The Essential Foodservice Glossary: 40 Terms Every F&B Innovator Should Know
The foodservice industry is experiencing a significant transformation. In 2023, U.S. restaurant and foodservice sales surpassed $1 trillion for the first time, with projections reaching $1.1 trillion in 2024 . This growth is fueled by evolving consumer behaviors, including a preference for delivery-focused dining experiences and the rise of digital ordering platforms.
For CPG brands looking to break into foodservice, understanding the language of the industry is the first step toward real impact.
That’s why we’ve created this glossary—your go-to guide for decoding the key terms shaping foodservice today. Want a deeper dive? Our Foodservice Guide offers a full toolkit for navigating menus, delivery platforms, and brand visibility.
The Foodservice Glossary
Below, you’ll find a curated glossary that not only defines essential foodservice terms but also highlights how they’re evolving with technology, consumer demand, and new business models.
Operator
A decision-maker at a foodservice establishment—typically a chef, general manager, or owner—responsible for purchasing, menu decisions, and supplier relationships.
Non-commercial Foodservice
Refers to institutions like schools, hospitals, military bases, and corporate cafeterias. Unlike restaurants, these serve food as a secondary function and often operate on fixed budgets and slower innovation cycles.
White Space Opportunity
A data-driven method of identifying gaps in a market or menu where there is consumer interest but limited current offering—valuable for guiding CPG entry or innovation.
Delivery Platform Marketing
The use of third-party delivery apps for paid promotions, combo deals, or spotlight placements. While effective for reach, these tactics can compress profit margins.
Sales Enablement Tools
Platforms like Telus and Salesforce that, when integrated with foodservice insights, help sales teams target operators more effectively by mapping distributor data to menu visibility.
Kitchen Display System (KDS)
Used in fast-paced environments like quick-service restaurants and ghost kitchens, KDS screens streamline back-of-house operations by digitally managing orders. Integrated with POS and online ordering tools, modern KDS systems now support real-time ticket tracking, food prep timing, and even AI-powered load balancing.
Inventory Turnover
This metric shows how efficiently inventory is sold and replaced. It’s calculated by dividing the cost of goods sold (COGS) by average inventory. Operators use tools like restaurant inventory software or POS analytics to monitor this, especially critical as supply chain volatility affects stock predictability.
Food Cost Percentage
A cornerstone of profitability. This percentage compares the cost of ingredients to menu price, guiding pricing decisions. Operators aim for a sweet spot (often 28-35%) using automated recipe costing tools to stay precise and competitive.
Point of Sale (POS) System
More than a cash register—today’s POS integrates with online ordering, staff management, loyalty programs, and data analytics. Mobile POS systems are also expanding access for smaller operators and pop-ups.
Food Truck POS
Specifically built for mobile operations, these systems must offer offline functionality, mobile connectivity, and rugged hardware. Look for integrations with location-based marketing and pre-ordering tools to stay competitive on the street.
Plate Cost
The total ingredient cost for a dish. In an inflationary economy, knowing your plate cost supports smart pricing and bundling strategies. Tools that automate this process also flag cost increases in real-time.
Menu Engineering
This is the art and science of designing menus that sell. Using data on dish popularity and profit, operators classify items (e.g., stars, puzzles, dogs) and reorganize layout and language accordingly.
Menu Innovation
The practice of introducing new dishes, flavors, or formats to a menu. Can serve strategic goals like refreshing the brand, improving margins, or responding to ingredient availability or health trends.
Menu Psychology
Tactics like anchor pricing, descriptive naming, and the strategic use of “decoys” help guide customer decisions. Combined with data insights, this practice can elevate both average spend and guest satisfaction.
Menu Pricing
With inflation and price sensitivity top of mind, dynamic pricing tools are gaining traction. Some restaurants are even using real-time data to adjust menu prices based on demand or time of day.
Menu Optimization
The process of using data—like dish popularity, prep time, and delivery performance—to refine menu offerings. Helps reduce complexity while boosting profitability.
Plant-Based Menu
A staple of modern dining. Now includes innovation like fermented plant proteins, whole-food alternatives, and globally inspired dishes designed to appeal beyond vegan audiences. Over 94,422 restaurants on the Tastwise data platform offer plant-based menus.
