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The percentage of revenue that remains as profit after all expenses are deducted. For example, if a restaurant has a revenue of $10,000 and total expenses of$7,500, its profit margin would be ($10,000 -$7,500) / $10,000 * 100$

The direct costs of producing the goods sold by a company. In restaurant management, this would include the cost of ingredients for meals sold. If ingredients for a dish cost $3 and the dish is sold 100 times, the COGS would be$3 * 100 = $300.$

Revenue minus the cost of goods sold (COGS). For a restaurant, if the revenue from sales is $10,000 and COGS is$3,000, the gross profit would be $10,000 -$3,000 = $7,000.$

Ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and insurance. For instance, if a restaurant pays $2,000 for rent and utilities, that's part of its overhead.$

The point at which total revenue equals total costs, resulting in no net loss or gain. For a restaurant, this can be calculated by dividing fixed costs by the average profit per customer less the variable cost per customer. If fixed costs are $5,000, the average profit per customer is$10, and the variable cost per customer is $3, break-even point =$5,000 / ($10 -$3).

A measure of how revenue growth translates into growth in operating income. A restaurant with high fixed costs compared to variable costs will have high operating leverage. If small increases in sales lead to large increases in profits, the operating leverage is high.

The total profit of a business after all expenses have been deducted from revenues. For a restaurant, if total revenues are $20,000 and total expenses are$18,000, the net income is $20,000 -$18,000 = $2,000.$

Financial metrics used to determine how easily a company can pay off its short-term debts with its current assets. In restaurant management, a common liquidity ratio is the Current Ratio, calculated by dividing current assets by current liabilities.

A ratio that shows how many times a company's inventory is sold and replaced over a period. For a restaurant, a high inventory turnover rate indicates efficient management of food stock. It is calculated as COGS divided by average inventory.

The combined costs of sales and the labor used in the sales. For a restaurant, prime cost includes COGS and payroll. If COGS is $4,000 and payroll is$6,000, the prime cost is $4,000 +$6,000 = $10,000.$

The selling price per unit minus the variable cost per unit. For a restaurant, if a dish is sold for $20 and the variable costs to make it are$8, the contribution margin is $20 -$8 = $12.$

A measure of the cash flow available to pay current debt obligations. In a restaurant, if net operating income is $50,000 and total debt service is$40,000, the DSCR would be $50,000 /$40,000 = 1.25.

A measure of the profitability of an investment as a percentage. For a restaurant, if it costs $100,000 to open and it earns$20,000 in profit in the first year, the ROI is ($20,000 /$100,000) * 100% = 20%.

A measure of a company's operational efficiency and short-term financial health. For a restaurant, if the current assets are $20,000 and the current liabilities are$15,000, the working capital is $20,000 -$15,000 = $5,000.$

Costs that vary with the level of output. In a restaurant, this could be the cost of food ingredients, which would increase as more dishes are prepared. If the ingredients for a dish cost $5, and 200 dishes are served, the variable costs are 200 *$5 = $1,000.$

Costs that do not change with the level of output. In a restaurant, fixed costs include rent, property taxes, and salaries for permanent staff. If monthly fixed costs are $10,000, this remains the same regardless of the number of customers served.$

The average amount of money spent by a customer in a restaurant. To find the average check, divide total revenue by the number of customers served. If a restaurant's total revenue is $15,000 and it serves 300 customers, the average check is$15,000 / 300 = $50.$

The total unadjusted income of a business before any costs or expenses are deducted. For a restaurant, the gross revenue would be the total amount of money earned from selling food and beverages before deducting expenses.

The percentage of gross revenue that goes towards paying staff wages. For example, if a restaurant has a gross revenue of $300,000 and a total payroll cost of$90,000, the payroll percentage is ($90,000 /$300,000) * 100% = 30%.

The portion of sales generated from food that goes towards the cost of the food ingredients. For example, if a restaurant had $5,000 in sales and it cost$1,500 in food costs, the food cost percentage is ($1,500 /$5,000) * 100% = 30%.

Earnings Before Interest, Taxes, Depreciation, and Amortization. EBITDA is a measure of a restaurant's operating performance. It can be calculated by adding back to net income the interest, taxes, depreciation, and amortization.

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. In a restaurant, positive cash flow means the restaurant is generating more cash than is used in its operations.

The allocation of the cost of a tangible asset over its useful life. For a restaurant, fixtures and kitchen equipment are depreciated over their useful lives to allocate the cost of the assets as an expense across the relevant periods.

The process of paying off debt with a fixed repayment schedule in regular installments. For a restaurant, this could refer to the systematic repayment of a loan used to fund the restaurant's opening or remodel.

Various sources from which a restaurant earns money, which include dine-in sales, takeout orders, catering services, or merchandise. Diversified revenue streams can reduce risk and increase overall revenue.

Funds used by a restaurant to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. This could include purchasing new kitchen equipment or renovating dining space.

The study and strategic manipulation of the profit and popularity of menu items. For example, analyzing the cost versus the sales data to determine which items to promote, revise pricing on, or remove from the menu.

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior. In a restaurant, this may involve offering early-bird specials during low-demand hours to increase sales.