GLOSSARY

A few Restaurant Industry terms you must know

Find concise explanations of key terms used in the dynamic world of dining.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
A La Carte

A dining option where customers can order individual dishes from a menu, rather than a set meal or course-based service.

Allergen Management

A critical component of restaurant management involving the identification, control, and communication of allergens to ensure customer safety and compliance with health regulations.

Automated Ordering System

A technological solution that enables customers to place orders directly via digital platforms, streamlining the ordering process, reducing errors, and enhancing operational efficiency in restaurants.

B
Back of House (BOH)

The operational area in a restaurant where food is prepared, cooked, and plated, typically including the kitchen and staff areas, not visible to customers.

Beverage Program

A strategic framework for selecting, managing, and promoting a restaurant's beverage offerings to enhance customer experience, maximize profits, and ensure operational efficiency.

Brand Standard Compliance

Ensuring adherence to a restaurant's established guidelines and protocols to maintain consistency, quality, and customer satisfaction across all locations and touchpoints.

Buffet

A self-service dining format where customers serve themselves from a variety of dishes set out on a table or series of tables.

C
Carry-Out

A service option where customers order food in advance and pick it up from the restaurant to consume elsewhere, often packaged for convenience and transport.

Catch Weight

Catch weight, also known as variable weight, refers to the precise measurement of an individual food item at the time of purchase.

Catering

A service that prepares and delivers food for events, meetings, and private functions, often including setup and service options.

Cloud Kitchen

A delivery-only kitchen preparing food for online orders. Often hosts multiple brands for maximum efficiency.

Cloud POS

Cloud POS is a restaurant software accessed online, offering flexibility and remote access compared to traditional on-site systems.

Commissary Kitchen

A centralized cooking facility that provides production space and resources for multiple food service operations, often supporting food trucks, small restaurants, and caterers.

Contactless Dining

An innovative dining model that leverages technology to minimize physical contact between staff and guests, enhancing safety and efficiency through digital menus, ordering, and payment processes.

Contactless Payment

A payment method that allows customers to pay for their meals without physical contact, typically through digital wallets or contactless credit/debit cards.

Cost of Goods Sold (COGS)

A financial metric that represents the total cost of ingredients and food items that a restaurant consumes to generate its food sales.

Cross-Contamination

A critical food safety issue where harmful bacteria, allergens, or other microorganisms are unintentionally transferred from one substance or object to another, potentially causing health risks.

Customer Loyalty Program

A strategic initiative designed to reward repeat customers and encourage continued patronage, crucial for enhancing customer retention, building brand loyalty, and driving long-term profitability.

D
Daily Specials

A dynamic menu offering that features unique dishes available for a limited time, designed to attract customers, utilize seasonal ingredients, and boost restaurant sales and engagement.

Delivery Integration

A system that seamlessly combines various delivery platforms and services into a restaurant's operations to streamline the process of receiving, preparing, and delivering online orders.

Dietary Restrictions

Guidelines and practices for accommodating various dietary needs and preferences, crucial for enhancing customer satisfaction, ensuring inclusivity, and maintaining a competitive edge in the restaurant industry.

Digital Menu

An electronic version of a restaurant's menu, presented on digital screens or accessible via smartphones, enhancing guest interaction and operational efficiency.

Dining Room Manager

A key leadership role focused on managing the front-of-house operations to ensure a high-quality dining experience for customers.

E
Employee Scheduling

The process of organizing and assigning work shifts to restaurant staff to ensure optimal operation and service delivery.

Energy Efficiency in Kitchens

Strategies and practices aimed at reducing energy consumption in restaurant kitchens, crucial for lowering operational costs, enhancing sustainability, and improving overall efficiency.

Event Catering

A specialized service provided by restaurants to prepare and deliver food for events, crucial for expanding business opportunities, increasing revenue, and enhancing brand visibility.

Expiration Dating (X-dating)

A system used to monitor and manage the shelf life of perishable goods, ensuring food safety, reducing waste, and maintaining inventory quality in restaurants.

F
Fast Casual Restaurants

A hybrid dining model blending the convenience of fast food with the quality and atmosphere of casual dining, offering higher-quality food in a more upscale setting without full table service.

FIFO (First In, First Out)

A fundamental inventory management principle ensuring that the oldest stock (first in) is used before newer stock (first out), crucial for reducing waste and ensuring food quality.

Fine Dining Restaurants

Upscale dining establishments offering top-quality food, premium service, and a luxurious atmosphere, catering to guests looking for an exquisite dining experience.

Food Cost Percentage

A critical financial metric that measures the cost of ingredients relative to revenue, guiding pricing strategies, menu design, and overall profitability in restaurant operations.

Food Presentation

The art of arranging and decorating food to enhance its aesthetic appeal, crucial for creating a memorable dining experience, attracting customers, and differentiating a restaurant from its competitors.

