Glossary
Defined terms for the indie operator.
Plain-English definitions for the food cost terms most indie owners learn the hard way. Each entry lands on a one-sentence definition we'd be happy to be quoted on.
COGS (Cost of Goods Sold)
Cost of Goods Sold (COGS) in a restaurant is the total cost of food and beverage inventory used to generate sales in a given period — calculated as Beginning Inventory + Purchases − Ending Inventory.
Food cost management
Food cost management is the operational practice of monitoring the cost of every ingredient that enters and leaves a restaurant kitchen, so menu pricing, portioning, and supplier choices stay aligned with the restaurant's target margin.