Glossary of terms used in restaurant POS, inventory, online ordering, scheduling and accounting software.
Restaurant shorthand for an item that is sold out or pulled from the menu — "86 the salmon" means stop selling it.
The kitchen and production side of a restaurant — line cooks, prep, dish, and the operations the guest never sees.
Total sales divided by the number of checks or covers — the typical amount a guest or party spends per visit.
A completed sale given to the guest at no charge — short for "complimentary" — used for service recovery or promotions.
The number of guests served in a given period — one cover equals one diner, not one table or one check.
The global chip-card payment standard (Europay, Mastercard, Visa) that shifts counterfeit-fraud liability to whoever accepts a non-chip payment.
The cost of ingredients as a share of food sales — a core profitability metric most restaurants manage to the 28-35% range.
The guest-facing side of a restaurant — hosts, servers, bartenders, and the dining room where service happens.
A gratuity is a voluntary tip owned by staff; a service charge is a mandatory fee the restaurant collects and controls, with different tax and payroll treatment.
A digital screen in the kitchen that replaces paper tickets and routes incoming orders to the line, expo, and prep stations.
Total labor cost as a share of sales — the other half of prime cost, commonly managed in the 30-35% range.
Analyzing each menu item by its popularity and its profit margin to decide what to promote, reprice, redesign, or cut.
The target on-hand quantity of an ingredient or supply — the amount you keep in stock to get through to the next delivery.
The terminal and software where a restaurant rings up orders, sends them to the kitchen, takes payment, and records every sale.
Cost of goods sold plus total labor — the single number operators watch most, typically run near 60% of sales.
A sales report showing how many of each menu item sold over a period — the breakdown of what guests actually ordered.
Pricing out a dish by its ingredients — each ingredient tied to a purchased SKU and its cost — to know the true cost of every plate.
How many times a table is reseated with a new party during a service period — higher turns mean more covers from the same seats.
The method a guest uses to pay a check — cash, credit, gift card, or house account — and the act of applying that payment.
Delivery marketplaces like DoorDash, Uber Eats, and Grubhub that take orders and deliver for a commission — commonly 15-30% per order.
Combining some or all staff tips into a shared pool that is redistributed by a set formula, rather than each server keeping their own tips.
Cancelling an item or check before payment is finalized — the sale is removed rather than refunded.