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Topic · 13 guides

Operations & inventory

Counts, par levels, waste, yield tests — the weekly rituals that make the numbers true.

Guides in this topic

Terms these guides define

Edible portion vs. as-purchased
As purchased (AP) describes food in the form you buy it; edible portion (EP) describes the usable amount after a specified preparation step.
Yield percentage
Usable ingredient weight divided by starting weight, expressed as a percentage for a specified preparation step.
Sub-recipe
A recipe used as an ingredient in other recipes — stock, sauce, dough, compound butter.
Waste percentage
The share of purchased food that is thrown away rather than sold — spoilage, overproduction, errors and returns.
Spoilage
Product lost to age, temperature or damage before it could be sold.
Voids
Items removed from a check — some before the food was made, some after, and only the difference matters for cost.
Comps
Food or drink given away — recovery, staff meals, promotions — real cost with no matching revenue.
Par level
The quantity of an item you want on hand at the start of each order cycle — enough to cover demand plus a safety buffer.
Usage rate
How much of an item you consume per day or per cover — the input behind every par level and order.
Prep list
The day's production plan — what to make, how much, and in what order — derived from par levels and a covers forecast.
Portion control
Keeping served portions equal to specced portions — the difference between the food cost you calculated and the one you get.
Cost per serving
The cost of one served unit of a batch item — a bowl of soup, a slice of pie, an ounce of sauce.
COGS (cost of goods sold)
The cost of the food and beverage actually consumed in a period, computed from inventory rather than from purchases.
Shrinkage
Inventory that disappears without a corresponding sale — waste, spoilage, error and theft combined.
Inventory turnover
How many times you sell through your average inventory in a period — a direct measure of how much cash is sitting on shelves.
Days on hand
How many days of normal usage your current stock represents.
FIFO (first in, first out)
Using oldest stock first — the rotation discipline that prevents most spoilage.
Plate cost
The total ingredient cost of one served portion, garnish and sides included.
Menu mix (PMIX)
The share of total sales each menu item represents — the weights behind every menu-level average.