Prime cost
Prime cost is an important indicator for restaurant owners and operators to track in order to determine profitability. It is the sum of your Cost of Goods Sold (CoGS) and labour costs, which together represent all direct expenses associated with creating a menu item or serving a customer. CoGS includes items such as food, alcohol […]
Product specification
A product specification document is an integral part of any food industry as it provides a comprehensive blueprint of the development, production and presentation of a menu item. It outlines all the details such as product name, description, shelf life, weight, ingredients, allergens, storage instructions, sensory properties (color, smell, taste and texture) and nutritional values. […]
Procurement
Procurement is a vital component of any business, and involves the sourcing, selection and acquisition of goods or services from external vendors. The procurement process begins with identifying potential vendors, followed by assessing and comparing their offers in terms of quality, cost-effectiveness and delivery timelines. Once an appropriate vendor has been chosen, negotiations must be […]
Purchase order (PO)
A purchase order (PO) is a document that is sent from the buyer to the seller to initiate an order transaction. The PO typically includes the item or service being purchased, the quantity and price of the item, payment terms, shipping information, and any other relevant details. It also allows both parties to keep track […]
Par level
Par stands for Periodic Automatic Replenishment and is a system used to ensure that businesses never run out of a specific product or overstock it. Par level involves setting both a minimum and maximum quantity limit for an inventory item, so that when the amount approaches the lower limit, the stock should be replenished, and […]
POS (also called EPOS in the UK)
POS (also known as EPOS in the UK) is a system comprising both hardware and software that enables businesses to process customer transactions, accept payments, and manage sales. This technology has become popularly used in retail stores, restaurants and other F&B establishments. Modern POS systems also come with additional features to help keep track of […]
Price Look-Up Code (PLU)
Price Look-Up (PLU) codes are a unique series of numbers that are used to identify specific items. By employing this system, retailers and food and beverage businesses can gain greater control over their inventories, making stock management faster, more accurate and efficient. PLUs are based on elements such as the type of commodity, variety, growing […]
Purchase-to-pay (P2P)
Purchase-to-pay (P2P) in the F&B industry is a process that streamlines and automates the way companies purchase goods and services, as well as pay their suppliers. The main objective of P2P is to create an efficient and effective process for managing spend, reducing costs and improving visibility into supplier relationships. P2P allows for a streamlined […]
Profit & Loss (P&L)
A Profit and Loss (P&L) statement is a financial report that summarizes the total sales, cost of goods sold (CoGS), and other expenses incurred by a business over a specified period. It outlines the net profit or loss for the business, as well as its financial health. The P&L statement can be used to assess […]
