Restaurant Glossary

Restaurant Terminology...

ABCD AWARD - An award given to employees who go above and beyond in their work to
encourage them to excel in their work.

BACKORDERED - When you order a product the is not in stock and will be shipped at a later
date

BOGO - Buy one, get one free.

BOUNCE BACK COUPON - A coupon given to the customer after the sale,
The purpose is to get the customer to come back to redeem it within a certain time period. It is
important to save and track these coupons for future campaigns.

BREAK-EVEN POINT - A breakeven point is the minimum amount of sales that a restaurant
must achieve in order to cover all costs. The amount that is left would be considered the profit.

CASH-IN SHEET - A cash-in is used to account for all money during an employee's shift.

CASUAL DINING - A restaurant providing sit-down service in a causal, relaxed atmosphere.

Menu prices are moderate and dress is casual.

COMPANY CULTURE - The environment, effecting the decisions made in your restaurant
concerning how problems are dealt with and staff management.

COMPETITIVE ANALYSIS - Gathering information information about your competitors, the

services they offer, prices, coupons, special incentives for employees and/or customers, vendors,
etc., for the purpose of competing with them.

CORE MENU CONCEPT - The main type of menu you offer, having to do with your
restaurant concept.

Corrosion-resistant materials - surfaces that will maintain their original qualities when they
come in contact with cleaning solutions, foods, etc.

CORPORATION - Setting up an ownership that is separate from the owners.

Business owners do this to protect their personal non-business assets from lawsuits.

CORRECTIVE FEEDBACK - the process of letting employees know what the correct
procedures are in your business.

COST OF GOODS - The daily, weekly, monthly or yearly total dollar amount of all inventoried
items that have been used in the restaurant.
CROSS CONTAMINATION - Cross contamination occurs when bacteria, chemicals, etc. from
one product are allowed come into contact with another product. An example would be storing
vegetables under a meat product in your cooler and the juices dripping onto the product below.

CURB SIGN - A sign placed outside your business, allowing you to place specials, menus or
artwork.

DAY-PART - The menu time period when menu items are served in your restaurant, such as the
breakfast menu, lunch menu and dinner menu.

DEMOGRAPHIC SURVEYS - Conducting a survey to determine consumer habits according

to age, gender, income, race, etc. that will help you decide if a restaurant or menu item will be
successful in your area.

Dram shop laws - laws concerning establishments serving alcoholic beverages to the public.

DRINK COST - Daily, weekly, monthly, yearly dollar cost total of of all items pertaining to the
cost of drink sales inventoried in your restaurant.

Dual-Branding - when two or more brand name operations are located in the same retail space.

FSI - Direct/free standing inserts are advertisements or messages that are mailed to postal
patrons or inserted in newspapers.

EGRESS - having to do with how easy it is for your customers to exit your restaurant parking
lot.

FEASIBILITY STUDY - A study done to see if your concept will work.

FIFO - Rotating and using products according to date of expiration or when they were received
(always date all products when you receive them).

FIXED COSTS - The ongoing permanent costs that do not vary, such as rent,
leases and loans.

FOOD CONTACT SURFACES - -All surfaces that come in contact with food.

FRANCHISING - The decision to market your business, services or goods for a fee or a per-
cent of the gross sales. Restaurants can draw up a franchise agreement allowing others to use
their name, advertising, expertise and concept for a fee.

FRANCHISEE - Someone who owns a franchise.

FRONT OF THE HOUSE - The part of your restaurant where your customer goes. These areas
can be, the entry area, the public bathrooms, the dining area and conference room areas.
FULL SERVICE - full service restaurant is one where a wait person is there to see to the
customer's every need

GOODWILL - The value of your business/business assets or the positive reputation/feelings

you have built up with your customers.

HACCP -( Hazard analysis control point system) It helps ensure food handling errors do not
occur and that safe food is served to your customers.

HOLD TIME - The time you are allowed to hold an item before it begins to break down.

