Guide

Running a sweet shop’s stock: production batches, selling by weight, and wastage

A sweet shop makes most of what it sells, sells most of it loose by weight, and throws some of it away. Stock only balances when all three are counted the same way.

A sweet shop’s stock balances when three things are counted in the same unit: what the kitchen made (a batch, which uses up its ingredients), what the counter sold (by the kilo, recorded in grams) and what was thrown away (wastage, with a reason).

Count the shelf every morning against yesterday’s closing plus today’s production. Any gap is a correction you write down with a reason — not a number you quietly absorb.

Why a mithai shop’s stock is different

  • You make it. A kilo of kaju katli on the shelf used cashew, sugar and ghee that were in the store yesterday, so stock moves twice for every sale.
  • You sell it loose, by weight, in whatever quantity a customer asks for — 250 g of one sweet, 150 g of another.
  • It does not keep. Milk sweets have a short life, and what is left at closing is tomorrow’s decision.
  • Ingredients become other ingredients. Milk becomes khoya; khoya becomes peda, barfi and gulab jamun.
  • Demand jumps around Diwali, Raksha Bandhan and the wedding season, when a planning mistake costs the most.

Count in grams, sell by the kilo

Price sweets per kilo — that is how customers compare — but record stock in whole grams: 350 g, not 0.35 kg. Whole numbers add up exactly, and nobody misreads 0.35 as 35 grams.

Worked example

Kaju katli at ₹1,280 a kilo. A customer asks for 250 g: ₹1,280 × 0.25 = ₹320, and the stock of kaju katli goes down by 250 g.

Weigh the sweets, not the box

Put the empty box on the scale and press tare (zero) before you fill it, so the customer pays for sweets and not for cardboard. Kerala’s Legal Metrology Department tells consumers to check that the box’s weight is not included in the weight of the sweets, and the Legal Metrology Act, 2009 makes it an offence to deliver less than the quantity paid for.

The scale has to be verified

A weighing instrument used for selling must be verified and stamped by the Legal Metrology department before it is used, and then re-verified: every twelve months for an electronic scale, every twenty-four months for weights and beam scales. Using an unverified scale is punishable with a fine of ₹2,000 to ₹10,000 under the Act.

A label-printing scale helps with pre-weighed packs: it prints a barcode on the pack that carries the item and its weight, so the counter scans it and bills the exact weight without weighing again.

Recipes and batches: stock that moves twice

A recipe is the list of ingredients one batch uses. When the kitchen records “made 10 kg of peda”, the recipe takes the khoya, sugar, ghee and elaichi off the store at the same moment, so the store and the shelf agree. Give khoya its own recipe — so many litres of milk to the kilo — and “made 10 kg of peda” reaches back through the khoya to the milk, with no second set of books.

Worked example — the numbers are illustrations, use your own

Say your kitchen gets 1 kg of khoya from 5 litres of milk bought at ₹62 a litre, so khoya costs ₹310 a kilo. One kilo of peda takes:

Khoya 800 g800 g × ₹310/kg = ₹248.00
Sugar 200 g200 g × ₹44/kg = ₹8.80
Ghee 30 g30 g × ₹650/kg = ₹19.50
Elaichi 5 g5 g × ₹3,000/kg = ₹15.00
Ingredient cost of 1 kg of peda₹291.30

A 10 kg batch therefore uses 8 kg of khoya — 40 litres of milk — and costs ₹2,913 in ingredients. The ingredients weigh more than the peda that comes out, because cooking drives off moisture: weigh the finished batch, do not add up the ingredients.

If a batch would use more of an ingredient than the store says it has, stop and find out why before cooking: either the store count is wrong or the batch will come out short.

The morning count

  1. Start from yesterday’s closing for each item — what the register or the system says is on the shelf.
  2. Add what the kitchen made this morning, each batch recorded as production.
  3. Take out anything that has gone off overnight, as wastage with a reason, before it can be sold.
  4. Weigh every tray.
  5. Compare. Record any difference as a count correction with a reason: “tray weighed wrong yesterday”, “tasting”, or “not known”.

Worked example

Yesterday’s closing, kaju katli4,250 g
Made this morning5,000 g
Expected on the shelf9,250 g
Counted9,130 g
Short120 g = ₹153.60 at the selling price

One morning’s 120 g is nothing. Every morning’s 120 g is about 3.6 kg a month of your most expensive sweet — ₹4,608 at the counter price. It is worth finding out whether it is tasting, the scale or the tray weights.

Dates on trays, and first expiry, first out

From 1 October 2020 the food regulator, FSSAI, made it compulsory to show a “best before” date on trays of loose sweets. It withdrew that direction on 7 November 2023, and showing the date is now voluntary. Keep doing it anyway: a date on each tray is what makes FEFO — first expiry, first out — possible, so the tray that expires first is sold first even if a fresher one came out of the kitchen later.

A tray label needs four things: the sweet, the date made, the best-before date, and the batch weight. Boxes packed in advance, when the customer is not there, are pre-packaged goods and must carry the declarations the packaged-commodities rules require, such as the net quantity and the month and year of packing.

Wastage: write it down, with a reason

ReasonExampleWhat it tells you
Past its dateA tray unsold by its best-beforeToo much made, or made on the wrong day
DamagedA dropped tray, broken piecesHandling or storage
QualityA batch that did not setThe recipe or the kitchen
Tasting and samplesPieces given to customers to tryA marketing cost — measure it
StaffSweets eaten by the staffA policy question, not an accusation

Value wastage at cost and compare it with what you produced: wastage % = cost of wastage ÷ cost of production × 100. A week with ₹3,200 of wastage against ₹64,000 of production is 5%. There is no reliable published “normal” figure for sweet shops — track your own week by week and push it down.

