Sandwich Shops, Bagel Shops, Sub Shops Industry Terminology

A/B Testing

A controlled experiment comparing two versions (A and B) of a variable—such as a menu layout, promotion, or app flow—to determine which drives better performance (e.g., conversion, average check, order accuracy).

We A/B tested two hero images on the sandwich category page and saw a 5% lift in clicks.; Let's A/B test the price on the turkey club to measure elasticity before we roll it out systemwide.


ADA Compliance

Meeting Americans with Disabilities Act requirements for accessible facilities and digital experiences (e.g., door widths, counter heights, restroom access, screen-reader friendly online ordering).

The new buildout meets ADA counter-height guidelines at the cash wrap.; Update the app’s color contrast to maintain ADA compliance for visually impaired guests.


Allergen Protocol

Standardized procedures to prevent allergen exposure, including labeling, separate utensils, dedicated prep space, allergen training, and guest communication.

Follow the allergen protocol—clean the make line and use fresh gloves before preparing a nut-free order.; Our allergen matrix is posted online so guests can check ingredients before ordering.


Average Check (Average Ticket)

Total sales divided by number of transactions; a key revenue metric indicating spend per order.

Suggestive selling chips and drinks lifted our average check from $11.20 to $12.05.; Delivery orders have a higher average ticket than dine-in, so we’ll target combo offers there.


Bagel Kettle (Boil-and-Bake)

Specialized kettle used to boil proofed bagels before baking, creating a shiny crust and chewy texture; core to authentic bagel production.

The kettle hit a rolling boil—start dropping sesame and everything bagels.; Our boil-and-bake schedule caps batches at 24 to preserve crust quality.


Baker’s Percentage

A formula expressing each ingredient’s weight as a percentage of flour weight (flour = 100%); essential for consistent dough hydration and scaling recipes.

We increased hydration from 58% to 62% to improve bagel crumb.; Convert the house roll recipe to baker’s percentages so commissary can scale it.


Batch Prep (Batching)

Producing ingredients in bulk (e.g., tuna salad, chicken salad, sauces) to PAR levels to improve efficiency and consistency.

Batch the chipotle mayo in 2-liter rounds to cover the weekend PAR.; Our batch prep window is 6–9 a.m. before the lunch rush hits the make line.


BOGO (Buy One Get One)

A promotion tactic offering a free or discounted second item to drive traffic, trial, and basket size.

We’re running BOGO breakfast bagels on Mondays to build morning daypart.; The BOGO coupon boosted footfall but compressed margins—let’s cap redemptions.


BOH (Back of House)

Non-guest areas focused on production and support (kitchen, prep, dish, storage, manager’s office).

Keep BOH aisles clear—delivery arrives at 10 a.m.; BOH labor is high; we’ll cross-train prep cooks for the make line.


Break-even Point

The sales level at which total revenue equals total fixed plus variable costs; no profit or loss.

At current rent and labor, our break-even is $9,800 per week.; Adding breakfast shifts lowers our break-even by spreading fixed costs.


CAPEX (Capital Expenditures)

Long-term investments in assets like ovens, kettles, slicers, HVAC, or build-outs; depreciated over time.

The new revolving deck oven is a $25K CAPEX with a 5-year life.; We’ll time CAPEX for the remodel to coincide with lease renewal.


COGS (Cost of Goods Sold)

Direct cost of ingredients and disposables used to produce menu items; a core driver of margin.

Switching to a private-label turkey shaved 90 bps off COGS.; Tighten portioning on avocado—overuse is inflating COGS.


Cold Holding

Keeping TCS (time/temperature control for safety) foods at or below 41°F/5°C to inhibit pathogen growth.

Verify cold holding on the salad prep cooler at every line check.; Move cream cheese to the top shelf to maintain cold holding during rushes.


Commissary Kitchen

A centralized production facility that prepares doughs, sauces, or proteins for distribution to multiple units, improving consistency and economies of scale.

The commissary mixes bagel dough daily and routes it to stores for proofing and bake-off.; Centralizing soup prep at the commissary cut waste and boosted quality control.


Contribution Margin

Sales price minus variable costs per item; helps prioritize profitable items and combos.

The Italian sub has a $5.10 contribution margin—push it in bundles.; We’ll drop the low-margin veggie wrap or reprice it to protect contribution.


CRM (Customer Relationship Management)

Systems and processes for capturing guest data, segmenting audiences, managing offers, and tracking lifetime value across channels.

