Restaurant Jargon / Restaurant Terminology

86’d: When an item on the menu is unavailable for sale, it is referred to as 86’d. A drunk
customer or even an exhausted colleague, is also deemed to be 86’d.

À la, Au / Aux: French terms referring to the style or manner of cooking, or what the dish is
served with.

À la Carte: A type of menu where each item is separately listed, described and priced.

À la Minut: Referring to a dish cooked to order.

Al Dente: Literally means “to the teeth / to the bite”. The term is used when evaluating the
correct degree of doneness of dishes, particularly vegetables and pasta. It is considered just right
when biting into an item offers a slight resistance without being hard.

Al Fresco: Literally translated “in the fresh air”, this term in the restaurant industry refers to
outdoor dining spaces.

American Service: American style food Service involves serving restaurant guests food that is
pre-plated in the kitchen itself. Table sauces, Bread & Butter, Salads etc. are usually placed at the
table. Possibly the only style of food service wherein service is from the right side of the guest.

Amortise: When a business gradually writes off the initial costs of its assets or repays its loan
regularly over a period of time, it is said to be amortising the capital costs or loan.

Angel Investor: An investor who provides capital and sometimes even guidance to start-up
businesses in return for a shareholding or equity in the company. Considering the risk they take
in first time entrepreneurial ventures, they usually expect high returns. Referring to them as
“angels”, might just stem from the fact that they invest at a stage prior to proof of concept.

Apéritif: An alcoholic drink taken as an appetizer before a meal.

Appetizer: A small portion of food or beverage taken before a meal to stimulate the appetite.

Asset Register: A register that lists the restaurant’s assets including land, building, machinery
and equipment, their purchase date, purchase price and a few details necessary to compute the
depreciation and tax on these items. It also helps keep track of smaller items such as furniture,
computers etc. and their physical condition during internal audits conducted usually by the
Finance and Accounts department.

ATL: “Above the Line” refers to sales & marketing techniques that promote the awareness of a
brand through media channels including television, radio, print, cinema, the internet, and even
out-of-home mediums like billboards. Since the agencies involved used to charge a commission
when the phrase was created, accountants back then categorised them as “operating expenses”
and therefore called them “above the line” costs.

Audit: An examination of stocks, systems or processes such as inventory management, financial

transactions, customer experiences etc. with a view to correct or improve.

Average Bill per head: The total sales per day divided by the total number of visitors that day.

B&B Plate: Bread and Butter Plate is a 6 inch side plate placed to the left of the dinner plate. In
a fine dining restaurant, it would be used to place bread to be buttered and consumed. It is also
known as a quarter plate and in many cases side dishes or starters are placed in it for
consumption.

Back Burner: As putting a pot on the back burner implies that it isn’t actively being attended to,
just simmering; so also tasks put on the back burner would be the ones that are low priority for
the moment.

Back of the house: Usually consists of office, kitchen, stores and pot-wash.

Bain-Marie: A water bath or double boiler that comprises of 2 utensils: a smaller one placed
inside a larger one with a liquid (usually water) in between. It may be used for cooking custards,
whipping mousses, melting chocolate etc. or for keeping food warm as with chaffing dishes on
buffet counters or even in a cold version as in the case of a salad counter.

Barista: Italian for bartender, a Barista is a person proficient in the art of preparing and pulling
espresso-based and other beverages at a coffee shop or any other type of restaurant.

BCG Matrix: A 4-quadrant tool for restaurant menu engineering, named after a business
consulting firm called the Boston Consulting Group where its original avatar was first created.
Each item on the menu is mapped to 2 parameters: profitability and popularity. The standardised
recipe card provides us with details on profitability (selling price less recipe cost) while the POS
data provides us with the number of units sold per dish, indicating its popularity.

1. Stars (High in Popularity & High in Profitability) are the best menu items, ideally our
signature dishes to be up-sold.
2. Plowhorses (High in Popularity & Low in Profitability), with their selling price slightly
increased could become stars, thus bettering business.
3. Puzzles (Low in Popularity & High in Profitability) are difficult to sell, sometimes even
if their selling price is reduced. It may be worth considering altering these dishes,
whether by taste, presentation or name, with a view to enhancing their popularity. If
unsuccessful, treat as a dog.
4. Dogs (Low in Popularity & Low in Profitability) are difficult to sell, and if sold, offer
little profit. Thus these are best eliminated from the menu.
Bev Nap: A “beverage napkin” which collects the condensed droplets on a beverage glass. A
small square napkin is either placed on the table below the glass as a coaster or a long
rectangular one wrapped around the glass when offering to a guest.

Bill / Check: Item-wise total of purchases along with service charge and taxes.

Biometrics: Verifying the individual biology of a human being by measuring and authenticating
his unique characteristics is known as biometrics. They include finger prints, face recognition,
voice recognition, DNA, iris recognition and even blind tests for odour. It is used in restaurants
to allow limited access to certain confidential data and at a more basic level to authenticate the
presence of a staff member on duty, which is then linked to his salary disbursement, leave, etc.

Bistro: A small informal restaurant serving slow-cooked food at moderate prices; meals along
with wine.

Blast Chiller / Freezer: A blast chiller is a commercial appliance, usually used by restaurants
and catering companies to rapidly cool down food from +70C to +3C or lower within around 90
minutes, thereby rendering it safe for storage and future consumption. A blast freezer does the
same while taking the temperature down even further to -18C in around 240 minutes. Chilling
wine or freezing ice cream very quickly are examples of how it may be used.

BLT: Bacon, Lettuce and Tomato sandwich made with mayonnaise, is amongst the popular
sandwiches in the US and UK.

BOGO: “Buy one get one free” is a promotional offer at restaurants and other retail businesses.
For instance during lean hours at a restaurant, you may offer a free pint of beer for every pint
bought.

BOQ: The Bill of Quantities is an itemized statement of the cost components, including
materials and labour, of a project during construction. It serves as the basis of comparison for
competitive bids between aspiring contractors and also a frame of reference to measure actual
itemized costs and quantities versus those budgeted.

Boulangerie: A French-style bakery that specialises in baking and selling bread.

Bouquet Garni: An assortment of either fresh or dried French herbs used to enhance the flavour
of stocks, stews, soups, casseroles and broths. They may either be wrapped inside a cheesecloth /
muslin sachet and then placed in the stock, or simply tied together and placed in it directly.
Bouquet Garni typically includes Bay leaf, Parsley, Rosemary, Thyme and Peppercorn. At times,
vegetables like carrots, celery, leeks and onions are also included.

Bottom Line: Profit / Loss which is the bottom item of a profit & loss statement and the final
outcome of importance to a business.

Breakeven: The point where the business expenses equal the income generated, with neither
profit nor loss.
Broth: A thin soup made from meat or fish stock.

