Restaurant Lexicon

Average Order Value is the average value of an order, calculated as revenue divided by the number of orders.

Contribution margin is the amount left from an order after variable costs, which then contributes to covering fixed costs.

A frictionless checkout is an order completion with no unnecessary steps, waiting or distractions — the less friction, the higher the conversion.

Margin Reclamation is the deliberate recovery of contribution margin lost to delivery marketplaces, back onto your own direct channels.

The Marketplace Tax is the gap between a delivery marketplace's advertised commission and the true total cost of an order.