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Topic · 6 guides

By restaurant type

The cost structure, the traps and the numbers that matter — for pizzerias, cafés, food trucks, bars and the rest.

Guides in this topic

Terms these guides define

86
Kitchen shorthand for an item that is no longer available for the rest of service.
Pour cost
Food cost percentage for the bar — beverage cost divided by beverage sales.
Free pour vs. jigger
Pouring by eye versus by measure — a difference that shows up directly in pour cost.
Recipe yield
How many finished portions a recipe actually produces, measured rather than assumed.
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.
Menu mix (PMIX)
The share of total sales each menu item represents — the weights behind every menu-level average.
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.
Average check
Total sales divided by covers — the single most leveraged number in a restaurant's revenue line.
Covers
The number of guests served in a period — the denominator behind average check, labour per cover and cost per cover.
Break-even point
The sales volume at which total revenue exactly covers total cost — the number below which you are paying to open.
Fixed vs. variable cost
Fixed costs don't move with sales; variable costs do. Most restaurant labour is neither, and that's where planning goes wrong.
Contribution margin
The dollars a dish contributes to overhead and profit after its ingredient cost — menu price minus plate cost.
Portion control
Keeping served portions equal to specced portions — the difference between the food cost you calculated and the one you get.
Prime cost
Total cost of goods sold plus total labor cost — the two numbers that decide whether a restaurant survives.
Third-party commission
The percentage a delivery marketplace takes from each order — DoorDash's and Uber Eats' published delivery plans run 15–30% — charged on the order subtotal.