Culinary Sustainability – Vocabulary Definitions
A
- Additive: An ingredient added to enhance or preserve flavor, color, or texture in food, which may impact cost calculations.
- Allowance: A specified amount of ingredients or supplies set aside for a particular use, often factored into costing.
- Amortization: The process of gradually writing off the initial cost of an asset over its useful life, affecting financial statements.
- AP (As Purchased): The cost of food items before preparation or trimming, used in cost calculations.
- Allocation: Distributing costs across different departments or menu items to determine accurate pricing.
B
- Backflush: The process of accounting for inventory costs only after they are used in production, simplifying inventory management.
- Batch Cooking: Preparing large quantities of food in one go, which can affect cost efficiency and waste management.
- Beef Yield: The amount of usable meat obtained from a whole beef carcass, influencing meat cost calculations.
- Benchmarking: Comparing a restaurant’s performance metrics, such as food costs or labor costs, against industry standards or competitors.
- Beverage Cost Percentage: The ratio of the cost of beverages to the total sales of beverages, used to manage profitability.
C
- Break-even Point: The sales level at which total revenue equals total costs, resulting in neither profit nor loss.
- Budget: A financial plan outlining expected revenue and expenses over a specific period, guiding restaurant operations.
- Cost Analysis: The process of examining and evaluating costs associated with production and service to improve profitability.
- Cost Control: Techniques and procedures used to monitor and manage costs to ensure they stay within budgeted limits.
- Cost of Goods Sold (COGS): The total cost of ingredients used to prepare menu items, which affects food cost percentage.
- Culinary Yield: The amount of usable product obtained from raw ingredients after preparation, such as trimming or cooking.
D
- Direct Costs: Expenses that can be directly attributed to specific products or services, such as food and beverage costs.
- Discount: A reduction in price offered to customers or on bulk purchases, which can impact profitability.
- Diverted Costs: Expenses that are transferred or shifted from one area of operation to another, affecting overall financial management.
- Docket: A detailed list or record of food orders and their associated costs used for tracking and costing purposes.
E
- Economic Order Quantity (EOQ): The ideal order quantity that minimizes total inventory costs, including ordering and holding costs.
- Edible Portion: The part of a food item that is suitable for consumption after preparation, excluding waste and inedible parts.
- Excess Inventory: Inventory that exceeds current needs or demand, leading to potential waste and increased holding costs.
- Expense Ratio: The proportion of total expenses to total revenue, used to assess financial efficiency and control.
F
- Fixed Costs: Expenses that remain constant regardless of the level of production or sales, such as rent or salaries.
- Food Cost Percentage: The ratio of food costs to total sales, used to manage and control food-related expenses.
- Food Waste: The portion of food that is discarded or wasted, which impacts cost control and sustainability efforts.
- Forecasting: Predicting future sales and demand to plan inventory, staffing, and budgeting effectively.
- Fringe Benefits: Additional benefits provided to employees, such as health insurance or retirement plans, which can impact labor costs.
G
- Gross Profit: The difference between sales revenue and the cost of goods sold, representing the profit before operating expenses.
- Gross Profit Margin: The percentage of revenue remaining after subtracting the cost of goods sold, indicating profitability.
- Group Purchasing: The practice of purchasing supplies collectively with other businesses to obtain better prices and terms.
H
- Holding Costs: Expenses associated with storing inventory, including warehousing, insurance, and spoilage.
- Hourly Rate: The cost of labor calculated on an hourly basis, used for budgeting and payroll.
I
- Indirect Costs: Expenses that cannot be directly attributed to specific products or services, such as utilities or administrative costs.
- Inventory Turnover: The rate at which inventory is used and replaced over a specific period, indicating efficiency in inventory management.
- Invoice: A detailed statement of charges for goods or services provided, used for accounting and payment purposes.
J
- Just-in-Time (JIT): An inventory management strategy that aims to reduce holding costs by receiving goods only as they are needed.
K
- Key Performance Indicators (KPIs): Metrics used to evaluate the success of various aspects of restaurant operations, such as food cost percentage and labor cost percentage.
