Understanding the First In First Out (FIFO) Method
First In, First Out, commonly known as FIFO, is an essential stock rotation system for any business that handles perishable goods. In the context of food handling, FIFO dictates that the food item which was received first (first in) must be the first item to be used or served (first out). This logical system ensures that older inventory does not get forgotten and spoil at the back of a storage area, which is a common and costly problem in many kitchens. By consistently prioritizing the use of products with the closest expiration dates, businesses can maintain product quality, minimize waste, and protect customers from potential foodborne illnesses. While the concept is simple, its consistent and correct application is what delivers significant benefits to a food service operation.
The Core Principles of FIFO in Practice
Implementing FIFO effectively involves more than just a vague understanding of the rule. It requires a systematic approach to receiving, organizing, and utilizing food supplies. Adhering to these principles ensures a smooth inventory flow and prevents costly mistakes.
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Date Marking and Labeling: For FIFO to work, all food products must have a clear use-by, best-before, or received date. This applies to packaged goods as well as items that are decanted or prepped in-house. A consistent, easy-to-read labeling system is the foundation of a reliable FIFO process. Some operations even use a color-coded label system to indicate the day an item was received, allowing for quick visual checks. 
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Organized Storage: When new stock arrives, it should never be simply placed in front of or on top of existing stock. A proper rotation involves moving the older items to the front or top of the storage area, and placing the new deliveries behind or underneath them. This is true for all storage locations, including dry goods, refrigerators, and freezers. Maintaining a clean, organized storage space is a critical part of this process. 
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Routine Checks: A FIFO system is only as good as its maintenance. Regular, routine checks of all storage areas should be conducted to ensure that stock is being rotated correctly and that no items have expired. Any stock found past its use-by date must be discarded immediately to avoid contamination. 
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Staff Training and Accountability: All staff who handle food, from receiving to preparation, must be trained on the FIFO procedure. They need to understand not only the steps but also the 'why' behind the system—the importance of food safety and waste reduction. Making FIFO a part of the standard operating procedure and holding staff accountable is vital for its long-term success. 
Benefits of Implementing First In First Out Food Handling
The advantages of a properly implemented FIFO system extend far beyond simple organization. These benefits create a more efficient, safe, and profitable kitchen environment.
- Reduced Food Waste: By ensuring older products are used first, FIFO significantly reduces the amount of food that spoils and must be thrown away. This directly translates into savings on food costs, as every discarded item represents lost revenue.
- Enhanced Food Safety: Using the freshest ingredients and consistently rotating stock minimizes the risk of serving expired or unsafe food. This protects customers from foodborne illnesses and protects the business from reputational damage and legal issues.
- Improved Inventory Management: FIFO provides a clearer picture of stock levels and turnover. This data can help managers make more accurate purchasing decisions, avoiding overstocking of slow-moving items and ensuring that popular ingredients are always available.
- Increased Quality Control: Proper stock rotation and organization mean that ingredients are consistently used at their peak quality. This results in better-tasting dishes and a higher-quality final product for customers, leading to increased satisfaction and repeat business.
- More Efficient Workflow: When storage is organized logically, staff can find and retrieve ingredients faster, reducing the time spent searching. This streamlined process allows kitchen staff to focus more on food preparation and service, improving overall productivity.
FIFO vs. FEFO: What's the Difference?
While FIFO is the most common inventory method, especially for non-perishables, a related method called First Expiry, First Out (FEFO) is often used for items with very specific expiration dates. Here is a comparison:
| Feature | FIFO (First In, First Out) | FEFO (First Expired, First Out) | 
|---|---|---|
| Primary Logic | Use items based on the order they were received. | Use items based on their expiration date. | 
| Key Priority | Order of receipt. | Expiration date. | 
| Best Use Case | General inventory, especially for non-perishable or long-life items where freshness is less critical. | Highly perishable goods like dairy, prepped foods, and pharmaceuticals where expiration is the most critical factor. | 
| Implementation | Place newer stock behind existing stock upon delivery. | Place items with the earliest expiration date in front, regardless of when they were received. | 
| Example | A new delivery of canned tomatoes goes behind the existing cans. | A yogurt with an expiry of Oct 20th goes in front of a yogurt received earlier but with an expiry of Oct 25th. | 
| Flexibility | Less flexible with mixed expiration dates. | Prioritizes true freshness, more flexible with varied delivery dates. | 
In many professional food environments, the most effective inventory management combines the principles of both FIFO and FEFO, ensuring that the item with the soonest expiration date is used first, regardless of its delivery date.
How to Implement FIFO Effectively in Your Kitchen
To successfully integrate FIFO into your daily operations, follow a structured, step-by-step process:
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Assess Your Current Storage System: Perform an audit of your existing storage. Identify problem areas where older stock gets buried. Acknowledge that a shift is needed to improve efficiency and reduce waste. 
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Establish a Clear Labeling Standard: Develop a universal labeling system for all prepped items and open packaging. Use indelible markers for consistency. Ensure every label includes the item name, received date, and use-by date. 
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Train Your Team: Conduct a training session covering the importance of FIFO, the new labeling system, and the correct stock rotation procedures. Use visual aids like checklists posted near storage areas to reinforce the training. 
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Implement New Receiving Procedures: Make it standard practice that when new deliveries arrive, staff first pull existing stock forward, clean the shelving, and then place the new items in the back. This becomes a fundamental part of the receiving workflow. 
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Utilize Storage Aids: Consider using tools that facilitate FIFO. In walk-in coolers, use adjustable shelving systems that make rotation easier. For smaller, more frequent items, specialized FIFO squeeze bottles can be used for sauces and condiments. 
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Regularly Monitor and Reinforce: Check on the system regularly, especially during downtimes. Look for misplaced items or expired products. Provide gentle, constructive feedback and praise to reinforce the behavior. Make it a part of daily closing duties. 
Conclusion
In the food industry, implementing a robust "first in first out food handling" system is not just a best practice—it is a critical component of a safe, efficient, and profitable operation. By systematically rotating stock based on arrival or expiration dates, kitchens can dramatically reduce food waste, ensure the highest level of food safety for their customers, and streamline their inventory management. The process requires initial effort in training and organization, but the long-term benefits of enhanced food quality, reduced costs, and a more streamlined workflow are undeniable. A commitment to FIFO demonstrates a commitment to excellence and smart business management. For more on safe food handling practices, see the USDA Food Safety and Inspection Service.