BTL: “Below the Line” refers to those sales & marketing techniques that are more focused and
measurable using mediums such as direct mailers, flyers, telemarketing, stickers, point of sale
brochures, exhibitions etc. Since no commission was involved when the phrase was created,
accountants back then categorised them as “capital expenditure” and therefore called them
“below the line” costs.

Busboy / Busser: An assistant waiter who helps lay out tables, clear dirty dishes and support the
service experience, usually with less direct guest contact than the waiter.

Business Model: The way in which an organisation creates & delivers value to its customers and
attracts them to pay for that value, in a manner that results in a profit.

BYOB: “Bring Your Own Bottle” is a restaurant policy that allows guests to bring their own
liquor. It is often subject to a fee / corkage.

CAC: Customer Acquisition Cost, the cost of acquiring a new customer, is a metric that every
business owner or leader should know. Convincing each additional customer about the value of
your product and service involves initiatives in research as well as sales & marketing. So for
instance, if all these costs add up to say 30,000/- for a certain period and you have acquired say
100 new customers in that period, then your cost of acquiring each new customer i.e. CAC will
be 30000/100 = 300/-.

Café: Synonymous with coffee shop, a café usually refers to a small restaurant where snacks or
light meals are served with drinks which may also include alcoholic beverages.

CAGR: Compounded Annual Growth Rate is a term representing the year-on-year growth of a
business investment over a specified period of time.

Cambro: A US based restaurant-ware company renowned for its food & beverage storage
containers which keep hot food hot and cold food cold. Nowadays the word Cambro is often
used synonymously with any brand of plastic storage containers.

Cannibalization: It refers to the loss of a restaurant’s market share in a particular catchment on

account of a similar offer coming up in that catchment, either by another outlet of the same brand
or by another brand altogether.

Capex: Capital expenditure is the amount spent towards the procurement of assets that increase
the capacity or efficiency of a business for more than one accounting year. Assets including
building, equipment, vehicles etc.

Cash Flow: The movement of money into and out of a business that affects its liquidity. It is a
measure of financial efficiency.
Casual Dining: A restaurant which offers a casual ambience and food at moderate prices where
formal dressing is unnecessary. Table service usually involves food being served either pre-
plated or on platters with or without a buffet option.

CCG: Cutlery, Crockery, Glassware is easy to refer to in one cluster as CCG in the Restaurant
Business.

CDP / DCDP: Chef de Partie / Demi Chef de Partie is a chef in charge of a particular section in
the kitchen such as grills, sauces, etc. In standalone restaurants, he may have a wider
responsibility than handling just one section. He is the third in-charge of the kitchen, the first
being the head/executive chef and the second being the sous/under chef.

Chaffing Dish: A dish of stainless steel or silver with a heating device fitted below it to keep
food warm over an extended period of time, such as on a buffet.

Charcuterie: A charcuterie is a specialized store or a space within a hotel dedicated to the

cooking, curing and smoking of meats, mainly pork as well as others including game meats,
game birds, poultry, veal and seafood. Products on offer are essentially served cold and usually
include sausages, pâtés, terrines, galantines, roulades etc.

Chaser: A drink that immediately follows another drink. For instance a beer after a straight shot
of hard liquor.

Chef’s Table: A table at a restaurant that offers an exclusive meal experience to discerning
guests, usually for a premium price. The table is located either in the kitchen itself or right next
to it, while the chef prepares his culinary creations.

COD: Cash On Delivery. Referring to payment terms agreed upon between vendor and client.

COGs: Cost of Goods sold. In the case of Food & Beverage for instance, it would include not
just the materials used to produce that particular category of food & beverage, but also materials
“consumed” through wastage, spoilage, theft or complementaries, thereby allowing one to keep a
tab on actual versus budgeted COGs.

Combi-oven: A combination oven which offers three cooking modes for a versatile range of
cooking processes:

1. Convection mode – using dry air for baking cookies, frying potato wedges or roasting
chicken.
2. Steam mode – using moist air for steaming vegetables or poaching fish.
3. Combination mode – using both moist and dry air for stewing fruit or braising meat.

Commis: A junior kitchen assistant or apprentice who performs the more basic tasks of food
production in each section of the kitchen, getting promoted from Commis III to Commis II and
finally to Commis I, before reaching a DCDP level.
Commissary: A kitchen facility where food is prepared for distribution to multiple locations. It
could be a centralised space where food is partly prepared for a chain of restaurants where the
final cooking is completed. It may also be a place where food is entirely prepared and then
delivered, either to other eateries where it is sold, or directly to customers as in a catering
service.

Comp Off: A compensatory off given to a restaurant employee for having worked on his
holiday.

Comping: Comping a meal or dish means giving it free or complimentary to a guest who may
either be a regular patron, one of some commercial importance to the establishment, or even one
whose experience at our restaurant has not been up to the mark.

Controlling interest: A shareholder who owns over 50% of a company’s voting shares, may be
deemed to have “controlling interest” in the company. At times, when the shareholding may be
even less than 50%, but the remaining shares are not actively voted, the shareholder may also
have effective control of the company.

Corkage: Restaurants that allow guests to bring their own alcohol, may levy a charge called
corkage for consuming liquor (originally drawing the cork of each bottle of wine, now other
liquor as well) bought “off the restaurant premises”.

Cost of Capital: The minimum rate of return an organisation must earn on its investment.

Cost-centre: A department within an organization which does not contribute to its profits but
instead only adds to its costs, is called a cost-centre. In a restaurant for instance, departments like
human resources, marketing, accounts, IT and admin are examples of cost-centres since they
come with a cost attached, but don’t bring in any profit directly. Their presence however, is
pivotal to improving the efficiency of the organization at large and boosting its productivity.
Such “cost-centres” are therefore a necessary part of the business.

Cover / Covers: Refers to (a) the table setting laid out for a single guest or (b) the number of
guests that can be seated in the restaurant.

Cover Charge: A fixed charge levied for a place at a table, in addition to the charge for food and
beverage.

Creditor Days: A ratio that tells us how many days on average it takes a company to pay for the
goods or services it buys. In the restaurant industry, depending on the terms we have finalised
with each of our vendors, we must make our payments. If a certain vendor allows us a 30 day
credit period and we pay him late, say in 45 days, it will strain the relationship. At the same time,
paying up too early doesn’t allow us the use of good cash flow for our working capital. Creditor
Days = Trade Creditors / Cost of Sales × 365 days. For example if in a certain period the
restaurant owes its vendors 9,00,000/- and our cost of sales for that period is 150,00,000/-, then
the debtor days of the restaurant will be = 9,00,000 / 150,00,000 × 365 days = 21.9 days.
Cross Contamination: The unintentional transfer of bacteria or other micro-organisms through
hands, clothes or kitchen tools from a food or non-food source with harmful human effect.

Crumbing: In the kitchen, the term “crumbing” or “breading” refers to coating a piece of wet
food with a bread-like mixture such as bread crumbs before cooking. In the restaurant, the term
“crumbing” refers to clearing the table of food crumbs between courses, with the help of a small
brush.

