Average Check

A key performance metric in the restaurant industry.

Average Star Rating (ASR)

A key metric used in the restaurant industry to measure customer satisfaction and overall reputation.

Back of House (BOH)

The area of a restaurant that is not visible to customers, where the essential operations take place.

Benchmarking

The process of comparing a restaurant’s performance metrics against industry standards or best practices.

Beverage Alcohol Sales (BAS)

The revenue generated from selling alcoholic beverages in a restaurant, bar, or similar establishment.

Break-Even Point

The level of sales at which total revenue equals total costs, resulting in neither profit nor loss.

Cafe

A casual dining establishment that primarily serves coffee, tea, and light snacks like pastries, sandwiches, and desserts.

Casual Dining

A relaxed and comfortable atmosphere, moderate pricing, and a broad menu for customers.

Chain Restaurant

A part of a larger group of restaurants with multiple locations, all operating under the same brand name and menu.

Chef’s Table

A unique dining experience offered by some restaurants where guests are seated at a special table.

Comp Sales (Same-store sales)

A financial metric used by restaurants to measure the performance of locations that have been open for a significant period.

Comp Traffic

The number of customer visits to a restaurant location during a specific period.

Competitive Set

A group of restaurants or businesses that are considered direct competitors to a particular restaurant or chain.

Contactless Payment

A secure payment method allowing customers to complete transactions without physical contact.

Contemporary Casual

A modern dining concept that blends elements of casual dining with a focus on a healthier menu options.

Cost of Goods Sold (COGS)

The direct costs associated with producing the food and beverages that a restaurant sells to its customers.

Customer Feedback Loop

A continuous process in which a restaurant collects, analyzes, and responds to customer feedback to improve.

Customer Lifetime Value (CLV)

Used to estimate the total revenue a restaurant can expect to earn from a customer over time.

Customer Relationship Management (CRM)

The strategies, tools, and technologies used to manage and analyze the customer lifecycle.

Customer Turnover Rate

Used to measure the average number of times a table is occupied during a specific period.

Data Analytics

The process of collecting, analyzing, and interpreting data to gain insights.

Delivery Sales

The total revenue generated from orders that are placed by customers and delivered to their location.

Designated Market Area (or DMA)

A geographic region defined that represents a specific market on consumers.

Digital Menu

An electronic version of a restaurant’s menu that is displayed on digital devices such as tablets or digital screens.

Dine in Sales

The total revenue generated from customers who physically dine at a restaurant’s location.

Diversity and Inclusion

The practices and policies that ensure a diverse workforce and inclusive environment.

Drive Thru Sales

The revenue generated from customers who purchase food and beverages without leaving their vehicles, using service lanes.

Employee Engagement

The emotional commitment and level of enthusiasm that employees have towards their work and their team.

Employee Retention

A restaurant’s ability to keep its employees over time, reducing the rate of turnover.

Employee Turnover Rate

The measures the percentage of employees who leave a restaurant over a specific period, typically a year.

Fast Casual

A Restaurant falling between fast food and casual dining by offering higher-quality food in a quick-service format.

Fine Dining

A full-service restaurant experience characterized by exceptional food quality, elegant ambiance, and professional service.

Food Cost Percentage

Measures the cost of ingredients used to prepare food relative to the revenue generated from selling those food items.

Food Sales

The total revenue generated from selling food items in a restaurant or food service establishment.

Franchise

A business model where a restaurant owner grants a third party the rights to operate a restaurant under the brand name.

Front of House (FOH)

The areas of a restaurant that are accessible to customers and the staff responsible for interacting with them.

Full-Service Restaurant (FSR)

An establishment where customers are seated at a table, and their orders are taken and served by waitstaff.

Gross Profit Margin

Measures the proportion of revenue remaining after accounting for the cost of goods sold (COGS).

Guest Frequency

The number of times a customer returns to a restaurant within a specific period.

Guest Satisfaction (GSS)

A metric used in the restaurant industry to measure how satisfied customers are with their overall dining experience.

Guest Sentiment Analysis

The process of collecting, analyzing, and interpreting customer feedback and data.

Independent Restaurant

A dining establishment that is owned and operated by an individual, a family, or a small group.

Industry Snapshot

A brief overview that provides key insights and data about the current state of a specific industry.

Inventory Turnover Ratio

A metric used to measure how often a restaurant’s inventory is sold and replaced over a specific period.

Job Satisfaction

The level of contentment and fulfillment employees feel about their work in a restaurant setting.

Key Performance Indicators (KPIs)

Measurable values that help businesses, including restaurants, track their progress toward specific goals.

Labor Cost Percentage

A metric used to measure the proportion of total sales that is spent on employee wages, benefits, and payroll taxes.

Labor Law Compliance

The adherence to federal, state, and local labor laws and regulations that govern employment practices.

Limited Service Restaurant (LSR)

A Limited Service Restaurant is a where customers typically order and pay for their food before it is prepared and served.

Menu Engineering

Used to design a menu that maximizes profitability by analyzing the popularity and profitability of each menu item.

Menu Labeling

The practice of providing nutritional information. This can include calorie counts, ingredient details, and more

Net Profit Margin

A KPI measuring the percentage of revenue after all other expenses have been deducted.

Net Promoter Score (NPS)

Measures customer satisfaction.

Off-Premise Dining

Any dining experience where food is prepared by a restaurant but consumed outside of its physical location.

On-Premise Dining

A restaurant experience where customers visit the physical location of the restaurant to enjoy their meals.

Online Ordering

The process by which customers use the internet to place food and beverage orders from a restaurant.

Online Reputation Management (ORM)

The monitoring, influencing, and maintaining of a brands reputation across digital platforms.

Per Person Average (PPA)/Per Ticket Average (PTA)

Both are Key metrics that measure the avg. amount spent by customers during a visit.

Point of Sale System

A combination of hardware and software that manages transactions, tracks sales, and processes payments.

PPA/PTA Growth

Te increase in the average amount a customer spends at a restaurant or food service establishment over a certain period.

Prix Fixe

A type of menu offered by restaurants where a multi-course meal is served for a set price.

Quick-Service Restaurant (QSR)

Dining that often offers a limited menu of items that are prepared quickly and served with minimal service.

Regional Sales Trends

The patterns and variations in sales performance observed in different geographic areas.

Revenue Per Available Seat Hour (RevPASH)

A performance metric used to measure the revenue generated for each available seat.

Sales Forecasting

Predicting future sales based on historical data, current market trends, and other relevant factors.

Sales Index

A metric for restaurants used to measure and compare sales performance across different periods, locations, or categories.

Sales Per Labor Hour (SPLH)

A metric for restaurants that measures the amount of revenue generated for every hour worked by an employee.

Seat Utilization

A metric used to measure the efficiency it fills its available seating capacity.

Segment Performance

The analysis of how different categories or segments of a restaurant’s business are performing.

Table Turn Time

A key metric that measures the avg. amount of time for a table to be occupied cleared, and reset.

Third-Party Delivery Services

External companies that partner with restaurants to handle the logistics of delivering food to customers.

Total Sales

The overall revenue generated by a restaurant from all sales channels.

Traffic

The number of customers who visit a restaurant within a specific period of time.

Traffic Trend Analysis

The examining and interpreting patterns in customer visits over time.

Upselling

Workforce Index

A metric used to measure and analyze the overall health of a restaurant’s workforce.

Yield Management

The strategic practice of optimizing pricing, inventory, and capacity to maximize revenue.