50+ Terms

Restaurant Industry Glossary

Essential terminology every restaurant owner and staff member should know. From POS to BOH, we've got you covered.

8

86

(Eighty-Six)Kitchen

Industry term meaning an item is out of stock or no longer available. "86 the salmon" means salmon is unavailable.

A

API

(Application Programming Interface)POS & Technology

Technology that allows different software systems (like POS and delivery apps) to communicate and share data.

All Day

Kitchen

Total count of a particular item needed. "3 steaks all day" means 3 total steaks are needed across all current orders.

ATV

(Average Transaction Value)Finance

Average amount spent per order or per guest, calculated by dividing total revenue by number of transactions.

a la Carte

Food & Beverage

Menu where each dish is priced and ordered separately, as opposed to prix fixe or thali.

Add-on

Food & Beverage

Extra item added to a base dish, like extra cheese, toppings, or sides.

B

BOH

(Back of House)Kitchen

Areas of the restaurant not visible to guests, including kitchen, storage, and staff areas.

Break-Even Point

Finance

Sales volume at which total revenue equals total costs, after which the restaurant becomes profitable.

C

Cloud POS

(Cloud-Based Point of Sale)POS & Technology

POS system that stores data on remote servers, accessible from anywhere with internet connection.

Covers

Service

Number of guests served. "We did 200 covers tonight" means 200 guests were served.

Campers

Service

Guests who linger at their table long after finishing their meal, reducing table turns.

Comp

(Complimentary)Service

Item given to a guest for free, often to apologize for an issue or as a VIP gesture.

COGs

(Cost of Goods Sold)Finance

Direct costs of producing food and beverages sold, including ingredients but not labor or overhead.

Cross-Training

Management

Training employees to perform multiple roles, increasing flexibility in scheduling.

Combo

(Combination Meal)Food & Beverage

Bundled menu items sold at a reduced price compared to ordering individually.

E

EMV

(Europay, Mastercard, Visa)POS & Technology

Chip-based card payment standard that provides better security than magnetic stripe cards.

Expo

(Expeditor)Kitchen

Person who coordinates orders between kitchen and servers, ensuring dishes are complete and properly presented.

F

Fire

Kitchen

Kitchen command to begin cooking a dish. "Fire table 5" means start preparing that table's order.

FIFO

(First In, First Out)Kitchen

Inventory management method where oldest stock is used first to minimize waste and ensure freshness.

FOH

(Front of House)Service

Guest-facing areas including dining room, bar, host stand, and any area customers can access.

Food Cost

Finance

Total cost of ingredients used to prepare menu items, typically expressed as a percentage of sales.

F&B

(Food and Beverage)Management

Department or category encompassing all food and drink operations in a hospitality business.

FSSAI

(Food Safety and Standards Authority of India)Management

Regulatory body governing food safety in India. FSSAI license is mandatory for food businesses.

G

Gross Margin

Finance

Revenue minus cost of goods sold (food cost), expressed as a percentage.

GM

(General Manager)Management

Senior manager responsible for overall restaurant operations, staff, and financial performance.

H

HACCP

(Hazard Analysis Critical Control Points)Management

Food safety management system identifying and controlling biological, chemical, and physical hazards.

Happy Hour

Food & Beverage

Promotional period offering discounted drinks and appetizers, typically during slow hours.

K

KOT

(Kitchen Order Ticket)POS & Technology

A printed or digital ticket sent to the kitchen with order details including items, modifiers, and table number.

KDS

(Kitchen Display System)POS & Technology

Digital screens in the kitchen that show orders in real-time, replacing paper KOTs for better efficiency.

L

Labor Cost

Finance

Total employee compensation including wages, benefits, and payroll taxes, typically 25-35% of revenue.

LTO

(Limited Time Offer)Food & Beverage

Temporary menu item or promotion available for a short period to drive interest.

M

Mise en Place

Kitchen

French term meaning "everything in its place." Refers to preparing and organizing ingredients before cooking begins.

Modifier

Food & Beverage

Special instruction or customization for a menu item, like "no onions" or "extra spicy."

N

NFC

(Near Field Communication)POS & Technology

Technology enabling contactless payments via tap-to-pay cards or mobile wallets like Google Pay and Apple Pay.

O

On the Fly

Kitchen

Urgent request to prepare something immediately, often to fix an error or accommodate a rush request.

P

POS

(Point of Sale)POS & Technology

The system used to process customer transactions, manage orders, and track sales in a restaurant.

Pickup

Kitchen

Notification that a dish is ready to be taken to the table.

Prime Cost

Finance

Combined food cost and labor cost - the two largest expenses for most restaurants.

P&L

(Profit and Loss Statement)Finance

Financial statement showing revenues, costs, and expenses over a specific period.

Par Level

Finance

Minimum amount of inventory that should be maintained, triggering reorder when reached.

Pre-Shift

Management

Brief team meeting before service begins to discuss specials, 86 items, and VIP reservations.

Prix Fixe

Food & Beverage

Set menu with predetermined courses at a fixed price, common in fine dining.

Q

QR Ordering

(QR Code Ordering)POS & Technology

Contactless ordering system where customers scan a QR code to view the menu and place orders from their phones.

R

RevPASH

(Revenue Per Available Seat Hour)Finance

Metric measuring revenue generated per seat during operating hours, used to optimize capacity.

S

Split Check

Service

Dividing a single table's bill into multiple payments, by person or custom amounts.

SOP

(Standard Operating Procedure)Management

Documented procedures for consistent execution of tasks like food prep, cleaning, or service.

Shift Lead

Management

Employee responsible for overseeing operations during a specific shift when managers aren't present.

T

Ticket Time

Kitchen

Time elapsed from when an order is placed until it's served to the guest.

Turn

(Table Turn)Service

One complete cycle of a table being seated, served, and cleared. Higher turns mean more revenue.

Two-Top

Service

A table that seats two guests. Similarly, four-top (4), six-top (6), etc.

Thali

Food & Beverage

Indian meal format serving multiple dishes in small portions on a single platter, often unlimited.

U

Upsell

Food & Beverage

Suggesting higher-priced items or add-ons to increase order value.

V

VIP

(Very Important Person)Service

High-priority guest who may receive special attention, complimentary items, or priority seating.

Void

Service

Canceling an item from an order before it's prepared, removing it from the bill.

W

Walk-in

Service

Guest who arrives without a reservation.

Wait List

Service

List of guests waiting for an available table when the restaurant is at capacity.

Ready to Put Your Knowledge to Work?

Try DineOpen's modern POS system built with all these concepts in mind.

Start Free Trial →