CTC: Cost To Company is the total annual cost that a company incurs towards retaining a
particular employee. It includes all expenses which are a part of the salary as well as perks and
other hidden expenses which may not be a part of the remuneration package. Ideally it should
include the cost of items which directly or indirectly go towards an employee’s gain such as
training programs for instance but not the cost of business-related expenses such as mobile phone
bills incurred to conduct the company’s business. This interpretation of CTC varies from
organisation to organisation.

Culinarian: A person who cooks or is associated with culinary arts.

Damask: A reversible fabric used for table covers or even curtains made of linen or silk with a
pattern woven into it.

Dashboard Report: a management tool that measures and presents critical data on the key
business performance areas in a summarised manner much like a car dashboard, so the
management can quickly respond with appropriate decisions.

Debtor Days: A ratio that tells us how many days on average it takes a company to get paid for
what it sells. In the restaurant industry, though we get paid for dine-in sales by cash / credit card
immediately, delayed payments sometimes occur in party catering. Debtor Days = Trade Debtors
/ Sales × 365 days. For example if a customer owes the restaurant 3,00,000/- and our sales for
that period is 150,00,000/-, then the debtor days of the restaurant at that time will be = 3,00,000 /
150,00,000 × 365 days = 7.3 days. In a restaurant business, since we don’t really need to offer
credit to anyone, “zero” debtor days would be ideal.

Delicatessen: Sometimes abbreviated to “deli”, a delicatessen is a store that sells fine foods like
cured meats, pickled vegetables, artisan cheeses & ice creams, ethnic dips etc. to the luxury
market. Some delis also have a sit down restaurant section where sandwiches, salads, cold
pressed juices, rotisserie chicken, gourmet coffees etc. may be served.

Depreciation: Writing off the value of an asset over the period of its useful life.

Designated driver: To ensure a safe drive home for his companions from a social event, one
person elects to abstain from alcohol himself. Some bars offer an incentive of free non-alcoholic
beverages to these “designated drivers” thereby encouraging social responsibility as well as their
own sales of liquor. These days, for everyone in the group to have fun, designated drivers maybe
simply be outsourced to a paid-for agency.
Due Diligence: The detailed investigation of a business or person before transacting with them.
For instance, you may conduct legal, financial and operational due diligence of a business before
you consider buying that business or verifying facts about a certain individual before entering
into a contract with him.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.

EMI: Equated Monthly Instalment is the method by which one can pay back their loan in terms
of both the principal as well as the interest amount.

English Service: A formal sort of food service in which the host or hostess flamboyantly carves
or portions out meat or vegetable dishes on the platters in which they are served. Then the waiter
takes these platters around to first serve the guest of honour, followed by the remaining guests.

Entrées: The course following the fish course in a French classical menu. Generally well
garnished and served with a gravy or sauce.

Equity: Net worth of an organisation comprising of paid up equity capital plus reserves and

surplus.

ERP: Enterprise Resource Planning is a business management system which integrates various
activities of the business. In a restaurant, activities include Food Production, Inventory
Management, HR, Marketing, Finance & Accounts, Customer Database etc.

ESOP: An Employee Stock Option Plan is a method of compensating employees with shares of
the company rather than only a cash salary for their work. It encourages a culture of loyalty and
reduces the outgoing cash burden on the business. The company typically buys back stocks from
the employee only when he leaves or retires. ESOPs also bring the advantage of reduced tax
burdens.

EV: Enterprise Value is a measure of a company’s value – often the theoretical price in the event
of a buyout. It considers not just the equity of the company but also its debt (since the buyer will
have to assume it) and its cash (which the buyer will receive). Debt increases the buying cost of
the company, while cash reduces it. It is usually expressed as a multiple of either the Last
Twelve Months (LTM) Revenue or its EBITDA.
In highly mature markets like the US, restaurants may see a Median EV of say 0.9 to 2.1 times
LTM Revenue or say 7.7 to 9.9 times LTM EBITDA, depending on the type of restaurant: Fine
Dining / Casual Dining / Quick Service etc. (“Restaurant Industry Insights” – Duff & Phelps). In
less mature markets like India, which have much more room for growth, EVs are often higher.

Exhaust: The ventilation system comprising of ducting and exhaust fans that facilitate the inflow
of fresh air and the outflow of hot / stale air.

Eyeballs: In a marketing context, eyeballs refers to the number of people that will see the
promotional material of your company brand.
FAQs: Frequently Asked Questions.

Feasibility Study: A tool that helps evaluate the positive and negative aspects of a business
opportunity, study the risks and identify ways to mitigate them before committing an investment
and take an informed decision on its technical, social and financial viability.

FF&E: Furniture, Fixtures & Equipment. Movable furniture and heavy equipment including
tables, chairs, sideboards, computers, refrigerators, cooking ranges, coffee machines, microwave
ovens, food processors, worktables, storage racks etc.

FIFO: First-In, First-Out is a method of inventory management based on the premise that goods
bought first (first-in) are the goods sold first (first-out). This is logical from the stores perspective
in the case of perishable goods as well as from the accounts perspective since during inflation it
yields the best value of closing inventory (the cost of goods bought first, thus cheapest,
correspond best with cost of goods sold first).

Financial Performance: A representation of the monetary health of a company.

Fire it: Firing a certain dish or the entire order at a particular table is a call for action to actually
begin cooking those items immediately. A server estimates the time within which a guest must
be served his food as well as the time it would take the kitchen to execute the order and gives a
“fire it” request accordingly.

Fit-out: An architectural term in regard to the act of filling the raw shell of a space with a
restaurant’s interiors including its ducting, utilities, treatment of walls, floor & ceiling,
ventilation, lighting plumbing etc.

Float: A small sum of money set aside at the beginning of a period for petty cash expenses.

Focus Group Discussions: A form of market research where a small group of 8 to 10 people
may be brought together and led by a moderator to discuss their opinions, preferences, beliefs
and attitudes towards certain products or services, with a view to have a qualitative insight into a
small section of the brand’s target market.

Food Contamination: The unintended presence of harmful substances (physical / chemical /

biological) that can cause illnesses such as food poisoning.

Food Poisoning: An acute illness caused by the consumption of contaminated food usually
accompanied by vomiting, fever, aches and even diarrhoea.

Footfall: The number of people frequenting a restaurant or a specific locality, during a particular
period of time. Visible footfall at a particular location is often a key consideration in
guesstimating possible sales of a business when selecting that location for a start-up.
FQ1, FQ2, FQ3, FQ4: An accounting period of 12 months is broken down into 4 Fiscal
Quarters with the business performance measured for each quarter. The fiscal year maybe Jan-
Dec, Apr-Mar or otherwise.

Franchise: A business scaling up technique where the learnings from one unit can successfully
be used to grow the brand to multiple units. The concept owner is the franchisor, while the entity
investing in the brand is the franchisee. The franchisor earns a one-time fee or royalty from the
franchisee for use of the brand name and guidance on the business. The franchisor also earns an
ongoing percentage of sales and profit for on-going training and support given to the franchisee.

