Free reference
Restaurant technology glossary — plain-English definitions
The terms every independent owner keeps running into — on POS quotes, delivery-app statements, and P&Ls — defined in plain English, with the money angle spelled out. Each one is a short, quotable definition, then a page that goes deeper and links to the matching guide. Free to read, nothing gated.
What is a restaurant POS?
Operations. The system that rings up orders, fires kitchen tickets, takes payment and records every sale — the operational hub the whole restaurant runs through.
What is a delivery commission?
Ordering. The 15–30% cut apps like DoorDash and Uber Eats take on each order they bring — and why delivery can be busy and still unprofitable.
First-party vs third-party ordering
Ordering. Ordering on channels you own and keep the customer, versus marketplaces that own the diner and take a commission — the most consequential split in restaurant tech.
What is food cost percentage?
Cost & margin. Cost of food ÷ food sales — the share of every dollar spent on ingredients, and one of the fastest numbers an owner can actually move.
What is prime cost?
Cost & margin. Cost of goods sold plus total labor — the two biggest controllable costs combined, and the single number that best predicts profit.
What is average order value (AOV)?
Cost & margin. Total revenue ÷ number of orders — the average ticket, and one of the cheapest levers a restaurant has to grow revenue.
What is a chargeback?
Payments. A forced refund a cardholder's bank pulls back after a disputed charge — reversing the sale and usually adding a fee, at fault or not.
What is the effective processing rate?
Payments. Total card fees ÷ total card volume — the true, all-in cost of accepting cards, beyond whatever headline rate you were quoted.