Glossary of Useful Terms (Part 1)

Tip 1: Look into procurement and inventory management systems to help monitor your inventory levels. This will ensure minimum waste and reduce cost of goods sold!

Tip 2: Make better use of your space. For instance, if some staff need constant access to items like the fridge, ensure their workstations are positioned nearby. Keep servers who plate dishes near the serving area – small steps to improve the smoothness and in turn efficiency of operations. And, consult RAS for their 5S programme that seeks to maximise space!

Tip 3: Look at your service model and store management structure to see what can be improved with automation. Technology like iPads to automate queuing or payment can help speed things up, and also reduce your reliance on manpower.

Confused about all the terms thrown out on websites and by your fellow F&B entrepreneurs? Part 1 of our glossary of terms should help you out!

Let’s start with three main areas F&B businesses need to look into

  • Menu engineering:
    the study of the profitability and popularity of menu items. The goal is to design the menu to increase profitability per customer.
  • Lean workflow:
    a system that minimises waste and increases productivity. These can be measured by some of the metrics below.
  • Seat turnover:
    the number of times a seat is occupied by a customer throughout the course of a day
  • Occupancy ratio:
    how efficiently you are using space. Take the total number of customers you have in a day, divide it by the seat turnover, and then divide it by the number of seats to get the occupancy ratio. The higher, the better.
  • Average check:
    the average of how much each diner spends in the F&B outlet.
  • Percentage of dine-in customers:
    how many customers eat in the F&B outlet, compared to those who take-away food.
  • Customers per check:
    the average size of each group that comes into the F&B outlet.