French Press: Also known as a “plunger pot”, this coffee brewing device may occasionally be
used as a tea infuser as well. Coarsely ground coffee is left to steep with water for a few minutes
after which it is pushed to the bottom of the device using the plunger. A French Press brings out
great flavour in a beverage, but the water needs to be exceedingly hot for the drink to be
perfectly satisfying. French pressed coffee or tea left to stand for beyond a few minutes turns
bitter and is best consumed soon after pressing the plunger.

French Service: Food salvers are first placed on the guest table. The finishing of the partly
cooked food may be done by the waiter on a cart near the dining table itself right before the
guest. Then the salvers are returned to the table and the guests help themselves.

Front of the house: Guest visible areas including the lobby, dining room and show kitchen if
any.

Garde Manger: In French, it translates “keep to eat”. Essentially a part of the cold kitchen, this
section covers pantry items such as soups, salads, sandwiches, sauces, condiments, cheeses,
sausages, pâtés, terrines, pickled foods and even ice carvings.

GN Pan: Gastronorm Pans are food storage containers used in the food service industry. They
are made from food grade stainless steel, polycarbonate or polypropylene.

Goodwill: Often used synonymously with reputation of a business, from an accounting

perspective, the goodwill of a business refers to the value of its intangible assets. Typically the
future economic benefits of a business are computed using its present popularity and existing
profits as an indicator of its valuation.

Gourmand: A person whose love for food and beverage edges into over-indulgence or gluttony.

Gourmet: A person who cultivates a discerning palate for the appreciation of good food and
beverage. At times, an “excessive refinement” borders on elitism.

Grease Trap: A plumbing device that intercepts grease such as waste oil and fat present in
sinks, dishwashers and cooking equipment and traps it before it blocks the municipal sewer
system.

Griddle: A flat (usually circular) metal surface on top of a stove on which food is cooked.
Gueridon Service: An interactive and flamboyant form of restaurant service where food is
prepared on a well equipped trolley or small table in full view of the guest, right next to his table
and served to him directly.

HACCP: Hazard Analysis & Critical Control Point is a system that monitors the production,
storage and distribution of food with a view to identify and control contamination that could lead
to health hazards.

High Street: The commercial centre of a city where shops and institutions are located. In the
restaurant context it refers to an independent location where potential guests conducting their
business just outside the restaurant doors are likely to step in and patronize the restaurant. Since
it is positioned directly on the street, it is less influenced by the success or failure of another
business. Many consider it more desirable than a store-in-store location, particularly for a startup
wishing to start their brand with a clean slate.

Holding time (food): The amount of time you can hold a dish after it is prepared, until the time
it may be served without compromising on the quality & safety of the food. It also applies to the
holding of raw food. Whether you are holding raw food or cooked food, ideal hold temperature
plays a crucial role in food safety of the dish.

Holding time (table): The amount of time you can hold a booked table for a late guest, from his
reservation time till the time you need to release that table to another guest.

House Brand: An item of merchandise declared by an establishment as preferred for its guests
and usually offered at a bargain price. For instance, a house brand of wine at a restaurant is one
either chosen from those available in the market, or then one especially made in-house for them.

HR: Human Resources. A company’s deployable assets in terms of manpower.

HVAC: Heating, Ventilating and Air-Conditioning are crucial to the environmental comfort and
operational ease of the Restaurant and its Kitchen.

In-Depth Interviews: A qualitative market research interview with a single respondent, to detect
her motivations, attitudes and thoughts on the subject of study.

In-house restaurant: A restaurant situated within a larger establishment such as a hotel or

corporate office. Unlike a stand-alone restaurant, support functions are shared with the parent
organisation.

In the weeds: A restaurant team member’s plea of being snowed-over with so much work, that
it’s hard to keep up.

Ingress/Egress: The right to enter a property such as a restaurant, is referred to as ingress. A

guest who has created an issue in the past for instance, may be denied ingress to the restaurant.
The right to leave a property such as a restaurant, is referred to as egress. A guest who is creating
an issue in the present may be denied egress from the restaurant.
Inorganic Growth: A business plan that involves accelerated growth by merging with or
acquiring other businesses is referred to as inorganic growth. Such growth can bring new ideas
into the business and also allow quick access to new markets.

IRR: Internal Rate of Return is a budgeting tool to evaluate the attractiveness of return on capital
investment in a certain project. It is the annualised effective compounded return rate that makes
the Net Present Value of all cash flows from that investment, equal to zero. If the IRR of a
project is higher than the return any other investment opportunities offer, then it is desirable to
go ahead with the undertaking.

Intellectual Property (IP): An intangible asset of human knowledge that is patented or

copyrighted as property of the person or organisation who has commissioned or funded the
research of such an endeavour. Examples may include the creation of a particular brand-name, a
certain formula, a process design innovation, a newly invented piece of equipment, a fresh body
of work etc. On account of the value attached to the creation of this distinctive information, it is
considered ethical for parties exposed to such information, to keep it a secret. They are often
asked to sign a Non-Disclosure Agreement (NDA) with the IP owner as protection from
plagiarism.

Julienne: A knife technique which involves cutting vegetables into thin, even-sized matchsticks.
Salads, fries and garnishes often call for a Julienne cut.

JV: A Joint Venture is a contractual arrangement between two or more parties agreeing to create
a new business entity by contributing equity, exercising control over the enterprise and sharing
profits or losses over a finite period of time.

Key Money: In parts of a city where the rent act restricts escalation in rentals, landlords protect
themselves by collecting additional money from prospective tenants who would like to secure,
modify or renew their tenancy. It is usually paid by way of a deposit of some months rent, often
in cash. While in some instances it is refundable and stated to cover non-payment of rent or
damage to property, it is often taken as non-refundable to cover cleaning and repairs. Key Money
is illegal in many countries and so though some refer to it as “goodwill” to protect landlords
from below market rentals, others say it is simply a bribe that landlords extract from tenants.

Kill it: Cooking a dish extra-well to the point of almost being burnt. For instance, a guest who
emphatically insists that his steak not be the slightest bit pink and wants it really well-done,
might be a candidate for his server telling the kitchen that the dish be cremated (till there’s not
the slightest bit of life left in it).

Kitchen steward: One who supports the kitchen staff by keeping all kitchen areas, equipment
and utensils clean and sanitised. Apart from cleaning pots and pans, a kitchen steward would also
be responsible for clearing the debris from serviceware including cutlery, crockery and glasses
and washing them thereafter.

