Here's a list of foodservice and restaurant management terms that every manager should know because it is important to apply the underlying concepts. If you don't know them, then start studying!
Marketing a business to existing customers
Employee Turnover Ratio
A measure of the number of employees you replace each year. The higher your employee turnover ratio, the higher your labor costs. Want to calculate yours, and learn ways to lower it? Check out the Put People First tip in the archives.
A person hired to give feedback on business operations and service. From the cleanliness of your restrooms to the greeting at the front door, anonymous Mystery Shoppers give an objective assessment on every aspect of the dining experience.
Income before interest expense and corporate overhead.
The point of purchase. A great place to influence impulse (high profit) purchasing decisions.
Sequence Of Servic(e)
A systemized approach to control interactions with restaurant guests.It begins the moment your guests enter the parking lot, and ends when they walk out the door. Training your staff to master the Sequence of Service can lead to increased sales and loyal customers. Want help? Check out the 10 Ways to Increase Your Average Check and 11 Ways to Keep Your Customers Coming Back training videos.
The portion of a product that can be utilized. Are you getting maximum yield from your products? Take a look in the garbage cans. Is there usable product being thrown away? Remember...high waste = high food cost. Want to know more? Check out the Trade Secrets Kitchen Systems Training Manual.
Ticket Turn Time
Elapsed time from entering an order to serving an order. A great way to measure kitchen and dining room efficiency. Remember, if you can measure it, you can manage it.
Uniform System Of Accounts For Restaurants
A preferred method of allocating income and expenses for restaurants. Available through the National Restaurant Association, the Uniform System of Accounts for Restaurants contains examples of balance sheet, wage-control reports and an expense-classification system. Using this system allows you to compare your "numbers" to national standards for restaurants and markets like yours.
It's the 80/20 theory on steroids. Typically, 70% of your expenses will come from just 3 categories on your Income and Expense statement