The definitive guide to restaurant industry terminology – from A to Z.
A key performance metric in the restaurant industry.
A key metric used in the restaurant industry to measure customer satisfaction and overall reputation.
The area of a restaurant that is not visible to customers, where the essential operations take place.
The process of comparing a restaurant’s performance metrics against industry standards or best practices.
The revenue generated from selling alcoholic beverages in a restaurant, bar, or similar establishment.
The level of sales at which total revenue equals total costs, resulting in neither profit nor loss.
A casual dining establishment that primarily serves coffee, tea, and light snacks like pastries, sandwiches, and desserts.
A relaxed and comfortable atmosphere, moderate pricing, and a broad menu for customers.
A part of a larger group of restaurants with multiple locations, all operating under the same brand name and menu.
A unique dining experience offered by some restaurants where guests are seated at a special table.
A financial metric used by restaurants to measure the performance of locations that have been open for a significant period.
The number of customer visits to a restaurant location during a specific period.
A group of restaurants or businesses that are considered direct competitors to a particular restaurant or chain.
A secure payment method allowing customers to complete transactions without physical contact.
A modern dining concept that blends elements of casual dining with a focus on a healthier menu options.
The direct costs associated with producing the food and beverages that a restaurant sells to its customers.
A continuous process in which a restaurant collects, analyzes, and responds to customer feedback to improve.
Used to estimate the total revenue a restaurant can expect to earn from a customer over time.
The strategies, tools, and technologies used to manage and analyze the customer lifecycle.
Used to measure the average number of times a table is occupied during a specific period.
The process of collecting, analyzing, and interpreting data to gain insights.
The total revenue generated from orders that are placed by customers and delivered to their location.
A geographic region defined that represents a specific market on consumers.
An electronic version of a restaurant’s menu that is displayed on digital devices such as tablets or digital screens.
The total revenue generated from customers who physically dine at a restaurant’s location.
The practices and policies that ensure a diverse workforce and inclusive environment.
The revenue generated from customers who purchase food and beverages without leaving their vehicles, using service lanes.
The emotional commitment and level of enthusiasm that employees have towards their work and their team.
A restaurant’s ability to keep its employees over time, reducing the rate of turnover.
The measures the percentage of employees who leave a restaurant over a specific period, typically a year.
A Restaurant falling between fast food and casual dining by offering higher-quality food in a quick-service format.
A full-service restaurant experience characterized by exceptional food quality, elegant ambiance, and professional service.
Measures the cost of ingredients used to prepare food relative to the revenue generated from selling those food items.
The total revenue generated from selling food items in a restaurant or food service establishment.
A business model where a restaurant owner grants a third party the rights to operate a restaurant under the brand name.
The areas of a restaurant that are accessible to customers and the staff responsible for interacting with them.
An establishment where customers are seated at a table, and their orders are taken and served by waitstaff.
Measures the proportion of revenue remaining after accounting for the cost of goods sold (COGS).
The number of times a customer returns to a restaurant within a specific period.
A metric used in the restaurant industry to measure how satisfied customers are with their overall dining experience.
The process of collecting, analyzing, and interpreting customer feedback and data.
A dining establishment that is owned and operated by an individual, a family, or a small group.
A brief overview that provides key insights and data about the current state of a specific industry.
A metric used to measure how often a restaurant’s inventory is sold and replaced over a specific period.
The level of contentment and fulfillment employees feel about their work in a restaurant setting.
Measurable values that help businesses, including restaurants, track their progress toward specific goals.
A metric used to measure the proportion of total sales that is spent on employee wages, benefits, and payroll taxes.
The adherence to federal, state, and local labor laws and regulations that govern employment practices.
A Limited Service Restaurant is a where customers typically order and pay for their food before it is prepared and served.
Used to design a menu that maximizes profitability by analyzing the popularity and profitability of each menu item.
The practice of providing nutritional information. This can include calorie counts, ingredient details, and more
A KPI measuring the percentage of revenue after all other expenses have been deducted.
Measures customer satisfaction.
Any dining experience where food is prepared by a restaurant but consumed outside of its physical location.
A restaurant experience where customers visit the physical location of the restaurant to enjoy their meals.
The process by which customers use the internet to place food and beverage orders from a restaurant.
The monitoring, influencing, and maintaining of a brands reputation across digital platforms.
Both are Key metrics that measure the avg. amount spent by customers during a visit.
A combination of hardware and software that manages transactions, tracks sales, and processes payments.
Te increase in the average amount a customer spends at a restaurant or food service establishment over a certain period.
A type of menu offered by restaurants where a multi-course meal is served for a set price.
Dining that often offers a limited menu of items that are prepared quickly and served with minimal service.
The patterns and variations in sales performance observed in different geographic areas.
A performance metric used to measure the revenue generated for each available seat.
Predicting future sales based on historical data, current market trends, and other relevant factors.
A metric for restaurants used to measure and compare sales performance across different periods, locations, or categories.
A metric for restaurants that measures the amount of revenue generated for every hour worked by an employee.
A metric used to measure the efficiency it fills its available seating capacity.
The analysis of how different categories or segments of a restaurant’s business are performing.
A key metric that measures the avg. amount of time for a table to be occupied cleared, and reset.
External companies that partner with restaurants to handle the logistics of delivering food to customers.
The overall revenue generated by a restaurant from all sales channels.
The number of customers who visit a restaurant within a specific period of time.
The examining and interpreting patterns in customer visits over time.
A metric used to measure and analyze the overall health of a restaurant’s workforce.
The strategic practice of optimizing pricing, inventory, and capacity to maximize revenue.