LCV / CLV: Lifetime Customer Value / Customer Lifetime Value is an assessment of the
financial value of a customer to an organization through the entire period of their association.
Example 1: A customer spends 100/- on each visit, visits once a month and is transferred to
another city after 2 years. This customers lifetime spend will be = 100/- × 1 time × 24 months =
2,400/-.
Example 2: A customer spends 100/- on each visit twice a month and continues being a customer
for 5 years. This customers lifetime spend will be = 100/- × 2 times × 60 months = 12,000/-.
Clearly, all customers are not built equal. (Some customers may even refer you to new ones,
without you spending any money in acquiring them). We must also consider the customers that
leave. Let’s say that out 100 new customers you acquire in a particular month, 5 leave. So the
churn rate is 5% per month. This means that the “lifetime” of your customer will be 1 / 0.05 = 20
months.
LCV = (Average spend per month × Gross Margin %) / Churn Rate. So if the average spend per
month is 150/-, the gross margin 70% and the churn rate 5%, the LCV = (150 × 70%) / 5% =
2,100/- over 20 months.

LCV to CAC Ratio: When the cost of acquiring a customer exceeds the ability to monetise that
customer, the business model is a failure. This ratio helps keep track of just that. If
the LCV equals the CAC, its not worth it. When the LCV is 3 or 4 times the CAC its considered
to be a good & sustainable model. If its 5 times or more, the business should explore the
possibility of spending more on its research as well as sales and marketing initiatives to acquire
new customers.

LDA: Legal Drinking Age is the minimum age at which a person is legally permitted to consume
alcoholic beverages. Some European countries permit drinking of alcohol from childhood within
their home while some Islamic countries and a few Indian states do not permit it at all. Broadly,
across most countries, legal drinking age ranges between 18 and 21 years.

Lead time: The amount of time between placing an order (with a vendor) and the receipt of his
products and or services. Knowledge of the lead time of each vendor helps plan out the ordering
time-schedule, the payment schedule and the overall management of inventory.

LIFO: While Last-In, First-Out has accounting connotations, in the Restaurant Business this
method of human resource management may be used in the event of a staff lay-off where the
employee last hired (Last-in) would be the first to be relieved (First-out).

Line Cook: A line cook is one responsible for looking after a particular line or section of
responsibilities in the kitchen. He may be assigned the task of stocking up plates at the pick-up
counter, cleaning the cooking surfaces of his station, prepping sauces at the snack counter, or
cooking food at the grill section on a particular day. Some cooks stay in this position through
their career, while for others it is something they may choose at the start of their career as a path
to become all rounders by working each section of the kitchen.

LOI / MOU: Letter of Intent / Memorandum of Understanding is a document that outlines an

agreement between two or more parties. The extent to which this is legally binding depends on
the wording as well as the intention of the parties concerned. It serves as an interim “in
principle” arrangement before a final agreement / contract is signed.
Loss leader: A pricing strategy where a certain dish on the menu is deliberately priced either
equal to or lower than its actual cost, thereby “losing” money for the organization. This is done
with the intent of “leading” customers to make other purchases within the business that will
bring in the profit; thus the name. For instance, a restaurant may offer a soft serve ice cream at a
throw away price, only to encourage its customers to spend more on their other items... say their
burgers for instance, which are profitable.

Loyalty Program: With a view to retain valuable existing customers and encourage new ones to
make frequent purchases, a business creates a reward program through which it awards its guests
bonus points, gifts or special services for their patronage to encourage them to continue spending
more. The company running the program gains access to their customers’ habits and preferences,
and also some personal information about their customers.

M&A: Mergers & Acquisitions is a phrase used in the context of business strategy where a
business intending to grow, either combines with or buys out another firm with a view to create a
new entity that can better leverage the joint strengths of both companies in the marketplace.

Main course: The chief course of a meal.

Maitre d’hôtel / Maitre d’: Meaning “Master of the House” in French, is in charge of allocating
guests their tables and servers their dining areas each day. Being responsible for the overall
dining experience and complaints if any, this person often plays the role of a de-facto restaurant
manager and is thus considered to be a key to a restaurant’s success.

Mark up: An amount added to the cost price of a particular item to arrive at its selling price.
This amount includes overheads and profit.

Menu: A menu is a statement of food and beverage items on offer, designed on the basis of guest
needs and organisational objectives. This French word implies “particulars”. It had its origins in
1541 when Duke Henry of Brunswick was seen referring to a long slip of paper that reflected the
list of dishes to be served. This enabled him to reserve his appetite accordingly.

Menu Engineering: Identifying the most and the least popular & profitable dishes on the menu
with a view to eliminating or altering existing dishes and adding new ones, while holistically
considering their price and portion sizes to deliver better value to guests and promoters.

Menu mix: The ratio of each item on the menu in relation to the rest of the items on the menu in
terms of its sales, popularity and profit.

MEP: Mechanical, Electrical and Plumbing is a sub-section of specialised engineers within the
architectural team that develop designs and drawings including air-conditioning, ventilation,
plumbing, fire protection systems, telecommunication systems, power & lighting etc.

Michelin Star Restaurant: Michelin, a French tire company launched its first guide book in
1900 to encourage road tripping, by anonymously reviewing restaurants for their culinary
excellence. Inspectors across the world rate food at restaurants based on quality of products,
mastery of technique, mastery of flavours, personality of cuisine & level of creativity, value for
money and consistency of food throughout the menu & through the year.
One Star: A very good restaurant in its category, offering cuisine prepared to a consistently high
standard. A good place to stop on your journey.
Two Star: Excellent cuisine in its category, skilfully crafted dishes with specialities and wines of
first class quality. Worth a detour.
Three Star Exceptional cuisine, distinctive dishes, precisely executed using superlative
ingredients. Often extremely expensive with outstanding wines. Worth a special journey.
A Bib Gourmand Award signifies quality food at a value price. Most other Michelin Star
restaurants tend to be expensive.

Microbrewery: A space sometimes attached to a restaurant, where high quality flavoured beer is
produced in small quantities and sold fresh usually without the addition of preservatives.

Minimum Guaranteed: May refer to (a) Minimum Guaranteed Guests (Party Catering) – The
minimum number of guests assured by the host as chargeable by the restaurant for a particular
event, or (b) Minimum Guaranteed Rent – The minimum amount of rent assured to the landlord
payable by the restaurant as a base figure, over and above which the landlord may be entitled to a
percentage of the restaurant’s sale (usually net of taxes).

Minimum Wage: The lowest wage that an entrepreneur is permitted to pay by law, as per the
employee’s specific category (un-skilled, semi-skilled, skilled worker). The government defines
minimum wage amounts to ensure that a basic standard of living by way of good health, comfort,
dignity, education and contingencies are provided for its citizens.

MIS: Management Information Systems. Systems that capture the essence of management
controls through concise formats.

Mis en place: Literally translated “put in place”.

In the cooking area it refers to preparation of the kitchen for cooking by ingredient processing as
well as utensil and service-ware readiness.
In the dining area it refers to preparation of the restaurant for service by table setting, service-
ware cleaning as well as sideboard stacking.

Mis en scene: Literally translated “put in scene”. This refers to the broader picture in area
preparation. It includes mis en place as well as general layout readiness.

