Restaurant Lexicon
Restaurant Lexicon
Plain definitions of the terms restaurant operators actually use — margins and metrics, service models, payments, food safety and the paperwork around them. Every entry links to the terms it depends on.
Filters the list below as you type.
12 terms
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Twenty-one areas of running a restaurant.
All terms A–Z
12 terms
Every entry in the Lexicon, alphabetically.
A
C
- Cart AbandonmentOrderingCart abandonment happens when a guest adds items to a cart but leaves the ordering process before payment.
- Contribution MarginFinanceContribution margin is the amount left from an order after variable costs, which then contributes to covering fixed costs.
- Controlled CapacityOperationsControlled Capacity means accepting and managing orders according to the real capacity of the kitchen and delivery operation, so promises can still be kept at peak times.
D
- Direct Guest RelationshipMarketingA direct guest relationship exists when a restaurant enables orders and repeat orders through its own channel, rather than giving the connection to a marketplace.
- Direct-Channel PrincipleMarketingThe Direct-Channel Principle means making a restaurant’s own ordering page the preferred route for known guests, where the order, margin and communication remain with the restaurant.
F
- Food Cost PercentageFinanceThe share of food revenue consumed by the ingredients sold, calculated as food cost divided by food revenue. The standard measure of kitchen margin.
- Frictionless CheckoutOrderingA frictionless checkout is an order completion with no unnecessary steps, waiting or distractions — the less friction, the higher the conversion.