Food Safety

A critical aspect of restaurant operations focusing on handling, preparing, and storing food in ways that prevent foodborne illness and ensure consumer health.

Food Truck Operations

The comprehensive management of a mobile food service business, crucial for ensuring efficiency, profitability, and compliance with regulations in the dynamic food truck industry.

Franchise Operations

A comprehensive approach to operating a restaurant as part of a franchise system, focusing on maintaining brand consistency, adhering to established protocols, and leveraging support and resources provided by the franchisor for successful business management.

Front of House (FOH)

The sector of a restaurant that guests directly interact with, including the dining area, bar, and reception, managed to ensure exceptional service, ambiance, and customer satisfaction.

G
Ghost Kitchen

A delivery-focused cooking facility that operates without a storefront or dine-in space, exclusively preparing food for online orders.

Gratuity

A voluntary payment made by customers, over and above the bill amount, as a token of appreciation for service, typically given to service staff.

Gross Profit

A key financial metric representing the revenue remaining after deducting the cost of goods sold (COGS), essential for assessing the restaurant's profitability and operational efficiency.

H
Happy Hour

A strategic promotional period offering discounted food and beverages to attract more customers, increase sales, and boost customer loyalty during typically slow business hours.

Health and Safety Compliance

Ensuring that all aspects of a restaurant's operations meet established health and safety standards to protect employees, customers, and the business itself from risks and legal liabilities.

High-Volume Catering

The specialized practice of preparing and delivering large quantities of food for events, requiring efficient operations, meticulous planning, and exceptional coordination to ensure quality and customer satisfaction.

I
Inventory Management

A critical operational process that involves tracking and managing the restaurant's stock of food, beverages, and supplies to optimize costs, reduce waste, and ensure a smooth service flow.

Inventory Turnover

A financial metric that measures how often a restaurant’s inventory is sold and replaced over a specific period, providing insights into the efficiency of inventory management and sales performance.

Inventory Turnover Ratio

A key financial ratio indicating how swiftly a restaurant's inventory is sold and replenished, showcasing effective inventory management and accurate demand forecasting.

K
Kitchen Display Systems

Digital systems enhancing kitchen operations by electronically displaying orders, boosting accuracy, efficiency, and communication between front-of-house and kitchen staff.

Kitchen Efficiency

The practice of optimizing kitchen operations to maximize productivity, minimize waste, and ensure timely and high-quality food preparation and service, crucial for maintaining a profitable and smoothly running restaurant.

Kitchen Prep Station

A designated area in a restaurant's kitchen where ingredients are prepared before cooking, crucial for ensuring efficiency, organization, and consistency in food preparation.

L
Line Cook

A line cook is a culinary professional responsible for preparing and cooking food according to the restaurant's recipes and standards, playing a crucial role in ensuring timely and consistent dish preparation.

Local Sourcing

The practice of procuring ingredients and products from local producers and suppliers, emphasizing freshness, sustainability, and community support, essential for enhancing food quality and promoting responsible business practices.

Loss Prevention

Loss prevention in restaurants involves strategies and practices designed to minimize financial loss due to theft, fraud, waste, and errors, ensuring the restaurant's profitability and operational efficiency.

M
Menu Customization

The practice of tailoring menu offerings to meet the diverse preferences and dietary needs of customers, enhancing the dining experience and increasing customer satisfaction and loyalty.

Menu Engineering

Menu engineering is the strategic process of designing and analyzing a restaurant's menu to maximize profitability by categorizing items based on popularity and profitability, optimizing pricing, and enhancing menu layout to influence customer choices.

Mobile Ordering

A system allowing customers to place orders via mobile devices, enhancing convenience, efficiency, and overall dining experience while increasing operational efficiency and revenue.

N
Net Profit

A financial metric representing the total earnings of a restaurant after all expenses, taxes, and costs are deducted from total revenue, crucial for assessing overall financial health and performance.

Nutritional Information Disclosure

The practice of providing detailed nutritional information for menu items, enabling customers to make informed dietary choices and promoting transparency and trust in the restaurant's offerings.

O
Online Delivery

A service model where restaurants offer food delivery to customers through online ordering platforms, integrating technology to expand reach and streamline operations.

Open API

A set of standardized protocols and tools that allow different software applications to communicate and integrate seamlessly, enabling enhanced functionality, flexibility, and innovation in restaurant management.

Operating Expenses

The recurring costs necessary to run a restaurant, excluding the cost of goods sold, crucial for budgeting, financial planning, and profitability analysis.

Operational Efficiency

Operational efficiency is a strategic restaurant management approach to maximize productivity, cut costs, and improve the dining experience through optimized processes, resources, and technology.

Outsourced Accounting Services

The practice of hiring external professionals to handle a restaurant's financial tasks, such as bookkeeping, payroll, and tax compliance, to improve accuracy, efficiency, and focus on core business operations.

