Restaurant
glossary.
Forty terms every operator should know. Plain English. No fluff.
Prime Cost
Sum of food cost + labor cost as a percentage of revenue. Industry target: 55-65%. Above 65% is bleeding; below 55% is rare.
Food Cost %
Cost of goods sold for food, divided by food revenue. Target varies by concept (28-35% typical for full service).
Labor Cost %
Total labor (wages + benefits + taxes) divided by revenue. Target 25-35% depending on service style.
COGS
Cost of Goods Sold - what you paid for the food and beverage you actually sold (not what you purchased).
Cover
One seated guest. "200 covers" = 200 guests served.
Daypart
A time-segment of service: breakfast, lunch, dinner, late-night.
86
To remove an item from availability. "86 the salmon" = we are out.
Walk-in
A guest with no reservation; also the large refrigerated room in the kitchen.
Comp
A complimentary item or check given to fix a guest issue.
Spillage
Wasted product (broken bottle, spoiled prep, dropped plate).
Variance
Difference between expected and actual COGS - signals theft, waste, or pricing error.
KDS
Kitchen Display System - the screen that shows incoming orders in the kitchen.
FOH / BOH
Front of House (dining room) / Back of House (kitchen).
GM
General Manager - runs day-to-day operations.
Tip Pool
Aggregated tips shared per agreed split among service staff.
86 List
The running list of items currently unavailable that night.
Pre-shift
The meeting before service where the team reviews specials, VIPs, allergies.
Walk-up
A reservation made by a guest arriving without one.
ROP / Par
Reorder Point / Par level - inventory minimum that triggers ordering.
Two-top, Four-top
Table sized for two or four guests.
RevPASH
Revenue Per Available Seat Hour. Top-line throughput metric. Calculated as total revenue divided by (seats x hours of service).
Table Turn
Number of times one table is seated during a service. 1.8-2.5 turns is healthy for dinner; 3+ for quick-service.
Fire Course
Signal to the kitchen to start cooking the next course. "Fire mains for table 12."
Side Work
Tasks staff perform beyond serving guests: polishing glasses, folding napkins, restocking stations.
Soft Open
Quiet pre-launch service with limited invites to test the system before public open.
BTG (By-the-Glass)
Wine sold per glass rather than by bottle. Typically marked up 4-5x cost.
Pour Cost
Beverage cost as a percentage of beverage revenue. Target 18-22% for full-service.
Corkage
Fee charged when guests bring their own wine. NYC typical $25-60 per bottle.
Sous Chef
Second in command in the kitchen. Runs the line during service when the chef is not present.
Expediter (Expo)
The person who calls tickets, controls plating, and communicates between FOH and BOH during service.
Garde Manger
Cold-station chef. Handles salads, charcuterie, and cold appetizers.
Mise en Place
French for "everything in its place". Pre-service prep and organization at each station.
Theoretical vs Actual
Theoretical food cost (what recipes say it should be) vs actual (what the books show). The gap is your variance.
Depletion
Inventory used during a period. Calculated as Beginning Inventory + Purchases - Ending Inventory.
Shrink
Inventory lost without sale: theft, waste, spoilage. Tracked as a percentage of cost.
Yield %
Usable product after trim. 70% yield on a tenderloin means 30% goes to trim and bone.
TIPS Certification
Training for Intervention Procedures - alcohol service certification required for bar staff in most US jurisdictions.
ServSafe
National food handler safety certification. Required for kitchen managers in most US jurisdictions.
Allergen 9
The FDA's nine major food allergens that must be disclosed: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soy, sesame.
No-show
A reservation that never arrives. Tracked to adjust deposit and overbooking policy.