Mixer (appliance): A device used to mix foods or beverages in a kitchen / bar. Mixers may be
either manual or electrical.

Mixer (drink): Non-alcoholic beverages such as juices, sodas etc. that are mixed with alcoholic
beverages to create cocktails.

Mixology: The science and art of preparing mixed drinks.

Molecular Gastronomy: A discipline of food science where chefs utilise their culinary
knowledge with an understanding of physics & chemistry to innovatively and artistically
transform the tastes & textures of foods. This experimental style of cooking uses some
specialised ingredients, tools & techniques including pressure, temperature and food chemical
mixtures to create some extraordinary results including spheres, vapours, foams and seemingly
limitless other possibilities. Some prefer to refer to it as “deconstructivist” or modernist cuisine.

Mood Board: A collection of images, text and object samples that represents the proposed mood
or feeling of a particular brand of restaurant or other retail space. Designers use it to visually
illustrate the style they intend treating a certain space with, gathering feedback of others in the
team and gaining their concurrence.

MTD: Month to Date is the period starting at the beginning of the current month and ending at
the current day. It is often used to see how the business is actually faring up to the current day
versus its budget for that period in terms of sales, profits etc. for instance.

Mystery dining: An exercise in which a restaurateur secretly hires the services of a professional
to report on the delivery of the restaurant’s brand experience to its guests with a view to correct
gaps that occur in this endeavour.

Napery: In reference to restaurant linen fabric collectively including table cloths, runners,
skirting of banquet-tables, napkins, aprons etc.

NCNS: A “No Call No Show” by an employee who goes on an unauthorized absence from work
without notifying his employer. When this happens often or for a significant duration, a legal
notice usually needs to be given and disciplinary action taken.

NDA: A Non-Disclosure Agreement is a legal contract between two or more parties restricting
them from sharing confidential or proprietary information shared between them, with any other
party.

Neighbourhood considerations: Refers to sensitivity towards the residents of the

neighbourhood in terms of disturbances such as sound, light, smoke, parking, religious and other
sentiments.

(Net) Working Capital: Short-term assets (Cash + Accounts receivable + Inventory) less short-
term liabilities (Accounts payable + Wages payable + Taxes payable).

No show: Either a guest who doesn’t show up after making a table reservation or an employee
who doesn’t show up at work.

Nuke it: Microwave a dish or an item required to prepare a dish.

ODC/OPC: Outdoor Catering / Outdoor Party Catering includes various social events from
weddings to seminars, anniversaries to picnics that are catered to outdoors. While outdoor
usually indicates open air spaces, it may also include enclosed spaces such as banquet halls
where the caterer creates a temporary kitchen at the venue where he serves his guests.

Opex: Operating Expenditure is the ongoing cost of running a business including the cost of
materials, labour and overheads.

Organic Growth: A business plan which involves core growth of a company internally by
increasing its output through expansion of its own existing customer base and also by
introducing new products or services.

Organoleptic Tests: A sensory evaluation of food and beverages in areas including product
colour, appearance, hand-feel, mouth-feel, pliability, aroma, taste etc. usually conducted by a
trained professional or panel of judges.

OS&E: Operating Supplies & Equipment. Smallware including cutlery, crockery, glassware,
linen, silverware, bar tools, kitchen tools, disposables etc.

Outlay: The expenditure proposed to be incurred on a particular project or part thereof.

Outsourcing: Contracting some services to a third party with a view to focus on its own core
business, improve efficiency, save costs etc. In the restaurant context for instance, services such
as valet, housekeeping, dessert preparation etc. are sometimes outsourced.

PAT: Profit After Tax

Pathogen: Microorganisms such as bacteria, virus, fungi etc. that are infectious and disease
causing.

Pax: A hospitality industry term used interchangeably with “people”. So number of pax is
typically in reference to the number of guests at a restaurant, number of customers at a party,
number of occupants in a hotel, number of passengers in an aircraft etc.

PBT: Profit Before Tax

PDR: A Private Dining Room is a space separate from the main dining area of a restaurant,
where exclusive small gatherings may be hosted.

Performance Appraisal: A systematic and periodic review and evaluation of an employee’s

work performance as against the goals outlined for him in his existing role by his superiors. The
criteria of assessment may include job knowledge, productivity, initiative, adaptability,
leadership ability etc.

Pest: A creature capable of directly or indirectly contaminating food therefore detrimental to

human health.
Pick-up counter: A counter in the kitchen from which servers pick-up food items to be served to
guests. One member of the kitchen staff barks out the order for each table and as each item is
prepared, the kitchen staff deposit it on this table in readiness for a “pick-up” by the servers.

Plating: Presenting food attractively on a plate, platter or bowl to increase its appeal to restaurant
guests is an art called plating. It involves highlighting the key ingredient with support ingredients
while maintaining a balance of colours, textures, shapes, temperatures and nutritional aspects. A
white plate is considered by most as the best background to present their food’s natural colours.
Some find it aesthetically better to plate an odd number of pieces rather than even on their plate.
Many chefs visualise a clock and have their favourite placement locations for each aspect of the
meal corresponding to the hour, for example protein between 9 and 11 o’clock, starch between 4
and 8 o’clock, vegetables between 1 and 3 o’clock.

Points / point system: Refers to the allocation of predefined units for various levels of staff with
an intention of equitable distribution of tips.

POP: Point of Purchase is a type of marketing material placed at locations where purchase
decisions are made. For instance, a tall menu tent card display at a restaurant entrance or
danglers hung above a food deli display counter.

Pop-Up Restaurant: A temporary restaurant where a chef can test-launch his food or a
restaurateur can test-launch his concept in a brick & mortar format for just a few days or weeks
with a live audience. Also called supper clubs, these restaurants can operate from a home, an
existing restaurant during its non-peak hours, an event centre, a gallery, a factory, or even a car,
thereby limiting the capital expenditure and the liscensing requirement. Patrons are usually
informed of pop-up restaurants through social media and often appreciate their creativity, variety
and affordability.

Portion Control: The establishment of standards in a restaurant for the weight, size and number
of items in each dish that the organisation will serve consistently regardless of when or by
whom.

POS: Point of Sale is the location at which sales transactions occur. While in a restaurant this in-
fact happens between the guest and the server at the table, the computer terminals referred to as
POS terminals, capture sales transactions and print receipts at sideboards nearby.

PR: Public Relations. Endeavours made by the entrepreneur to give a social image to his
establishment.

Prepping: The act of preparing the kitchen and dining area of the restaurant for guests in the
shift ahead.

Private equity: Money invested in companies that haven’t gone public, i.e. those that are not
listed on the stock exchange.

Product Mix: The full range of products on offer (on the menu).
Proof of Concept: Evidence that demonstrates the feasibility of a particular business model or
concept wins the confidence of its investors. For instance, an entrepreneur who with his existing
restaurant can show proof of success in terms of consumer demand, return on investment,
profitability, operational efficiency, solidity in team etc. is more likely to be funded to scale up
his brand to multiple locations.

