Essential Words Every Restaurant, Café, or Food Stall Owner Should Understand

Running a restaurant involves more than just preparing great food—it also means understanding the terms and systems that keep your business running efficiently.

If you’re a first-time business owner, a growing food entrepreneur, or someone new to operations, this guide will walk you through the most common restaurant terms—especially the ones related to POS systems, inventory, and profitability.

At Orderna, we believe every food business owner should feel confident in how they manage their restaurant. Here’s your go-to glossary to get started:

Common Restaurant & POS Terms (Philippines Edition)

1. POS (Point of Sale)

A POS system is the technology that records sales and transactions. Modern POS systems, like Orderna, go beyond sales—they also track inventory, support digital payments (GCash, Maya, QR PH), manage staff, and provide business reports.

2. COGS (Cost of Goods Sold)

COGS refers to the total cost of ingredients or materials used to produce the items you sell. It's essential for calculating profit margins.

Example: If a chicken burger costs ₱70 to make and you sell it for ₱150, your profit is ₱80 before overhead costs.

3. Inventory Management

This is the process of tracking and controlling the ingredients and supplies your business uses daily. With Orderna, you can automate inventory tracking so each sale deducts the right items from your stock.

4. Modifiers

These are customizations added to menu items (e.g. “no sugar,” “extra cheese,” “spicy”). Orderna lets you add modifiers directly on the order screen, helping kitchen staff serve customers accurately.

5. Kitchen Display System (KDS)

A digital screen in the kitchen that shows orders in real time. It replaces paper tickets and helps reduce mistakes. Orderna supports KDS integration for faster, more accurate food prep.

6. Turnover Rate

This can refer to two things:

• Staff Turnover: How often employees leave and need to be replaced.

• Table Turnover: How many times a table is used per shift. Increasing table turnover without rushing customers can boost your revenue.

7. Upselling

Encouraging customers to purchase more or higher-value items (e.g. upgrading to a large drink or adding a dessert). Orderna can help with on-screen prompts during checkout to remind staff of upsell options.

8. Void / Refund

A void is canceling a transaction before it’s completed. A refund is returning money after a transaction. Orderna logs each one and tags them to the employee, improving accountability.

9. Gross vs. Net Sales

• Gross Sales: Total sales before any discounts or refunds.

• Net Sales: Sales after subtracting discounts, voids, and refunds.

Orderna’s reports break these down so you see exactly what you’re earning.

10. Split Payment

When a customer pays using two or more methods (e.g. part cash, part GCash). Orderna allows for quick split payments to speed up checkout and improve customer satisfaction.

11. Loyalty Program

A system that rewards customers for repeat visits. With Orderna, you can automatically track customer purchases and apply rewards without using paper stamp cards.

12. Table Management

This involves organizing how tables are assigned, turned over, and served. While more common in dine-in restaurants, even small cafés can benefit from a system that keeps track of table numbers and orders.

13. Overhead Costs

These are recurring costs not tied to food production—like rent, utilities, salaries, and packaging. Knowing your overhead is crucial for pricing your menu correctly.

14. Prep Time / Order Completion Time

Used to track how long it takes to prepare and serve food. Orderna lets you monitor this via timestamps on kitchen orders—helping you improve service speed and efficiency.

15. Low Stock Alert

A notification that tells you when an item is running low. With Orderna, you can set alerts so you never run out of key ingredients during peak hours.

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Final Thoughts

Understanding these terms is the first step to running your restaurant like a pro. Whether you're managing a food stall, café, or full-service restaurant, these keywords will help you:

✔ Communicate better with your team

✔ Improve your day-to-day operations

✔ Make smarter business decisions

With Orderna, you don’t just get a POS system—you get a complete solution designed for Filipino food entrepreneurs. From sales tracking to inventory to staff performance, Orderna helps you run your business with clarity and confidence.