Prime cost

Prime cost is the sum of your Cost of Goods Sold (CoGS) and your labour costs. Restaurant CoGS includes food, alcohol & other beverages, packaging, plus all other expenses related to the preparation and serving of the items on your menu. Learn more about restaurant KPIs.

Product specification

A product specification is a blueprint to a product, listing all the information on how the product is built, what it should look like, and how it should perform.  In the food industry, a product specification document describes all the requirements for developing a finished product (aka a menu item). Typically, it includes attributes and […]

Procurement

Procurement refers to the process of sourcing and buying goods or services from a third-party vendor. The procurement process includes identifying, selecting, negotiating a price, collecting samples, and acquiring the product or service. A proper procurement strategy is crucial to ensure your business receives quality materials and to cut (food) costs.

Purchase order (PO)

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc nec urna congue, tempus metus auctor, laoreet massa. Fusce vel erat congue, molestie eros et, vulputate neque. Interdum et malesuada fames ac ante ipsum primis in faucibus. Etiam tristique, leo vitae suscipit finibus, felis neque tempor nibh, eget cursus justo purus laoreet diam. Donec tincidunt lectus […]

Par level

Par stands for Periodic Automatic Replenishment. The par level system is used to ensure businesses don’t run out of products or order too much of a specific item. The par level is the minimum and maximum quantity limit for a specific inventory item. When the amount of an inventory item approaches the minimum level, the […]

POS (also called EPOS in the UK)

Short for point of sale, a POS is a system that combines both hardware and software to process customer transactions, accept payments, and keep track of sales. It is used mainly in retail and in the F&B sector. While POS systems were traditionally used to serve the single purpose of handling transactions and payments, modern […]

Price Look-Up Code (PLU)

Price Look-Up codes are unique number combinations that are used to identify products. The PLU code identifies items based on elements like commodity, variety, growing method, size group, etc. Retailers and food and beverage businesses use this system to make inventory control easier, faster, and more accurate.

Purchase-to-pay (P2P)

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc nec urna congue, tempus metus auctor, laoreet massa. Fusce vel erat congue, molestie eros et, vulputate neque. Interdum et malesuada fames ac ante ipsum primis in faucibus. Etiam tristique, leo vitae suscipit finibus, felis neque tempor nibh, eget cursus justo purus laoreet diam. Donec tincidunt lectus […]

Profit & Loss (P&L)

A Profit and Loss statement is a financial report that summarizes the sales (collected in the POS) and expenses (CoGS) of a business incurred during a specific period.