Restaurant Management Glossary
Plain-English definitions of the POS, kitchen, and restaurant management terms owners and managers run into most often.
- POS (Point of Sale)
- POS stands for Point of Sale - the system where a sale is completed: taking orders, processing payment, and printing or sending receipts. In restaurants, the POS is usually the hub that all other systems (kitchen, inventory, reporting) connect to. See our POS system
- POS vs. Cash Register
- A cash register only records transactions and stores cash - it can't track inventory, run reports, or connect to a kitchen or online orders. A POS system does everything a cash register does plus real-time sales reporting, staff permissions, inventory tracking, and integrations with online ordering and kitchen display systems. Compare to a modern POS
- Types of POS Systems
- POS systems generally fall into a few types: legacy/on-premise POS (data stored on a local in-store server), cloud POS (data synced online, accessible from anywhere), mobile POS or mPOS (runs on a tablet or phone), and self-service kiosks. Most restaurants today choose cloud POS for its remote access and multi-location reporting. Cloud vs. legacy POS explained
- KDS (Kitchen Display System)
- A screen-based replacement for paper order tickets in the kitchen. Orders appear digitally, can be color-coded by wait time, and are marked complete by kitchen staff instead of being handwritten or clipped to a rail. See our KDS
- Cloud POS
- A POS system where data is processed and stored off-site (in the cloud) rather than on a single in-store server. Cloud POS systems typically run on standard tablets or computers and sync data across locations in real time. Cloud vs. legacy POS
- Food Cost Percentage
- The cost of the ingredients used to make a dish (or a period's total food sold), expressed as a percentage of the revenue that food generated. A healthy range for most restaurants is roughly 28-35%, though it varies by concept. Calculate your food cost %
- Prime Cost
- The combined cost of food/beverage (COGS) and labor, expressed as a percentage of total revenue. It's one of the most watched numbers in restaurant management because these two costs together typically make up the majority of a restaurant's expenses.
- Table Turnover Rate
- How many times a table is seated by new guests within a given period (e.g., during a dinner shift). Higher turnover generally means more revenue per seat without adding capacity. How to improve turnover
- Par Level
- The minimum quantity of an ingredient or item that should be kept in stock at all times. When inventory drops below par, it's time to reorder. See inventory management
- FIFO (First In, First Out)
- A stock rotation method where the oldest inventory is used before newer stock, reducing spoilage and waste. Standard practice for any perishable ingredient. More food waste tips
- 86'd
- Restaurant slang for an item that's out of stock and no longer available to order, usually communicated to servers and updated on the POS/menu in real time.
- Commission-Free Ordering
- Online ordering placed directly through a restaurant's own branded website or app, rather than through a third-party marketplace that charges a commission (often 15-30%) on every order. See branded ordering
- Void
- The cancellation of an item or an entire order after it has been entered into the POS, typically requiring manager approval to prevent misuse.
- Comp (Complimentary)
- An item or order given to a guest free of charge, usually to resolve a service issue or as a goodwill gesture. Tracked separately from discounts for accurate cost reporting.
- Inventory Shrinkage
- The difference between the inventory a restaurant should have on paper and what's actually on the shelf, caused by waste, theft, spoilage, or recording errors. Track inventory in real time
- Multi-Location Management
- The ability to oversee menus, staff, inventory, and reporting across several restaurant locations from a single, centralized system rather than managing each site separately. See the admin panel
- MQL (Marketing Qualified Lead)
- A prospective customer who has shown enough interest (like requesting a demo or downloading a resource) to be considered a real sales opportunity, as opposed to just anonymous website traffic.
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