Term | Pronunciation | Definition | Context/Example |
AUV | ay-yoo-vee | Average unit volume: the total revenue generated by one location over a set period | "Our AUV is above industry standard." |
BEO | bee-ee-oh | Banquet event order: a detailed document outlining all requirements for a private event | "Check the BEO for dietary restrictions and timing." |
Break-even | brayk-ee-ven | The point at which total revenue equals total costs, resulting in neither profit nor loss | "We hit break-even at 80 covers on a weeknight." |
Budget | buhj-it | A financial plan that sets expected revenue and cost targets for a period | "We are tracking closely to budget this quarter." |
Budgeted vs. actual | buhj-it-ed vs ak-choo-uhl | A comparison of planned financial targets against real performance figures | "We're over budget on labour this week." |
COGS | see-oh-jee-es | Cost of goods sold: the total direct cost of all ingredients and products used | "Our COGS percentage is too high this month." |
Comp percentage | komp per-sen-tij | The value of complimentary items given is expressed as a percentage of total sales | "Keep comp percentage under 2%." |
Controllable costs | kon-trohl-ah-buhl kosts | Operating expenses that management can directly influence and reduce | "Focus on controllable costs this quarter." |
Cover count | kuhv-er kownt | The total number of individual guests served during a service period | "What was our cover count last night?" |
Covers per labour hour | kuhv-erz per lay-ber owr | A productivity metric measuring how many guests are served per hour of labour paid | "We need to improve covers per labour hour." |
Daily sales report | day-lee saylz ree-port | An end-of-day summary of total revenue across all categories | "Pull the daily sales report before closing." |
Depreciation | dih-pree-shee-ay-shun | The gradual reduction in the value of equipment and assets over time | "Factor in depreciation when calculating true overhead." |
EBITDA | ee-bit-dah | Earnings before interest, taxes, depreciation, and amortisation; a measure of core profitability | "Our EBITDA margin improved this quarter." |
Fixed costs | fikst kosts | Expenses that remain constant regardless of sales volume, such as rent and insurance | "Rent is our biggest fixed cost." |
Food cost | food kost | The cost of ingredients expressed as a percentage of food sales revenue | "Food cost target is 28 to 32%." |
Gross profit | grohs prof-it | Total revenue minus the cost of goods sold, before operating expenses are deducted | "Our gross profit this month is strong." |
Inventory | in-ven-tor-ee | A complete count and valuation of all food, beverage, and supply stock on hand | "Complete a full inventory every Sunday night." |
Inventory turnover | in-ven-tor-ee turn-oh-ver | The rate at which inventory is used and replaced over a given period | "Our inventory turnover is 8 times per year." |
KPI | kay-pee-eye | Key performance indicator: a measurable metric used to evaluate operational success | "Cover count and check average are our primary KPIs." |
Labour cost | lay-ber kost | Total employee wages and related costs expressed as a percentage of sales revenue | "Labour cost should be kept under 30%." |
Margin | mar-jin | The percentage of revenue remaining after the cost of a product is deducted | "Our margin on cocktails is 75%." |
Menu engineering | men-yoo en-jih-neer-ing | A strategic analysis of menu item profitability and popularity to guide pricing and promotion | "Menu engineering shows which items to promote and which to remove." |
Net profit | net prof-it | The amount of revenue remaining after all costs and expenses have been deducted | "Net profit for the month was 8% of total revenue." |
Occupancy rate | ok-yoo-pan-see rayt | The percentage of available seats filled during a given service period | "Our Saturday occupancy rate is consistently above 90%." |
Operating costs | op-er-ay-ting costs | The total day-to-day expenses required to run the restaurant | "Review all operating costs monthly." |
Overhead | oh-ver-hed | Indirect operating expenses not tied directly to production, such as utilities and insurance | "Overhead includes utilities, insurance, and admin costs." |
P&L | pee and el | Profit and loss statement: a financial report summarising revenue, costs, and net profit | "Review the P&L before the meeting." |
Par level | par lev-uhl | The minimum stock quantity that must be maintained for each product at all times | "We are below par level on olive oil — order more." |
Pour cost | por kost | The cost of liquor and beverage products expressed as a percentage of bar sales revenue | "Pour cost should be around 20%." |
Prime cost | prym kost | The combined total of food cost and labour cost; the most closely monitored metric in restaurant finance | "Keep prime cost under 60% of total sales." |
Recipe costing | res-ih-pee kost-ing | The process of calculating the exact ingredient cost of a dish to determine its selling price and margin | "Update recipe costing before the new menu launches." |
RevPASH | rev-pash | Revenue per available seat hour, a metric measuring how efficiently seating capacity generates revenue | "Focus on RevPASH during slow periods." |
Same store sales | saym stor saylz | A year-over-year revenue comparison for the same location is used to measure organic growth | "Same store sales are up 8% on last year." |
Shrinkage | shring-kij | The loss of inventory through theft, spillage, spoilage, or unrecorded waste | "Shrinkage is affecting our food cost — audit the walk-in." |
Table turn | tay-buhl turn | The number of times a table is occupied and turned over during a single service period | "We need better table turns on weekends." |
Ticket time | tik-et tym | The time elapsed from when an order is placed to when it is completed and ready | "Average ticket time is 12 minutes." |
Tip credit | tip kred-it | A legal provision allowing employers to count employee tips toward the minimum wage requirement | "Understand tip credit laws in your country — they vary internationally." |
Variable costs | vair-ee-ah-buhl kosts | Expenses that increase or decrease in direct proportion to sales volume | "Food and beverage costs are variable costs." |
Variance | vair-ee-ens | The difference between expected and actual figures for cost, usage, or revenue | "There's a variance in our liquor inventory — investigate." |
Waste log | wayst lawg | A written record of all discarded food and beverage used to accurately track food cost | "Log all waste for accurate food cost reporting." |
YTD | why-tee-dee | Year-to-date: a cumulative total of a metric from the start of the financial year to the present | "Our YTD sales are up 15% on the same period last year." |