Glossary: Essential Restaurant Technology Terms Explained

The restaurant industry has its own language—and restaurant technology adds even more acronyms and specialized terms. This glossary covers the most important concepts, explained clearly for restaurateurs and managers.

A

API (Application Programming Interface)

A technical interface that enables different software systems to communicate with each other. For example, if your POS system needs to send data to your accounting software, they require an API to exchange information. In integrated platforms like Vendion, fewer API connections are needed because all functions are already built into one system.

Automatic Stock Deduction

The process where the POS system automatically reduces inventory when items are sold. Sell a beer, and the stock decreases by one unit. Automatic deduction reduces manual work and provides better visibility into inventory levels and waste.

B

Blended Pricing (Card Payments)

A pricing model for card transactions where all fees (interchange, network fees, acquiring fees) are combined into a single percentage. Simpler to understand than Interchange++, though less transparent about individual cost components.

Bong System (Legacy)

A traditional kitchen system where orders are printed on paper tickets and sent to the kitchen. Being replaced by KDS (Kitchen Display System) in modern restaurants.

C

Certified Cash Register

In Sweden, tax authorities (Skatteverket) require all cash registers in cash-handling businesses to be certified and equipped with an approved control unit. The control unit logs every transaction to prevent fraud.

Cloud-Based System

Software that runs on internet servers rather than local installation. Advantages include access from any device, automatic updates, and no need for local server hardware. Vendion is a cloud-based platform.

Coursing

The kitchen process of synchronizing meal preparation so all courses for a table are ready and served at the correct time in the correct order. In KDS systems, coursing is managed automatically by coordinating different stations.

CRM (Customer Relationship Management)

A system for managing guest relationships. In restaurants, this means guest profiles containing visit history, preferences, and contact information—data used for marketing and personalized service.

D

Dashboard

A visual overview that consolidates key metrics and data in one place. A restaurant dashboard might display daily sales, table occupancy, labor costs, and product mix in real time.

Digital Tips

Tips handled through the POS system and card terminal instead of cash. Modern terminals can display tip suggestions at payment. Digital tips are automatically recorded and included in payroll calculations.

E

EFT (Electronic Fund Transfer)

Electronic transfer of funds, such as during card payments. The term sometimes describes the technical process behind card terminals.

Express Checkout

A self-service ordering point where guests register and pay their own order—via kiosk, tablet, or app. Also called self-service checkout or self-service kiosk. Vendion's express checkout is integrated with the POS and KDS.

F

Food Cost

The cost of ingredients as a percentage of the selling price, expressed as a percentage. Formula: Ingredient Cost ÷ Selling Price × 100. A healthy restaurant typically maintains food cost between 25–32% depending on the business type.

Food Cost Calculation

Determining the ingredient cost per dish. Includes all ingredients, waste, and portion size. The foundation for pricing decisions and menu optimization.

G

Guest Profile

A digital profile containing guest information: visit history, orders, preferences, allergies, and contact details. Automatically built in integrated systems where POS and Booking Systems share data.

H

Hreflang

An HTML tag that tells search engines a page exists in multiple languages. Important for restaurants with websites and blogs in both Swedish and English.

I

Interchange Fee

The fee charged by a guest's card-issuing bank on every card transaction. Regulated by the EU: maximum 0.2% for debit, 0.3% for credit cards.

Interchange++ (IC++)

A transparent pricing model for card payments where the interchange fee, network fee, and acquiring fee are itemized separately. Gives restaurants full visibility into what each component costs.

Integrated Platform

A system where all functions—POS, booking, staff management, online ordering, Analytics—are built as a single cohesive unit and share the same data. Opposite of using separate systems connected via integrations. Vendion is an example of an integrated restaurant platform.

Acquiring (Card Payment Processing)

The service that handles card payments and deposits funds into the restaurant's account. The acquirer charges a fee per transaction. Common acquirers in Scandinavia include Nets, Worldline, and Bambora.

K

KDS (Kitchen Display System)

A digital display screen in the kitchen showing incoming orders in real time, replacing paper tickets. KDS provides clearer communication, timing transparency, and automatic routing to different stations. Vendion's KDS is integrated with the POS and online ordering.

Kitchen Control Unit / Printer

A device connected to the POS register that logs every transaction. Mandatory in Sweden under Skatteverket regulations to prevent data manipulation.

L

Loyalty Program

A system that rewards returning guests—through points, punch cards, tiers, or exclusive offers. Digital loyalty programs connect to the POS and automatically track guest behavior.