Our CRM shows lapsed lunch guests—trigger a $2 off sandwich offer.; Integrate the CRM with POS so in-store redemptions sync to loyalty profiles.


Cross-Contamination

Transfer of harmful microorganisms or allergens from one surface, food, or utensil to another, risking foodborne illness or reactions.

Use color-coded cutting boards to prevent cross-contamination between deli meats and produce.; Label knives and tongs to avoid cross-contamination on the make line.


Cross-Utilization

Designing menus and prep so ingredients appear in multiple items, reducing waste, storage needs, and COGS.

We cross-utilize roasted peppers in the veggie sub, antipasto salad, and panini.; Add a pesto drizzle to boost cross-utilization of basil going into low-demand weeks.


Daily Prep List

A station-by-station checklist specifying items and quantities to prep based on PARs, forecasts, and daypart demand.

The opener prints the daily prep list at 6 a.m. and assigns tasks by station.; Revise the daily prep list—tomato usage jumped with the caprese LTO.


Delivery Aggregators (Marketplace Delivery)

Third-party platforms that list menus, process orders, and provide courier logistics (e.g., DoorDash, Uber Eats, Grubhub).

Aggregator fees are 20–30%, so we’ll optimize menu pricing and packaging.; Sync menu 86s to all delivery aggregators to prevent out-of-stock orders.


Dwell Time

The time a guest spends in-store, in the drive-thru, or engaging with a digital touchpoint; monitored to improve throughput and table turns.

Drive-thru dwell time climbed at the pay window—add a runner during lunch.; Reduce app dwell time by simplifying modifiers on the sandwich builder.


EBITDA

Earnings before interest, taxes, depreciation, and amortization; a proxy for operating performance and cash flow.

Commodity inflation compressed EBITDA margin 120 bps last quarter.; Franchise valuations typically reference a multiple of store-level EBITDA.


FDD (Franchise Disclosure Document)

A legally mandated document outlining franchise system details, fees, obligations, territories, and historical performance.

Review Item 19 in the FDD for unit economics before signing.; The FDD details remodel requirements and advertising fund contributions.


FIFO (First In, First Out)

Inventory rotation method ensuring older stock is used before newer stock to minimize spoilage and waste.

Rotate the lettuce—FIFO the new case behind the older one.; Date labels help enforce FIFO on sliced meats and sauces.


FOH (Front of House)

Guest-facing areas and activities including counter service, dining room, cashiering, and hospitality.

FOH needs a second cashier during the noon rush.; Tighten FOH scripts for greeting and suggestive selling.


Food Cost Percentage

COGS divided by food sales, typically tracked weekly; core measure of menu and portion control performance.

After the price reset, food cost percentage improved from 31% to 29.7%.; Over-portioning bacon is spiking food cost percentage—retrain the line.


FSMA (Food Safety Modernization Act)

U.S. regulatory framework shifting food safety from reactive to preventive controls, impacting suppliers and retail operations.

Our supplier’s FSMA plan includes environmental monitoring for Listeria.; Update our receiving SOPs to align with FSMA preventive controls.


Ghost Kitchen

A production-only facility without a public storefront, focused on delivery and virtual brands.

Launch the cheesesteak virtual brand out of the ghost kitchen to test demand.; Ghost kitchens reduce FOH overhead but require strong digital marketing.


HACCP Plan

Hazard Analysis and Critical Control Points plan that identifies food safety risks and establishes monitoring and corrective actions.

Log reheating temps per the HACCP plan for the meatballs.; Our HACCP identifies 165°F as the CCP for the chicken bake-off.


Holding Time

The maximum time a prepared item can be kept at safe temperature and quality before discard (e.g., cut tomatoes, cooked bacon).

Label the holding time on sliced turkey—discard after 72 hours.; Fries have a 7-minute holding time; drop smaller batches during slow periods.


Inventory Turnover

The number of times inventory is sold and replaced over a period; indicates purchasing discipline and freshness.

Aim for 30–35 turns annually on deli meats to maintain freshness.; Slow-moving SKUs drag down inventory turnover—rationalize the SKU mix.


KDS (Kitchen Display System)

Digital screens that replace paper tickets, sequence orders, flag bottlenecks, and integrate with POS and delivery platforms.

The KDS shows 12 orders in queue—add a second assembler.; Configure the KDS to split cold and hot stations for speed.


KPI (Key Performance Indicator)

Quantifiable metrics that track performance against targets, such as speed of service, average check, food cost, or labor percentage.

