waste and recipe errors. Theft is one possibility to rule in or out.

Can I recount a flagged item?

Yes. When an item is flagged, you can recount it or log the variance with one tap before you submit the count.

Who sees variance flags?

Owners and managers can review submitted counts in the owner portal. The count-screen guard lets the counter check large changes before submission.

Does variance flagging need a POS connection?

No. The previous-count guard works without a live POS connection. Sales-based theoretical-usage reporting needs Toast sales or a supported sales-report import.

Catch the next drop while it's still on the shelf

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