M

Menu Engineering

Systematic analysis of menu profitability, where each dish is classified by popularity and margin. The four categories are typically: Stars (high margin, high popularity), Plow Horses (low margin, high popularity), Puzzles (high margin, low popularity), and Dogs (low margin, low popularity).

Mobile POS

A POS system running on a tablet or mobile device instead of a fixed terminal. Used in food trucks, outdoor service, and by roaming staff in restaurants.

N

No-Show

A guest who books a table but doesn't arrive and doesn't cancel. No-shows cost restaurants revenue and waste seating during peak hours. Strategies include SMS reminders, card guarantees, and waitlists.

O

OB Surcharge (Inconvenient Hours)

Extra compensation for work during evenings, weekends, and holidays in Sweden. OB costs can represent a significant portion of labor expenses and should be considered when scheduling.

Online Ordering / Digital Ordering

A system allowing guests to order food via website, app, or QR code—for takeaway, delivery, or table-side ordering. Vendion's online ordering is integrated with the POS and KDS.

P

POS (Point of Sale)

The international term for a cash register or sales system—the point where a transaction is registered. Often used synonymously with "cash register" or "till."

Prime Cost

The combined total of food cost and labor cost. The single most important key metric in the restaurant industry. A healthy restaurant keeps prime cost below 65% of revenue.

PAS (Personal Attendance Sheet)

In Sweden, mandatory logging for all food service establishments including restaurants and cafes. Must include employee name, personal number, and clock-in/clock-out times. Tax authorities conduct unannounced inspections with penalties for non-compliance.

Q

QR Ordering

An ordering system where guests scan a QR code (typically on the table) and order via their own phone. Orders go directly to the POS and KDS. Typically increases average check by 10–20% in most implementations.

R

RevPASH (Revenue Per Available Seat Hour)

Revenue per available seat per hour. The restaurant industry's equivalent of the hotel industry's RevPAR. Measures how efficiently you use your seating capacity. High RevPASH means tables are rarely empty during service.

Routing (KDS)

The function that automatically directs different parts of an order to the correct station in the kitchen. An order with both salad and steak sends the salad to the cold station and the steak to the grill station.

S

Scheduling / Staff Scheduling

Planning employee work hours. Digital scheduling connects the schedule to booking data and sales history to optimize staffing based on guest flow.

Self-Service / Self-Checkout

See Express Checkout.

SPA (Single Page Application)

A type of web application that loads all code on first visit and then updates the page dynamically. Provides fast user experience but can be more challenging for search engines to index.

Check Average / Average Bill

The average revenue per guest. Calculated: Total Sales ÷ Number of Guests. One of the most important metrics for revenue optimization.

Waste / Spoilage

Food that is discarded—due to overproduction, poor inventory management, expired goods, or plate waste. AI-based tools can reduce waste through better forecasting and purchase optimization.

T

Tab

An open bill that a guest accumulates during their visit and pays at the end. Common in bar settings. Can be opened with a card as a guarantee.

Takeaway / Takeout

Food a guest takes away instead of eating on-site. In Sweden, different VAT rates apply: 12% for dine-in, 12% for takeaway food, and 25% for takeaway beverages.

Time Tracking / Timekeeping

Recording when employees clock in and out, including break times. Compared against scheduled times to monitor overtime and calculate payroll.

U

Upselling

The technique of offering guests add-ons, upgrades, or complementary products. Can occur through staff ("Would you like fries with that?") or digitally via QR ordering and express checkout.

V

Vendion

An integrated restaurant platform built from the ground up as a unified system. Includes POS, table booking, staff management, online ordering, KDS, marketing, and AI analytics in one integrated solution. Developed in Sweden specifically for the restaurant industry.

Waitlist (Digital)

A feature where walk-in guests register and receive an SMS when their table is ready, instead of standing in a queue. Reduces lost guests and increases bar sales during wait times.

W

Walk-In

A guest who arrives without a reservation. The walk-in percentage varies by restaurant—from 20% on busy weekend nights to 80% on weekday lunches.

Y–Z

Age Verification

Checking a guest's age when serving alcohol. Cannot be automated via POS system, but some systems can set reminders for alcohol sales.

Opening Hours (Google)

The business hours you list in Google Business Profile. Incorrect hours are one of the most common mistakes and lead to frustrated guests. Always update when hours change, including holidays.