Restaurant Growth Glossary

The average amount spent each time a customer places an order at your restaurant. Calculated by dividing total revenue by the number of orders. Increasing AOV is a key strategy for boosting restaurant profitability without necessarily increasing customer count.

The average amount spent per customer during a visit. Similar to AOV but calculated on a per-person rather than per-order basis. Important for understanding spending patterns and the effectiveness of upselling techniques.

Buying produce straight from farmers instead of through mandi (APMC) agents; can trim costs and support farm-to-fork stories.

GST clause saying any tax-rate cut (e.g., 18 % → 5 %) must be passed to customers via lower menu prices; fines for non-compliance.

A small, complimentary appetizer served before a meal to showcase the chef's approach and stimulate the appetite. Often used in fine dining to enhance the customer experience and perceived value.

The distribution of limited or rare food and beverage products (like specialty wines) to restaurants. Important for establishments focusing on exclusive or premium offerings.

A restaurant format where food and beverages are served throughout the day, from breakfast to dinner, catering to diverse dining occasions under one roof.

Acquisition Cost per Guest is the total amount your restaurant spends to bring in one new customer. Tracking this number alongside Customer Lifetime Value tells you whether your marketing is actually growing the business profitably or just burning through budget.

Abandonment Rate is the percentage of customers who start building an online order but leave before paying. It is a key metric for any restaurant running direct ordering, an app, or a delivery platform because every abandoned cart is revenue that almost happened.