Overhead Restaurant Rate

Overhead Restaurant Rate is a financial metric representing the total operating costs of a restaurant, excluding direct costs of goods sold, essential for pricing & profitability analysis.

P
Packaging for Sustainability

The practice of using eco-friendly packaging materials and methods to minimize environmental impact, enhance brand reputation, and meet customer demand for sustainable practices.

PAR Level

A systematic approach to managing restaurant inventory that ensures optimal stock levels for uninterrupted service without excessive surplus.

Pay At Table Technology

An innovative payment solution allowing customers to pay for their meals directly at the table using digital devices, enhancing convenience and efficiency.

Pay-at-the-Table

A system allowing customers to complete their payments directly at their table using portable devices, enhancing convenience, efficiency, and security in the dining experience.

Payment Methods

Diverse transaction options in restaurants, facilitating convenient, secure, and efficient customer payments for dining experiences.

Point of Sale Systems

Point of sale systems are software & hardware solutions that facilitate transactions and manage inventory in retail and hospitality sectors.

Private Dining

The practice of offering exclusive dining experiences in dedicated spaces for small groups, providing personalized service, customized menus, and a unique ambiance, essential for enhancing customer satisfaction and increasing revenue.

Q
QR Code Ordering

A contactless ordering system where customers scan QR codes to view menus, place orders, and make payments via their smartphones, enhancing convenience, efficiency, and safety in dining.

Quick Service Restaurants (QSRs)

Fast-food establishments prioritizing speed, convenience, and affordability, serving ready-to-eat foods via counter service, drive-thru, or delivery.

R
Recipe Management

A systematic approach to curating, standardizing, and maintaining the quality and consistency of dishes across a restaurant's operations.

Reservation System

A digital tool that allows customers to book tables in advance, manage reservations, and optimize seating arrangements, enhancing customer satisfaction and operational efficiency.

Restaurant Branding

The strategic process of creating a distinctive identity and image for a restaurant through its name, logo, design, and overall customer experience, essential for attracting target audiences, building loyalty, and standing out in a competitive market.

Restaurant Layout and Design

The deliberate planning and arrangement of physical space, decor, and functional elements within a restaurant to optimize guest experience, operational efficiency, and aesthetic appeal, crucial for creating a welcoming ambiance and maximizing profitability.

Revenue Management

The strategic practice of optimizing pricing, inventory, and availability to maximize revenue and profitability in a restaurant, crucial for adapting to demand fluctuations and enhancing financial performance.

S
Seasonal Menu Planning

The strategic process of designing and introducing menus that highlight seasonal ingredients, flavors, and culinary trends to attract customers, optimize ingredient freshness, and enhance dining experiences.

Shift Management

A system for scheduling and managing staff shifts to ensure optimal coverage, efficiency, and productivity, enhancing overall restaurant operations and employee satisfaction.

Social Media Marketing

The strategic use of social media platforms to promote a restaurant's brand, engage with customers, drive foot traffic, and increase online visibility, crucial for building a loyal customer base and enhancing digital presence.

Specialty Cuisine

The culinary focus and expertise on specific regional, ethnic, or thematic cuisines within a restaurant's menu offerings, designed to showcase authentic flavors, cultural traditions, and unique dining experiences.

Split Shift

A work schedule strategy in restaurant management, dividing employees' workdays into two distinct segments to cover peak service times efficiently.

Staff Uniforms

The deliberate selection and design of uniforms for restaurant staff to reflect brand identity, ensure professionalism, enhance guest experience, and promote team cohesion, crucial for creating a cohesive and professional dining environment.

Supplier Relationship Management

The strategic management of relationships with suppliers to ensure reliable, high-quality product sourcing, competitive pricing, and mutual benefit, crucial for maintaining supply chain efficiency and enhancing overall operational performance.

Sustainability Practices

The implementation of environmentally responsible practices and initiatives within restaurant operations to minimize environmental impact, promote resource efficiency, and meet societal expectations, crucial for long-term viability and community stewardship.

T
Table Reservation

A systematic process for guests to book tables in advance, enhancing dining experience planning and restaurant operations efficiency.

Table Service

A dining experience where guests are seated and served at their table by staff, highlighting hospitality, menu knowledge, and personalized service.

Table Turnover Rate

A metric that measures how quickly tables are cleared and reset for new customers, crucial for maximizing seating efficiency, revenue, and customer satisfaction.

Tableside Ordering

A service model where waitstaff take orders, process payments, and provide customer service directly at the table, enhancing efficiency, accuracy, and customer satisfaction.

Takeaway Packaging

The selection and use of environmentally responsible packaging solutions for food takeaway and delivery services to minimize environmental impact, ensure food safety, and enhance customer satisfaction, crucial for supporting sustainable practices in the food service industry.

Takeout