Push it: Sell it. A dish may need to be hard-sold at times when it is nearing the end of its shelf-
life or when money might be lost by not selling the dish immediately.

QSR: Quick Service Restaurants is the phrase now used for restaurants that were earlier referred
to as Fast Food Restaurants.

Quick & Dirty: A task where speed and price are more important than quality.

R&D: Research & Development of new products, services or processes in the business that can
better fulfil market needs.

Ramekin: Fireproof dishes in which individual portions of savoury or dessert items are both
baked and served. A Ramekin is also the name of a food made of cheese, egg and breadcrumbs
prepared within a ramekin dish.

Ramen Profitable: A business that is making just about enough money for its promoters to
make ends meet. This buys some time for the business to continue surviving in the marketplace.
Being Ramen Profitable is not just good for the morale of the entrepreneur, but also improves the
promoter’s relationship with his investors. Popularised by Paul Graham, this term is believed to
be derived from the low-cost noodles called Ramen.

Regulars: Guests who patronise a business frequently enough to be rewarded or at-least more
personally acknowledged than other guests. Repeat patrons are a critical factor in the success of a
restaurant businesses.

Reserves: A company’s assets kept readily available as cash / investments.

Rest room / area: Space allocated for staff relaxation, changing of attire and grooming.

Restaurateur: The manager or owner of a restaurant.

RevPAR: Revenue Per Available Room is a measure of the financial performance or health of a
hotel. It is a function of room rates (per night) and occupancy.
        RevPAR = Total Net Room Revenue† / Number of available rooms in the same period
† net of discounts & taxes, and not including revenue from meals.

RevPASH: Revenue Per Available Seat Hour is a measure of the financial performance or health
of a restaurant. It is a function of seat revenue (per hour) and occupancy.
        RevPASH = Total Net Food & Beverage Revenue† / Number of available seats in the same
period
† net of discounts & taxes.

Right of first refusal: A contractual right within a business agreement, that allows one party the
privilege of first exercising or rejecting an option granted by the other party. For instance, a
landlord may grant his tenant the first right of refusal in extending their agreement beyond the
initially proposed period. Only if the tenant declines, the landlord may put his property up for
rent to an alternate tenant.

Robot-Coupe: A commercial food preparation equipment manufacturer head-quartered in

France. It is most renowned for its reliable, patented heavy duty food processors through industry
kitchens across the world.

ROI: Return on Investment, is a measure of business performance that evaluates the efficiency
of gains from a particular investment.

Roll-up: Silverware wrapped in a napkin which may be either linen or paper.

Roux: Pronounced “Roo”, this is a mixture of equal parts of melted fat (butter or vegetable oil or
lard) and flour, cooked together as the base for the three mother sauces of French classical
cooking (béchamel, velouté & espagnole). Roux is also used as a thickener for soups, stews and
gravies. The extent to which the roux is cooked contributes to the flavour and colour of the final
dish.

Runner: A food runner is a busboy / busser. A table runner is a table accessory made of narrow
fabric or paper used to drape a table at a restaurant.

Running Order / On the Fly: Refers to an order that needs to be served right away. This is
either because the guest is getting late, the rest of the guests at the table have been served, a guest
needs to leave urgently, a dish is inedible, or because the waiter has delayed or made a mistake
with an order that needs to be replaced / served urgently.

Russian Service: Food pre-cooked and pre-portioned in the kitchen is brought to the table on
platters and served quickly and with formality from the left of a guest, usually at banquet
functions.

Salamander: An electric or gas powered oven with high temperature overhead heating elements
used to grill sandwiches, melt cheese, brown baked dishes etc.

Same-Store Sales: A metric that measures growth in restaurants / retail stores that have been
doing business for more than 12 months. From the 13th month onwards, the revenue and growth
of the restaurant can be compared to its own performance in the same period the previous year.
This can be done for a particular week, month or financial quarter the previous year, and once
the second year of being in business is complete, you could compare the entire years sales to the
previous years sales.
Sangria: Spanish drink made from sweet red wine, pieces of fresh fruit like orange, lemon etc.,
and spices like cinnamon, cloves etc.

Sanitizing: Cleaning or disinfecting surfaces that are prone to harbouring bacteria and
compromising the health or safety of restaurant guests.

SBU: Strategic Business Units are autonomous operational divisions within large companies that
have independent missions and objectives. They are small enough to respond quickly to market
situations and large enough to control most factors influencing their long term performance.

SCM: Supply Chain Management covers the management of inventory (either stored or in
transit) through each stage that the goods pass – right from the raw material stage at the vendor’s
premises until the point of consumption stage and includes all the various work-in-progress
stages in between. In the case of food, it involves the management of inventory from farm to
plate.

SEC: Socio Economic Classification is the way marketers categorize their potential customers
on the basis of occupation and education of the chief wage earner of a Household in India. This
is based on a flawed assumption that higher education always leads to higher income and
therefore higher consumption potential. For instance, a post graduate executive may indeed be
likely to have a higher income and therefore higher consumption potential, but in reality a
trader / retailer with almost no education may be earning and consuming more.

Server (computer): Main computer that stores consolidated data accessed by other computers or
POS units on the network.

Server (person): A waiter / waitress serving the guest.

Service Charge: An additional charge for a service for which there is already a basic fee. At a
restaurant, it may involve adding an additional percentage of the bill to the total bill, often in lieu
of tipping. It may also involve the restaurateur paying service tax to a consultant for instance.

Service Tax: A tax levied to a service provider for services rendered. Monies received for out of
pocket expenses such as travel, lodging etc. supported by documentary evidence that are borne
by the client, are not subject to service tax.

Sharking / Poaching (employees): When an entrepreneur or a business head from one

restaurant, persuades an employee from a competing restaurant, to join them instead. Fellow
restaurateurs often-times call for a truce on poaching so as not to hurt one another’s businesses.

Sharking / Poaching (tables): When a server intercepts guests being led to other tables and
redirects them to his own tables for his own gain.

Shelf life: The amount of time for which a food or other perishable item may be kept on the shelf
or served to a guest, without becoming unsuitable for consumption or unsuitable for cooking. A
fresh-cream cake for example, may have a “best consumed by” number of hours on the label,
after which it’s intended form may begin to deteriorate such as the cream drying up, souring etc.

Shorting: Like short-changing, a cashier may be shorting a restaurant of money, a vendor may
be shorting a restaurant of wares or a guest shorting a restaurant of money due to the restaurant
by way of the check.

Sideboard / station: A pre-service setup area in the dining room containing extra cutlery,
crockery, glassware, linen, accompaniments, water jugs, hot plates, POS system etc.

Signature Dish: A recipe that epitomises the distinctive style of cooking of a particular
restaurant or a particular chef by which that restaurant or chef may be identified.