Our KPI for lunch speed is under 4 minutes ticket time.; NPS and repeat rate are KPIs for the loyalty program launch.


Labor Cost Percentage

Labor expense (wages, taxes, benefits) as a percentage of sales; monitored by daypart and position.

Labor percentage spiked to 33%—trim a mid-shift on Tuesday.; Cross-training improved productivity and lowered labor cost percentage.


LTO (Limited Time Offer)

A time-bound menu item or promotion designed to drive trial, urgency, and PR while testing new flavors or price points.

The pesto chicken LTO lifted traffic 4% during July.; We’ll use an LTO to test whole-grain bagels before adding them permanently.


Make Line

The assembly station where sandwiches and bagels are built, typically organized for flow: bread, spreads, proteins, cheeses, veggies, finishes.

Reset the make line layout—move tomatoes closer to the slicer.; Two-person make line staffing is required during peak lunch.


Menu Engineering

Analyzing item profitability and popularity to categorize as Stars, Plowhorses, Puzzles, or Dogs and adjust pricing, placement, or recipes.

Menu engineering shows the Italian sub is a Star—feature it top-left.; We’ll rework the tuna melt recipe; it’s a Puzzle with great margin but low orders.


Mise en Place

Having every tool and ingredient prepped and positioned before service to maximize speed and consistency.

Your mise en place should include pre-sliced tomatoes and portioned cheeses.; Service dragged because mise en place wasn’t complete at open.


Modifiers

POS options that customize orders (add-ons, no/extra, substitutions); impact pricing, prep, and kitchen routing.

Add paid modifiers for extra bacon and avocado to lift average check.; Map allergen modifiers to fire the separate prep station.


Mystery Shop

Anonymous evaluations of service, cleanliness, speed, and product quality to ensure standards compliance.

Our mystery shop score dropped on order accuracy—retrain the assembler.; Tie mystery shop results to quarterly manager bonuses.


Net Promoter Score (NPS)

A loyalty metric based on guests’ likelihood to recommend (promoters minus detractors), used to gauge satisfaction.

Post-launch NPS rose from 56 to 63—keep the new toasting profile.; Collect NPS via digital receipts to pinpoint low-satisfaction locations.


OLO (Online Ordering)

Systems that allow guests to order via web or app for pickup, curbside, or delivery; requires menu parity and accurate throttling.

Throttle OLO during peak to avoid overwhelming the make line.; OLO attachment rates improve when we feature bundles at checkout.


OSHA

Occupational Safety and Health Administration regulations that govern workplace safety (e.g., PPE, machine guarding, slips/falls).

Install cut-resistant gloves for slicer use to meet OSHA guidelines.; OSHA training reduced our recordable incidents by 40%.


PAR Levels

Target on-hand quantities for ingredients and supplies used to set prep amounts and reorder points.

Raise the cream cheese PAR for weekends by two sleeves.; Low tomato PARs are causing 86s—adjust for summer demand.


POS (Point of Sale)

Hardware/software that processes orders and payments, manages menus, taxes, discounts, and integrates with KDS, loyalty, and inventory.

Map combo pricing correctly in the POS to avoid discount stacking.; Our POS outage slowed orders—add a cellular failover.


QSR (Quick Service Restaurant)

A restaurant format optimized for speed, value, and convenience, with limited table service and high-throughput operations.

We operate as QSR at lunch with a streamlined menu and two cashiers.; QSR competitors are pushing value bundles—monitor price gaps.


RevPASH (Revenue per Available Seat Hour)

Sales divided by seat count and opening hours; measures how effectively seating capacity generates revenue.

Patio seating increased RevPASH by 12% during the dinner daypart.; Improve RevPASH by reducing dwell time and adding grab-and-go coolers.


ROI (Return on Investment)

The financial return relative to the cost of an investment, often expressed as a percentage.

The slicer upgrade paid back in 9 months—a 35% ROI.; We’ll model ROI on the loyalty relaunch before committing media spend.


Shrink

Losses from waste, spoilage, theft, or errors that reduce sellable inventory and profit.

Shrink on cheeses hit 3%—tighten portion control and dating.; Track shrink by category to isolate prep vs. pilferage issues.


Slicer Calibration

Adjusting and verifying deli slicer thickness settings to maintain portion accuracy and product quality.

Calibrate the slicer—our 2 oz turkey portions are reading heavy.; After calibration, the meat-to-bread ratio improved on the club sandwich.


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