What Do Common Restaurant Business Terms Mean?
Your accountant says prime cost. Your POS says average check. Your manager says covers. Same restaurant, three languages.
This glossary puts every term from the 2027 restaurant trends in plain words, so you can read your own numbers and ask better questions.
Over 1,000 small businesses have worked through their numbers with Dr. Paul Borosky, Business Consultant. Plenty of them serve food.
Talk to Dr. PaulCall or text (321) 948-9588.
Last Updated: November 2026
Real World Help From Dr. Paul
Restaurant Business Plan Template
Built around average check, comp sales (same-store sales), and more.
See the templateHow This Guide Works
In a hurry? Jump to a letter below and read one term. Each one has a short definition and a link to the trend page that uses it. Want a story instead? Fast Frankie, who runs a pizza shop in Dr. Paul’s Fabled Forest Business School Series, learns two of these words the hard way in the box after the terms.
Average check through Zero-proof menu, grouped by topic.
What Does Each Restaurant Term Mean?
From average check to zero-proof menu, each entry is short enough to read in under a minute, and 13 point to a deeper guide on Quality Business Plan.
Average check
What one guest or one table spends per visit, on average. Divide sales by the number of checks (or guests) for the same period. It is also called average ticket.
Beverage attach rate
The share of checks that include a drink. If 60 of 100 checks have a drink, your attach rate is 60%. It matters more in 2027 as diners drink less alcohol.
Used on: 2027 restaurant trends
Break-even point
The sales level where you cover every cost and make zero profit. Below it you lose money. Above it you start to earn.
Comp sales (same-store sales)
Sales at a location compared with the same location a year earlier. Chains use it to show growth that does not come from opening new units.
Covers
The number of guests served. A table of four is four covers. Owners use covers to compare busy and slow shifts.
Cross-training
Teaching staff to work more than one station. It keeps a shift running when someone calls out and cuts overtime.
Used on: Controlling labor costs | Full cross-training guide →
Fire Mode and Foundation Mode
Dr. Paul’s way of sorting problems. A fire costs money today and gets fixed first. A foundation problem builds slowly and gets a plan.
Fixed vs. variable costs
Fixed costs stay the same when sales change, like rent. Variable costs move with sales, like food. Knowing which is which tells you what a slow week really costs.
Food cost percentage
Food cost divided by food sales, shown as a percentage. If you spent $3,000 on food and sold $10,000, it is 30%. Set your own target and watch the trend week to week.
Used on: 2027 restaurant trends, Smaller, high-protein portions
GLP-1 diners
Guests taking weight-loss drugs who often eat smaller portions. They still dine out, but they order differently.
Used on: Smaller, high-protein portions
Gross margin
What is left from sales after the direct cost of what you sold. For a restaurant, that is mostly food and drink cost.
Income statement (P&L)
The report that shows sales, costs, and profit for a period. It answers one question: did we make money last month?
Used on: What is squeezing restaurant profits | Full income statement (p&l) guide →
KPI
Key performance indicator. A short list of numbers you check every week, like prime cost and covers. Pick a few, not twenty.
Labor cost percentage
Total labor cost divided by sales. Include wages, payroll taxes, and benefits. It tells you whether the schedule fits the sales.
Used on: What is squeezing restaurant profits, Controlling labor costs
Mise en place
French for everything in its place. Prep done and stations set before service, so the line moves fast.
Off-premise sales
Sales eaten somewhere else: takeout, delivery, drive-thru, and catering. It has its own costs, like packaging and delivery fees.
Used on: Takeout vs. dine-in
Portion control
Serving the same amount every time. One extra ounce on every plate adds up to real money by month end.
→ Smaller, high-protein portions | Full portion control guide →
Prime cost
Food and drink cost plus total labor cost. It is the biggest controllable cost in most restaurants. Set your own target and track it weekly.
Used on: 2027 restaurant trends, What is squeezing restaurant profits | Full prime cost guide →
Revenue vs. profit
Revenue is everything you sold. Profit is what is left after every bill. A packed month can still lose money.
Scenario planning
Running your numbers three ways: good, expected, and bad. It shows what you would do before a slow month arrives.
Second-generation restaurant space
A space that was already a restaurant, often with a hood and kitchen left behind. It can cost far less to open than an empty shell.
Used on: 2027 restaurant trends
Strategic shrinkage
When a chain closes its weaker locations on purpose to protect the rest. It can leave guests and good spaces up for grabs.
Used on: When a nearby chain closes
Table turnover rate
How many times a table is used during a shift. More turns on a busy night means more covers without more seats.
Turn time
How long one party holds a table, from seat to clear. Shorter turn times raise your turnover rate.
Unit
One location of a restaurant brand. A chain with 40 units has 40 restaurants.
Voice AI ordering
Software that answers the phone or drive-thru and takes orders by voice. Worth it only if it frees staff time you can measure.
Waste log
A daily list of food thrown out and why. It shows where money is going into the trash.
From the Fabled Forest
What Did Fast Frankie Learn From One Word?
Fast Frankie, the pizza shop owner, bragged about his busiest Friday ever. Doctor Owl asked what his food cost percentage was. Frankie shrugged. “Pizza’s cheap to make.” They pulled the invoices. Cheese had jumped, and Frankie’s percentage was higher than he had guessed. Every pie sold was earning less, which made it a fire, so the two of them opened Dr. Paul’s Organize-Plan-Grow™ Strategy: track it weekly, set his own target, and reprice the two pies that missed it.
Not Sure Which Number Is Hurting You?
Bring one month of sales and invoices, and Dr. Paul will point to the term that matters most for your restaurant.
Or call or text (321) 948-9588.
Where Should You Go Next?
Read the 2027 restaurant trends to see covers at work, or open the restaurant template. The trends hub covers nine more industries.
About the Author
Restaurant owners hand Dr. Paul Borosky their invoices and P&L all the time. He holds a DBA and an MBA in Finance, has worked with 1,000+ small businesses, and wrote these definitions to be read between lunch and dinner service.