Restaurant Operations
Day-to-day business and management terms
86'd
Industry slang meaning a menu item is sold out or unavailable for the rest of service.
Break-Even Point
The revenue level where your restaurant's total costs exactly equal total income.
COGS
Cost of Goods Sold — the direct cost of ingredients used in the dishes your restaurant sells.
Cover
One seated customer, used to measure restaurant capacity and revenue per guest.
Covers Per Labour Hour
The number of customers served for every hour of paid staff time.
Food Cost
The total cost of ingredients used to prepare the dishes your restaurant serves.
Ghost Kitchen
A restaurant that operates exclusively for delivery, with no dine-in seating or storefront.
Inventory Turnover
How quickly your restaurant uses and replaces its food inventory.
Labour Cost Percentage
Total staff wages and benefits expressed as a percentage of your restaurant's revenue.
Monkey Dish
A small, round bowl used in restaurants for sides, condiments, and kitchen prep.
No-Show
A customer who makes a reservation but does not arrive or cancel.
Prime Cost
The combined total of your restaurant's food cost and labor cost.
Profit Margin
The percentage of revenue remaining after all expenses have been paid.
RevPASH
Revenue Per Available Seat Hour — how much revenue each seat generates per hour.
Table Turn Rate
How many times a table is seated with new guests during a single service period.