Category
Finance
Restaurant terms in Finance, each defined in plain language.
5 terms
- Contribution MarginMetricContribution margin is the amount left from an order after variable costs, which then contributes to covering fixed costs.
- Food Cost PercentageMetricThe share of food revenue consumed by the ingredients sold, calculated as food cost divided by food revenue. The standard measure of kitchen margin.
- Margin ReclamationConceptMargin Reclamation is the deliberate recovery of contribution margin lost to delivery marketplaces, back onto your own direct channels.
- The Marketplace TaxConceptThe Marketplace Tax is the gap between a delivery marketplace's advertised commission and the true total cost of an order.
- Variable CostsAccounting termVariable costs are costs created by each individual order, such as food cost, packaging, payment fees or marketplace commissions.