HQSC - Hospitality, quality, service, and cleanliness.

HVAC - Heating, Ventilation and Air Conditioning

IMAGE ADVERTISING - Determining the good qualities of your product and advertising that
good quality.

INGRESS - having to do with how easy it is for your customers can enter your restaurant
parking area.

Kitchenware -multi use utensils other than tableware.

LIMITED LIABILITY COMPANY (LLC) - according to wikipedia.org is a legal form of

business company in the United States offering limited liability to its owners.

LTO - Stands for "A limited time offer." Used in advertising letting the customer know that the
special sale, offer or product will only be offered for a limited time.

MARGIN MARKUP -Has to do with the price the manufacturer charges the distributor and the
amount he is charging you. This allows you to negotiate prices with your distributor.

MARKET PENETRATION - Having to do with growing your business to get more of the
market share.

MARKET SATURATION - Having to do with how will your product will do in a market in
regards with how much the market is already saturated with like products.

Meat Jobber - A distributor or wholesaler that sales to restaurants.

MENU MIX - Determine how much each product receives from the gross sales in your
restaurant.

MYSTERY SHOPPER - Someone who is asked to visit a restaurant and evaluate its
performance
NET SALES - This is the actual dollar amount of all items sold, excluding sales tax.

OPEN-DOOR POLICY - The policy in your restaurant that lets employees know you are
always free to talk about their concerns.

OUTSOURCING - Paying for a job done by someone who is not under your employment.

PAID-OUTS - Money taken from the register to purchase items with cash for the restaurant.
Always keep a record of each transaction and a receipt.

PARTNERSHIP - When two or more people go into business together and share all liability,
assets and profits.

PASS STATION - Refers to an area of the restaurant where food is passed from the kitchen to
with wait staff.

PERCEIVED VALUE - Your customer's value that they attach to your product or service.

POINT OF DISTINCTION - The point of where your restaurant differs from all others.

POINT OF PURCHASE - This usually refers to the place where your customers pay for their
items.

PRESS RELEASE - The primary tool used to tell your story. It is a brief, concise story that is
submitted to the media for possible publication. It should include the five W's -who, what,
where, when and why.

PRIME INTEREST RATE - Banks have an interest rate reserved for their most credit-worthy
customers.

PRODUCTIVITY - A measure of scheduling efficiency.

QUICK SERVICE - QSR-quick service restaurant, usually considered a fast food restaurant.

REPRIMAND - A notice or action given to employees who disregard your restaurant policies.
All reprimands should be documented and kept in the employee files.

SAFE MATERIALS- referring to materials that will not negatively impact a food product.

SANITIZING - A cleaning process to remove anything unclean.

SINGLE SERVICE ARTICLES - Disposable tableware, carry out utensils designed for one-
time or one person use.

SOLE PROPRIETORSHIP - A business that is owned and operated by one person.

STAIR-STEPPING - Scheduling employees at different intervals with to improve productivity.

STREETFIGHTING - Marketing your store in your actual neighborhood (distributing flyers on

car windshields, donating food to businesses, working with community based organizations, etc.

TABLE TURNS - How many times a table in restaurant is used to serve a new customer.

Tableware - eating, drinking and serving utensils for the table.

TARGET MARKET ANALYSIS - Determining who your customers are and designing
marketing towards their profile.

TRADE AREA - The area surrounding your business, which provides your major customer
base.

TRAFFIC COUNTS - Surveys of actual foot traffic or motor traffic passing your restaurant.

TRIPLE-NET LEASE - A lease requiring the person leasing to pay all expenses (utilities,
taxes, insurance, maintenance, etc.) in addition to the rent.

WASTE FACTOR - Adding a percentage to food costs to account for food waste or loss.

YIELD - The total amount that is usable in a product after unusable parts are removed.

UTENSILE - tableware and kitchenware, which is used to cook or eat food.

VARIABLE COSTS - The costs in your business that do not remain the same such as cost of
goods.