Vento
How it worksBusiness as usualPricing
GuidesRunning operations across multiple locationsGlossaryRestaurant operations terms, definedFAQHow Vento works, setup, and pricingIntegrationsThe systems Vento connects toResultsWhat restaurant groups get with Vento
EspañolBook a demo

Glossary

Restaurant operations glossary

Last updated: July 7, 2026

This glossary defines the operating numbers that decide restaurant margin, from prime cost and food cost percentage to vendor price creep and contribution margin. Each term is explained in plain English, with a real-world example and how multi-unit groups keep it under control across every location.

Cost and margin fundamentals

  • Prime Cost
  • Food Cost Percentage
  • Labor Cost Percentage
  • Cost of Goods Sold (COGS)
  • Contribution Margin

Purchasing and suppliers

  • Vendor Price Creep
  • Invoice Line-Item Auditing
  • Purchase Price Variance (PPV)
  • Par Level

Menu and pricing

  • Menu Engineering
  • Plate Cost

Cost variance and analysis

  • Theoretical vs. Actual Food Cost
  • P&L Variance Analysis

See how Vento tracks these numbers automatically across every location.

Book a demo
Vento© 2026 Vela Payments, Inc. All rights reserved. San Francisco, CA.
Privacy PolicyTerms of Service