Farm to Table
Beyond just sourcing locally, the latest wave includes transparency in origin stories, regenerative farming practices, and even live-farm tracking for premium dishes. It’s as much about storytelling as sourcing.
Zero Waste Cooking
Driven by both ethics and economics, this technique reduces food waste through root-to-stem cooking, smart prep, and upcycling. Expect to see it paired with sustainability branding on menus.
Restaurant Profit Margin
This metric accounts for all costs—labor, rent, ingredients—to show real profitability. The average margin hovers around 3–6%, but tech-driven operators are squeezing out more by improving table turns and reducing food waste.
Food Plating
A driver of social media engagement. From vertical stacking to color theory, the latest plating trends reflect both visual appeal and efficiency—especially in high-volume or delivery-first formats.
LTO (Limited Time Offer)
LTOs are a promotional menu item available for a short period. Common in foodservice marketing to drive urgency or test new concepts, but often scrutinized for its impact on profit margins.
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Restaurant Management Software
End-to-end platforms are becoming the backbone of operations, consolidating POS, labor management, scheduling, and reporting. Cloud-based systems enable real-time decisions from anywhere.
Online Ordering System
Vital for delivery-focused consumers. These platforms now support AI upselling, menu optimization, and integrations with loyalty programs—transforming the digital storefront into a profit center.
Pricing Strategy
A critical component of menu planning, particularly in inflationary times. Involves balancing perceived value with ingredient costs, LTOs, and competitive positioning.
Food Cost Control
Tactics and tools used to monitor and manage food expenses, often involving recipe costing, waste reduction, and supplier negotiation. Essential for maintaining margins in foodservice.
Recipe Costing
Digitally tracking the cost of each ingredient in a recipe enables accurate margin tracking and supports consistent pricing—even when supplier costs fluctuate.
Restaurant KPI
Key Performance Indicators vary by model but often include average check size, table turnover, labor cost %, and guest satisfaction scores. Dashboards now integrate these for real-time oversight.
Batch Cooking
Used in catering, meal kits, and delivery-heavy formats, batch cooking ensures consistency while optimizing labor. It’s often paired with vacuum sealing and portion control systems.
Ghost Kitchen
Delivery-only kitchens designed for scale. Some house multiple brands, while others license virtual brands. Data-driven demand forecasting is key to optimizing menus in these spaces.
Commissary Kitchen
Shared kitchens that offer professional-grade equipment to food trucks, startups, and pop-ups. Many are now bundled with business services and delivery support.
Contactless Payment
This tech is now expected. The latest systems integrate with POS, loyalty programs, and digital receipts to streamline checkouts and reduce friction.
Food Runner
An essential link in high-volume settings, food runners are being trained on guest engagement and timing precision, especially in restaurants using hybrid service models.
Dry Storage
Not just shelves anymore—modern dry storage is often monitored with IoT sensors for temperature and humidity to preserve ingredient quality and compliance.
Service Charge vs Tip
As wage structures evolve, service charges are becoming more common. Operators must clearly communicate these to maintain transparency and manage guest expectations.
QR Code Menu
Standard in post-COVID dining. Many now offer dynamic features like real-time updates, allergy filtering, and integration with POS for self-service ordering.
Tip Pooling
Used to distribute earnings more equitably across teams, especially when FOH and BOH collaboration is key. Clear policies and communication are vital to its success.
Food Safety Audit
Routine checks to ensure compliance with health regulations. Digital audit tools are reducing paperwork and increasing accountability in large or multi-location setups.
Holding Temperature
Maintaining safe temperatures for hot and cold food is critical for compliance and quality. Infrared thermometers and smart sensors help automate this process.
Table Turnover Rate
A high turnover rate indicates operational efficiency. POS integrations and host stand analytics help optimize seating and reduce wait times without compromising service.
Third-Party Delivery Integration
Connecting with services like Uber Eats and DoorDash is essential for modern operations. Seamless tech integration ensures consistency across channels and influences how the foodservice menu evolves to meet off-premise expectations.
Conclusion
Whether you’re managing a restaurant, building a delivery-first brand, or exploring how to bring your CPG product into foodservice, understanding this glossary will help you speak the language of modern F&B. These aren’t just buzzwords—they’re the building blocks of agility, innovation, and consumer connection.