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Front-of-house (FOH)

The front of house (FOH) refers to the customer-facing areas of a business that directly interact with guests and customers. These may include the dining room, where customers can peruse menus and order food; the customer waiting area, for comfortable seating between courses; the bar, for an after-dinner beverage or late-night snack; the restrooms, for […]

Food franchise

A food franchise is a type of business that allows an individual (the franchisee) to operate a restaurant under the branding and oversight of the much larger franchisor. This arrangement gives the franchisee access to the franchisor’s name, trademarks, and business model in exchange for a portion of their sales revenue. Several well-known multinational restaurant […]

Food cost variance

Food cost variance is a measure of difference between the expected and actual food costs incurred during a given period. Theoretical food cost is calculated based on the amount of food sold within that period, while actual food costs are further adjusted to factor in wastage, shrinkage, inventory errors or accounting mistakes. Measuring and tracking […]

Food cost percentage

Food Cost Percentage is an important metric for restaurants to measure how profitable their operations are. It represents the ratio of ingredients used to generate revenue divided as a percentage. Generally, a restaurant’s Food Cost Percentage should be between 28 and 35% of its total revenue in order to remain profitable. To calculate this number, […]

Food allergen management

Food allergen management is a documented system that restaurants and other food businesses should establish in order to effectively identify, control and communicate the presence of allergens in their recipes. It is essential for staff to be trained on handling ingredients which may cause allergic reactions, such as peanuts or shellfish, so customers can make […]