Silver Service: A formal style of service wherein food is transferred from a service dish to the
guest’s plate from his left using a service spoon and fork. Clearing of plates and serving of
beverages is done from the guest’s right. Further, guests seated at the table are served clockwise,
ladies first followed by the gentlemen and lastly the host.

SLA: Service Level Agreement is a contract between two parties that represents the minimum
performance criteria that a service provider promises to deliver to its customer. It usually
comprises of service provider deliverables including basic measurable service level scheduled,
problem handling, response time, warranties, penalties payable against gaps in delivery etc. as
well as customer responsibilities.

Smorgasbord: Swedish for Open-faced Sandwich table, this term refers loosely to a buffet of
hors d’oeuvres, smoked & pickled fish, hot and cold meats, cheeses, salads and relishes.

Soft Launch: A method of announcing the opening of a restaurant to a limited audience with
little fanfare. The intent is to first get their buy-in, before making it available to the general
public.

Sommelier: A French term for a wine steward who has expertise in wine varieties, their
procurement, storage and service. In high-end restaurants, that offer such wine, a sommelier will
help the restaurant select its wines, work in conjunction with the chef to plan the pairing of wines
with food and accordingly recommend suitable options to guests, as per their tastes and budgets.

SOP: Standard Operating Procedures are a set of operational instructions (usually in the form of
a manual) with a view to ensure uniformity in the maintenance of predetermined standards of
performance and delivery of guest experience.

Sous Chef: Meaning under chef is the number two person after the executive chef or head chef,
in charge of the kitchen.

Speed Pourer: A device fitted at the mouth of a bottle (usually liquor) to facilitate a speedy flow
and accurate quantity of the drink without spillage. Particularly useful during peak hours at a bar,
the bartender’s practised hand, times each pour to perfection sometimes sliding his thumb or
finger over the air-hole to control the pour.

Speed Rail: A bottle holder usually made of stainless steel in easy reach of the bartender to
facilitate speedy service to guests. Based on the bar menu, the bartender keeps within it the most
often used bottles of spirits, other liquors and mixers.

Stand-alone restaurant: One that is independent of supporting infrastructure such as may be

available within a hotel – for example stores, administrative offices, housekeeping etc.

Store-in-Store: The location of a restaurant situated within another business such as a mall,
theatre, casino, airport, railway station etc., where the existing patrons of the larger business are
tapped as potential patrons of the restaurant. The success or failure of the larger business often
influences the destiny of the restaurant and so restaurateurs sometimes try and sign up for such a
location with an entrance independent of the mall.

Succession Planning: The identification and development of internal talent to meet the future
goals of the company. It prepares people for leadership roles in readiness to take charge when the
need arises.

Sunny side up: A style of fried egg with only one side cooked, thereby leaving the yolk on top
intact like a sun.

Sweat Equity: A shareholding in a company earned by an individual’s effort rather than money
invested by him in a partnership. In a start-up, apart from co-founding partners who may hold
shares by virtue of their “sweat”, some employees may also be offered stock equity alongside a
basic salary which is usually lower than a salary that equals their market value.

TA/TM: Target Audience / Target Market are specific groups of customers that are targeted as
your ideal guests in a start-up or your preferred guests in an exiting restaurant business based on
characteristics such as age, gender, income, education, buying habits etc.

Table d’hôte: A fixed menu prepared in advance, offering limited options at a set price and time.

Table Turns: The number of sittings per meal at each table through the opening hours of the
restaurant are known as table turns. To ensure and improve profit in the restaurant business, table
turns need to be done, though without the guests feeling rushed. For instance, a fine dining
restaurant can have two table turns at dinner while a casual dining restaurant with a shorter guest
dining time may do three or more table turns.

Tableware: All table appointments in a restaurant including cutlery, crockery, glassware, linen,
cruet set, bud-vase, ashtray etc.

Tasting Menu: A pre-fixed restaurant meal that offers a variety of dishes served course-wise in
small portions.
The Floor: Getting on to the floor means getting out of a place of low activity like an office for
instance, to an area where the action is! While this mostly refers to areas where the customers
are, it is also used in context with back of the house areas of action like the kitchen.

Tips / Gratuity: Money left by the guest in exchange for a service performed.

Top Line: Revenue / Sales / Turnover / Income which is usually the top item of a profit & loss
statement.

TTL: “Through the line” refers to those sales & marketing techniques which integrate both
the ATL & the BTL promotional methods.

Udipi: A little town in Karnataka, India, whose local cuisine was originally cooked at the
Krishna Matt Temple in Udipi. Their quick, clean and economical vegetarian meals, slowly
made their way into the hearts of many people in different parts of the country. Starting with
their own cuisine including idlis and dosas, they went on to create and offer their own versions of
Chinese food and also pizza which are quite popular amongst Indians the world over. In the
restaurant business, Udipi restaurants are admired for their resourcefulness and innovation.

Up selling: A sales technique that involves the server exposing the customer to options that are
more expensive or more profitable for the establishment.

UPS: Uninterruptible Power Supply is a device that provides energy backup to the IT system
during electricity fluctuation or failure, thereby enabling the user to save valuable data during a
power failure.

Upside Sharing: Sharing the “upside” with the landlord of a restaurant would mean that in a
situation where sales exceeds expectations projected by the restaurateur, he would be willing to
share a percentage of those increased sales with his landlord thereby putting both sides in a win-
win situation.

USP: Unique Selling Proposition. The unusual factor that differentiates one product / service
from another.

Valuation: Determining the worth of a company by analysing the market value of its assets, its
future prospective earnings, the composition of its capital structure and the quality of the
company’s management. Valuation of a company is required during a merger or acquisition, tax
assessments, business analysis etc.

VAT: Value Added Tax is a consumption tax levied at each stage of the production or
distribution of a product based on the value added to the product at that stage.

Venture Capital: Money provided to a company in its early stages in return for a share in
equity. Though such investment may be considered high risk:high reward, investors with sound
business acumen are usually able to identify high-potential businesses that are scalable. Usually,
venture capitalists invest after the proof of concept stage.
VFM: Value for Money. The fair amount a consumer perceives a particular product / service to
be worth.

Waitlist: A list of guests waiting to be seated at a restaurant while it is full. The restaurant
representative handling the seating writes down the name of the host of each group in the order
they arrive along with the number of their guests. Then as the occupied tables clear up, she
allocates a table based on a first-come first-served basis and a match between table size and
group size based on the policy of the restaurant. While a celebrity skipping this line rarely goes
down well with other waiting guests, a handicapped person skipping it is often more acceptable.

Walk-in (cooler/freezer): A refrigerated storage room for food and beverage within which a
person can actual walk-in and collect his requirements.

Walk-in (guest): A guest who directly walks into the restaurant without a prior reservation.

YTD: Year to Date is the period starting at the beginning of the current year and ending at the
current day. It is often used to see how the business is actually faring up to the current day versus
its budget for that period in terms of sales, profits etc. for instance.