- ADR (average daily rate)
- Room revenue divided by rooms sold. The pure price metric — it says nothing about how many rooms went unsold.
- Occupancy
- Rooms sold divided by rooms available. Chasing occupancy alone is the classic way to buy volume with discounted rate and end up with less revenue.
- RevPAR
- Revenue per available room — ADR multiplied by occupancy, or room revenue divided by rooms available. The industry's headline performance number because it prices rate and volume together.
- RevPAR index / comp set
- A property's RevPAR against a self-selected competitive set, indexed to 100 (also called the STR index or MPI/ARI/RGI family). Above 100 means capturing more than a fair share. Choosing the comp set honestly is half the exercise.
- GOPPAR
- Gross operating profit per available room. Owners increasingly judge on GOPPAR rather than RevPAR because it exposes what a discounted, high-cost booking actually contributed.
- TRevPAR
- Total revenue per available room — rooms plus F&B, spa, parking and other outlets. The metric that makes food and beverage visible in a property's performance rather than treating rooms as the whole business.
- Rate parity
- A distribution requirement that a hotel not undercut the OTA's published rate on its own site. Loyalty-member rates, packages and unpublished offers are the standard levers for beating an OTA price without breaching parity.
- OTA commission
- The 15-25% (sometimes higher on preferred placement) an online travel agency takes on a booking. It is the largest single acquisition cost most hotels pay and the entire economic argument for direct booking.
- Direct booking
- A reservation made on the hotel's own site, phone or app, with no intermediary commission. Costs less, produces guest data and email consent the OTA otherwise keeps, and is the metric a book-direct campaign is judged on.
- BAR (best available rate)
- The publicly published, non-qualified rate for a date — the reference price every discount, package and negotiated rate hangs off. BAR-by-length-of-stay and BAR-by-day pricing are the common refinements.
- Group vs transient
- Group is contracted block business (meetings, weddings, teams, tours); transient is individual bookings. They price, pace and cancel differently, and the mix between them drives nearly every revenue-management decision.
- Room block
- A set of rooms held for a group at a negotiated rate until a cutoff date, after which unsold rooms return to general inventory. Blocks are sold months or years ahead, which is why group pace is a leading indicator.
- Attrition clause
- The contract term making a group pay if it fills less than an agreed share of its block — commonly 80% — protecting the hotel for rooms it held and could not resell. The cancellation clause is its all-or-nothing cousin.
- F&B capture rate
- The share of in-house guests who eat or drink on property. Low capture means guests are walking to competitors' restaurants; raising it is usually cheaper than raising occupancy.
- RFP season
- The annual cycle, typically running through the second half of the year, when corporate travel buyers and meeting planners solicit negotiated rates and event proposals for the following year. Missing it costs a hotel a year of corporate volume.
- Brand standard
- The operating, design and service specifications a franchised or managed property must meet — bedding, breakfast, signage, technology, service scripts. Compliance is audited, and failure can put the license at risk.
- Franchise vs management agreement
- Under a franchise the owner licenses the brand and runs the hotel; under a management agreement an operator runs it for a fee. The choice determines who controls staffing, pricing and marketing, and who carries the risk.
- PIP (property improvement plan)
- The capital work a brand requires at franchise renewal, change of ownership or conversion — often the single largest expense in a hotel deal and a common reason owners switch flags or go independent.
- LOS (length of stay)
- Nights per booking. Longer stays cut per-night servicing and turnover cost, so minimum-stay and LOS-based pricing are used to shape demand around compression dates.
- Walk
- Relocating a guest with a confirmed reservation to another hotel because the property is oversold. Expensive, reputationally costly, and the reason overbooking is modeled rather than guessed.
- Prime cost
- Cost of goods sold plus total labor, the restaurant's two controllable giants. Full service typically targets around 60-65% of sales; above that, no marketing plan fixes the P&L.
- Food cost percentage
- Food cost divided by food sales. Watched weekly rather than monthly, because a two-point drift on a high-volume item is invisible in a monthly close and expensive by quarter-end.
- Labor cost percentage
- Total labor including taxes and benefits as a share of sales. Managed by scheduling to a forecast, cutting or extending shifts against real-time sales, and knowing the minimum staffing a shift genuinely needs.
- COGS
- Cost of goods sold — beginning inventory plus purchases minus ending inventory. It requires an actual count; purchases alone are not COGS, which is the most common bookkeeping error in small restaurants.