Pricing from what it cost

Once a kilo of peda has a cost, the price becomes a decision you can check.

Worked example

Ingredient cost of 1 kg of peda₹291.30
Counter price₹560 a kg
Margin on the selling price48%
Markup on cost92.2%

These figures leave GST out. If your counter price includes GST, take the tax out before you compare it with cost.

Remember what a recipe does not see — gas, wages, rent, boxes and wastage. A margin that looks healthy on ingredients alone may not be.

Festival planning

  • Plan from last year’s day-by-day sales of each sweet for the same festival, not from memory.
  • Make the long-life items — dry sweets, namkeen — first, and the short-life milk sweets closest to the day.
  • Take advance orders for large boxes with a deposit, so production follows real demand.
  • Count the shelf every morning of the festival week; that is when shortages hide best.

What the bill must show

Since 1 January 2022 FSSAI has required every food business to print its 14-digit FSSAI licence or registration number on cash receipts, invoices, cash memos and bills. From 1 April 2026 a basic FSSAI registration covers an annual turnover up to ₹1.5 crore, and a State licence covers more than ₹1.5 crore up to ₹50 crore; registrations and licences issued from that date do not need renewing.

How Nivasik handles this

Nivasik’s POS works for a sweet shop as it does for a restaurant, with the parts a mithai counter needs.

  • Sell by the piece or by the kilo: a keypad for weight, with stock counted in grams; the weight box switches between kg and g and starts in kg.
  • Label-scale EAN-13 barcodes that carry the weight can be scanned at the counter.
  • Stock comes off as it sells, including recipes and multi-stage production — milk → khoya → peda.
  • Open the day by counting the shelf: yesterday’s closing, what the kitchen made, what has gone off, and any difference as a correction with a required reason.
  • Batches or lots with their own cost and expiry, sold first-expiry-first-out; wastage recorded.
  • Prices from what you paid: MRP (tax-inclusive, taken apart correctly), a margin % or a flat margin.
  • Restock, purchase orders suggested from reorder levels, supplier bills, and returns with debit notes.
  • Offline billing on shop counters with real bill numbers, synced when the internet is back.

What it does not do

  • A weighing scale is read through label-scale barcodes, not over USB.
  • No card or UPI terminal integration and no payment gateway: a UPI QR code for the exact amount is a QR, not a gateway.

POS costs ₹1,499 per outlet a month, on any plan or on its own, after a 45-day free trial — see pricing.

Questions people ask

How do I calculate the cost of 1 kg of sweets?

Add up the ingredient cost of one batch at your own prices, then divide by the weight the batch actually produced. Weigh the finished batch: cooking drives off moisture, so the ingredients weigh more than the sweets.

Should the box be weighed with the sweets?

No. Tare the scale with the empty box first. Legal Metrology guidance tells customers to check that the box is not included, and delivering less than the quantity paid for is an offence under the Legal Metrology Act.

Is a best-before date compulsory on loose sweets?

It was from 1 October 2020, but FSSAI withdrew that direction on 7 November 2023, so it is now voluntary. It is still the easiest way to sell the oldest tray first.

How often must a sweet shop’s scale be re-verified?

Every twelve months for an electronic scale, and every twenty-four months for weights and beam scales, under the Legal Metrology (General) Rules, 2011.

What is a normal wastage percentage for a sweet shop?

There is no reliable published figure. Track your own wastage at cost every week, with a reason for each entry, and work on the biggest reason first.

Sources

  1. Direction on “Best Before” date for non-packaged / loose sweets — Food Safety and Standards Authority of India, 25 September 2020. Mandatory from 1 October 2020.
  2. Withdrawal of the direction on “Best Before” date for loose sweets — Food Safety and Standards Authority of India, 7 November 2023. Declaring the date is now voluntary.
  3. FSSAI licence / registration number on cash receipts and bills — Food Safety and Standards Authority of India, 13 September 2022. Mandatory with effect from 1 January 2022.
  4. Revised turnover thresholds for registration and licences — Food Safety and Standards Authority of India, 13 March 2026. Effective from 1 April 2026.
  5. FAQs on the Licensing and Registration Amendment Regulations, 2026 — Food Safety and Standards Authority of India, 27 March 2026. Perpetual validity of licences and registrations.
  6. The Legal Metrology Act, 2009 — India Code, Ministry of Law and Justice, consolidated text as of May 2026. Sections 24 (verification), 30 (short weight) and 33 (unverified weights).
  7. Frequently Asked Questions on Legal Metrology — Department of Consumer Affairs, accessed 25 September 2026. Question 22: re-verification periods under rule 27(2) of the Legal Metrology (General) Rules, 2011.
  8. Consumer guidance — Legal Metrology Department, Government of Kerala, 23 May 2025. Check that the weight of the box is not included in the weight of the sweets.
  9. Legal Metrology (Packaged Commodities) Rules, 2011 — India Code, Ministry of Law and Justice, 7 March 2011, as amended. Rule 6: declarations on a package.

Last reviewed: , by the Nivasik Team. Found something out of date? Write to support@nivasik.com and we will correct it.

Sell by the kilo, count in grams, and let the batches keep the books.

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