Restaurant Operations Glossary
Plain-English definitions of the operational metrics that actually matter — with industry-standard targets and operator-direct guidance for independent restaurants.
Cost & profit metrics
Prime cost
Food cost + labor cost as a percentage of sales. Target: 60–65% for full-service independents.
Read definition →Food cost percentage
Cost of food sold ÷ food sales × 100. Target: 28–32% (NRA 2024 median: 32.0%).
Read definition →Labor cost percentage
Total labor (wages + burden) ÷ sales × 100. Full-service NRA 2024 median: 36.5%; profitable operators ran 34.2%.
Read definition →Occupancy cost percentage
Rent + property tax + insurance + utilities ÷ sales × 100. NRA 2024 median: 5.7% full-service, 5.2% limited-service.
Read definition →Cost of goods sold (COGS)
Beginning inventory + purchases − ending inventory. The dollar value of food USED, not bought — distinct from purchases.
Read definition →Pour cost
Beverage cost ÷ beverage sales × 100. Targets: 18–24% liquor, 24–28% beer, 20–30% wine.
Read definition →Comp percentage
Comps ÷ total sales × 100. No industry-standard "right" number; the trend is what matters.
Read definition →Recipe & menu metrics
Yield factor
Edible portion ÷ as-purchased weight × 100. Typical: 5–10% loss on proteins, 10–20% on produce.
Read definition →Plate cost
Total ingredient cost per menu item, with yield-loss adjustments applied. The recipe-level number behind menu pricing.
Read definition →Contribution margin
Menu price − plate cost. The dollars each item contributes to fixed costs and profit. Core input to menu engineering.
Read definition →Average check
Total sales ÷ covers. Pre-tax operational version vs. all-in (with tax + tip) version — pick one and hold it.
Read definition →Capital & productivity
Break-even point
Fixed costs ÷ contribution margin %. The sales threshold every operator should know before signing a lease.
Read definition →Sales per labor hour (SPLH)
Sales ÷ labor hours. Productivity benchmark: $50–70/hr full-service casual; $80–120 fine dining; $30–45 QSR.
Read definition →Cover
A single paying guest — the standard unit of restaurant volume. A four-top equals four covers, not one ticket.
Read definition →Turn time
Average duration a table is occupied. Casual lunch: 35–50 min. Casual dinner: 60–90. Fine dining: 120–180.
Read definition →Kitchen vocabulary
Mise en place
Pre-service prep and station organization. Bourdain in Kitchen Confidential: "the religion of all good line cooks."
Read definition →Par level
Minimum stock to operate without running out before next delivery. Bar par = 1.5× weekend volume.
Read definition →Fire / All day
"Fire" = start cooking. "All day" = running total across active orders. The call-and-response that runs every kitchen line.
Read definition →86 (eighty-six)
Remove from availability — the kitchen ran out, item discontinued, or guest banned. Most-recognized restaurant term outside the industry.
Read definition →In the weeds
Overwhelmed during service. Bourdain canonical use throughout Kitchen Confidential. Synonyms: buried, slammed.
Read definition →FOH / BOH
Front of house (servers, hosts, bar) vs. back of house (kitchen, prep, dish). Different cultures, different metrics, different clocks.
Read definition →People & compliance
Tip credit
Wage provision allowing tipped employees to be paid below standard minimum if tips bring total comp up. Texas: $2.13/hr tipped minimum.
Read definition →Turnover rate
Departures ÷ avg headcount. BLS reports restaurant sector at ~75% annually. Cost per departure: $2K–5K hourly, $10K–25K management.
Read definition →These definitions are written by Ben Mouton, a 14-year independent restaurant operator. They reflect how operators actually use these metrics on a Monday morning, not how textbooks teach them.
For deep-dives on each topic, see the full articles library.