Covers, The number of guests served., direct operating expenses, Costs associated with providing customer service., full-service restaurant, A restaurant that offers full table service., general and administrative expenses, Expenses necessary to operate the business but not directly associated with guests., labor expense, The amount paid in wages to employees plus the cost of benefits., limited-service restaurant, A restaurant that does not offer full table service and does not necessarily even offer a seating area., net beverage cost, The cost of sales for beverages., non-controllable expenses, Primarily fixed costs not affected by sales volume., net food cost, The cost of sales for food., officers' checks, The cost of meals consumed by senior employees, such as executives and department heads, who have dining room privileges., periodic inventory system, No inventory records are maintained. To get a proper cost of sales, a physical inventory is required., perpetual inventory system, Every receipt and issue from the inventory is recorded., prime cost, The sum of the total cost of sales and the total labor cost., sales mix, The relationship of a sales item to total sales; usually expressed as a percentage., seat turnover, The number of times a seat is occupied by a paying customer during a meal period., service charge, A separate charge on a customer’s tab in lieu of tips.

Chapter 9

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