Restaurants 101

Menu Design

What Are the Different Types of Restaurants?

When you're opening a restaurant, one of the first things you want to do is define what type of a restaurant you want to be. By selecting your restaurant type...Read more

8 Questions to Ask Yourself Before Creating Your Restaurant Menu

What can I do really well? The first step to creating your menu is to ask yourself what cuisine you or your chef have the knowledge, skills, and techniques to...Read more

What is Price Elasticity in a Restaurant?

In the economy book definition of the word price elasticity is the measurement of how quantity demanded of a good will be affected by changes in its price. Price elasticity helps...Read more

What is a Loss Leader?

A loss leader is a concept that you will offer a product at cost, below cost, or just below the industry standard, so that you can attract new customers and/or...Read more

What is Table Turnover Ratio?

Table Turnover Ratio tells you how many times during any given service you are flipping tables - meaning how many times the table becomes occupied by a new party. If...Read more

What is Restaurant Revenue Per Seat?

Restaurant Revenue per seat is a figure in the restaurant business that tells you what is the average spending per seat at your restaurant. To determine what your revenue per...Read more

What is Prime Cost?

Prime cost in a restaurant is the cost of labor and the cost of food and beverage purchases. Unlike fixed costs, prime costs are costs that can be adjusted in order...Read more

What is Menu Engineering?

Menu engineering, also known as menu psychology, is a way to design a menu in order to push your most profitable dishes and up-sell to your guests. With the right...Read more

What is Menu Costing and Why is it Important?

Menu costing is an essential tool for restaurants because it helps determine whether a dish is profitable or not. Each dish on your menu will have it’s own unique food...Read more

What is Food Cost Percent?

Your food cost percent is defined as the percentage of your sales that you spend on food. This is an extremely important number as you can imagine, one of the...Read more

What is Cost Plus Pricing?

Cost plus pricing is a cost-based method that is used for setting the prices of goods and services. In the restaurant industry, cost plus pricing is the price of a dish,...Read more