- Menu engineering
- Scoring every item on popularity and contribution margin to sort it into stars, plowhorses, puzzles and dogs, then redesigning the menu to sell more of what makes money. The highest-leverage no-spend improvement available to a restaurant.
- Contribution margin per item
- Menu price minus plate cost — the dollars an item contributes, not its percentage. A 32% food-cost steak can out-earn an 18% pasta on every plate sold, which is why margin dollars beat food-cost ratio in menu decisions.
- Plate cost
- Fully costed ingredients for one portion, including garnish, sauce, oil and trim loss. Built from a standardized recipe, and only as accurate as portion control on the line.
- Yield
- Usable product left after trimming, cleaning and cooking, expressed as a percentage of as-purchased weight. Costing from purchase price instead of yield price systematically understates the true cost of proteins and produce.
- Waste
- Product lost to spoilage, over-prep, overproduction, mistakes and theft. Tracked with a waste log because untracked waste always turns up later as an unexplained food-cost variance.
- Covers
- Guests served in a period — the restaurant's unit of volume. Covers by daypart and day-part-hour is the demand curve staffing, prep and reservation inventory are all built against.
- Turn time
- Minutes a table is occupied from seating to reset. Shaving ten minutes off an average turn on a full Saturday adds real covers without another seat, which is why pacing, pre-bussing and payment speed are revenue tools.
- PPA (per-person average)
- Sales divided by covers — spend per guest. The cleanest measure of upselling, menu mix and beverage attachment, because it is unaffected by party size.
- Check average
- Sales divided by checks, i.e. per ticket rather than per guest. Useful for tracking ticket growth, but PPA is the fairer comparison across shifts with different party sizes.
- Comps and voids
- A comp is an item rung in and given away; a void removes an item before it was made. Kept separate because comps are a real cost of goods and a service-recovery signal, while a rising void rate is usually a training or theft flag.
- Front of house vs back of house
- FOH is hosts, servers, bartenders and the dining room; BOH is kitchen, prep, dish and receiving. The split drives scheduling, tip structure, training and most of a restaurant's internal politics.
- Tip credit and tip pooling
- Tip credit lets an employer count tips toward the minimum wage and pay a lower cash wage — $2.13 federally, the rule Texas follows. Tip pooling redistributes tips across a defined group; who may share, and whether managers may ever participate, is tightly regulated.
- Health inspection score
- The local health department's graded result, published in most jurisdictions and increasingly surfaced on search and review platforms. It is public marketing whether an operator treats it that way or not.
- TABC permit
- The Texas Alcoholic Beverage Commission license required to sell alcohol in Texas, with permit type, food-to-alcohol sales ratio, seller-server certification and location rules attached. In Austin it is a gating item on any opening timeline.
- Ghost kitchen
- A delivery-only production kitchen with no dining room, often hosting several virtual brands. Cheap to launch and easy to duplicate, which is exactly why so many closed once marketplace demand and promotional subsidies normalized.
- Third-party delivery commission
- The 15-30% marketplace platforms charge on a delivered order, plus promotion and advertising fees. On a normal restaurant margin it can turn a full-price order into a break-even or losing one unless the menu is priced for the channel.
- First-party ordering
- Online orders taken on the restaurant's own site or app, using its own or a white-label delivery network. Keeps the margin and — more valuable long term — the customer's contact data and order history.
- Loyalty program
- Points, visit-based rewards, a subscription or a plain email and SMS list. In hospitality the mechanic matters less than the data: an identified repeat guest can be marketed to for near zero acquisition cost.
- Reservation no-show
- A booked party that never arrives, leaving a table dark at peak. Managed with confirmations, credit-card holds, deposits or ticketed seatings, and measured as a rate rather than absorbed as bad luck.
- Waitlist
- Managed queue for walk-ins with quoted times and SMS paging. Accurate quotes and honest pacing preserve both the guest experience and the cover count on a busy night.
- Catering minimum
- The floor spend a private event or catering order must hit — food-and-beverage minimum, guest-count minimum or room fee. It protects the labor and space committed to an event that displaces regular covers.
- BEO (banquet event order)
- The single controlling document for an event: timing, guest count, menu, setup, staffing, AV, pricing and billing, signed by the client. If it is not on the BEO it does not happen — and it is not billable.