Restaurant glossary

Plain-language definitions of the restaurant and restaurant-technology terms that matter.

COGS (Cost of Goods Sold)
The total cost of all food and beverage ingredients consumed to generate a restaurant's revenue during a given period.
Food Cost Percentage
The share of food revenue consumed by ingredient costs, calculated as Cost of Goods Sold divided by food sales.
Menu Engineering
A data-driven method for classifying every menu item by its profitability and sales volume, then redesigning the menu to push customers toward high-margin dishes.
Table Turnover
The number of times a table is seated and cleared during a given service period.