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.