- Kitchen Labor Cost: The total cost associated with kitchen staff, including wages, benefits, and overtime.
L
- Leverage: The use of borrowed funds to increase potential returns on investment, which can impact financial stability.
- Loss Leader: A product sold at a loss to attract customers, with the intention of increasing overall sales.
M
- Margin: The difference between the selling price and the cost of goods sold, representing the profitability of a menu item.
- Markup: The amount added to the cost of a product to determine its selling price, used to achieve desired profit margins.
- Menu Engineering: The process of analyzing and optimizing menu items based on their popularity and profitability.
- Minimum Order Quantity (MOQ): The smallest quantity of a product that a supplier will sell, affecting purchasing decisions and inventory management.
N
- Net Profit: The total profit after all expenses, including operating costs, taxes, and interest, have been deducted from revenue.
- Nutritional Cost: The cost associated with providing nutritionally balanced meals, which can impact menu pricing and sustainability.
O
- Operating Expenses: The costs required to run a restaurant, excluding the cost of goods sold, such as rent, utilities, and salaries.
- Order Cost: The cost associated with placing and receiving orders, including transportation and administrative expenses.
P
- Par Level: The minimum amount of inventory needed to meet customer demand, used to manage ordering and reduce waste.
- Percent Yield: The percentage of usable product obtained from a raw ingredient, used to calculate food costs and portion sizes.
- Portion Control: The practice of managing and controlling portion sizes to maintain consistency and control food costs.
- Prime Cost: The combined cost of food and labor, representing the primary expenses associated with producing menu items.
- Product Cost: The total cost of producing a menu item, including ingredients, labor, and overhead.
Q
- Quality Control: The process of ensuring that food products meet specified standards and specifications to maintain consistency and reduce waste.
R
- Recipe Costing: The process of calculating the total cost of ingredients required for a recipe to determine menu pricing.
- Return on Investment (ROI): The measure of profitability relative to the investment made, used to evaluate the financial performance of projects.
- Restaurant Profit Margin: The percentage of profit relative to total sales, used to assess the financial health of a restaurant.
- Revenue: The total income generated from sales of goods or services before expenses are deducted.
S
- Sustainability: Practices aimed at minimizing environmental impact, conserving resources, and promoting long-term viability in food operations.
- Scrap: Unusable or waste material produced during food preparation, which can impact cost control and waste management.
- Sales Forecast: The prediction of future sales based on historical data, trends, and market analysis, used for budgeting and planning.
- Service Charge: An additional fee added to the bill for services rendered, which may affect overall revenue and customer satisfaction.
- Shrinkage: The loss of inventory due to factors such as theft, spoilage, or administrative errors, impacting financial performance.
- Standardized Recipe: A recipe with specific measurements and procedures designed to ensure consistency and control food costs.
- Supply Chain Management: The coordination of sourcing, purchasing, and logistics to ensure timely and cost-effective delivery of supplies.
T
- Tender: The process of making meat more palatable through techniques such as marinating or mechanical tenderization.
- Total Cost: The sum of all expenses associated with producing and delivering a product or service, including fixed and variable costs.
- Turnover Rate: The rate at which staff or inventory is replaced, impacting labor costs and inventory management.
U
- Unit Cost: The cost of producing a single unit of a product, including ingredients, labor, and overhead.
- Usage Rate: The rate at which inventory is consumed, used for managing stock levels and forecasting future needs.
V
- Variable Costs: Expenses that change in direct proportion to the level of production or sales, such as food and labor costs.
- Vendor: A supplier or seller of goods and services, whose pricing and terms affect cost management and procurement.
W
- Waste Management: The process of handling and reducing food waste, including disposal, recycling, and repurposing.
- Work-in-Progress (WIP): Inventory that is in the process of being prepared but is not yet finished, affecting cost calculations and inventory management.
Y
- Yield: The amount of product obtained from raw ingredients after preparation, affecting cost calculations and portion sizing.
- Yield Management: The strategy of optimizing pricing and inventory to maximize revenue and profitability based on demand.
Z
- Zero Waste: An approach aimed at reducing waste to the minimum by reusing, recycling, and composting materials.
