Appendix

A

Glossary

added value Characteristic of a product or service that has exceeded the customer’s expectations by providing something more at little or no cost.

aspirational A product or service a user believes has positive characteristics, inspiring a strong desire to obtain or to associate with it.

assembly line The process in which parts are added to a product in sequence.

average cover The typical amount of money a customer spends to feed one person.

blog A website or part of a website maintained by an individual containing commentary, descriptions of events, and sometimes graphics or video.

blogger A person who writes a blog.

bricks and mortar A business that serves customers from a permanent physical structure.

cash flow The rate at which money enters and leaves a business.

catering Providing food to a customer remote site or preparing prepackaged food for a large group of people.

check average In the food business, the typical amount of each customer’s check.

commissary The location at which a food truck operator parks, cleans, and stocks a truck; often also the location of the kitchen.

compounding cycle A marketing cycle combining public relations, advertising, social media, experiential follow through, and personal relationships to reinforce a singular message to a target market.

consistency In the food business, the delivery of a product in the same way over an extended period of time.

cook time How long an item takes to cook.

corporation A legal entity that has its own privileges and liabilities distinct from its members.

cost of goods sold (COGS) report A report that measures the true food cost percentage for a menu and inventory as a whole.

cross-contamination When foods and surfaces that might be contaminated with bacteria come into contact with other foods and surfaces that otherwise wouldn’t be a potential threat.

cultural perspective The underlying message your truck communicates to the customer. Also known as point of view.

customer relationship management (CRM) A widely implemented strategy for businesses to manage their relationships with their customers.

customized truck A truck that’s made to your specifications for the use of your business.

delivery sales Sales made when a customer orders through the phone or Internet and the food is delivered to their location.

demand The willingness of a consumer or group of consumers to make purchases at any given time.

dry goods Items such as tea, coffee, sugar, flour, and paper products that don’t require refrigeration.

eighty-six Restaurant lingo for taking an item off the menu. Generally refers to taking it off temporarily because you ran out of the item, but it can also refer to removing it permanently.

emotional attachment A feeling of closeness developed through a long-term relationship.

enlightened hospitality The positive feeling that the delivery of your hospitality product, a.k.a. food from your truck, makes the recipient feel due to the positive and generous way you operate your business and share your passion.

expeditor The person in charge of organizing orders.

fan page A page on Facebook dedicated to promoting a commercial interest such as a business or celebrity.

fifty one percenters Employees who will go the extra step every time to get the job done, with skills divided 51 to 49 between emotional hospitality and technical excellence.

fixed costs Business expenses that aren’t dependent upon the level of goods or services produced.

Food Code A document created and published by the Food and Drug Administration (FDA) every four years as an example for health departments nationwide. It includes the best practices for storing, preparing, and handling of food as recommended by the federal government.

food truck A mobile kitchen, canteen, or catering truck that sells food or drinks.

foodie Aficionados of food and drink who don’t work in the food and beverage industry professionally.

forecast The process of making educated guesses or statements that predict events not yet observed.

general liability insurance Specific coverage, for property and bodily injury, for instance, in a single policy.

gourmand A person who takes great pleasure in food.

income statement A monthly report that reviews a business’s sales, expenses, and profits. Also known as a profit and loss statement.

inventory The amount of food, beverage, and other saleable materials a business has on hand at any given time.

labor costs The amount of money spent on labor to run a business over a set period of time. This can be turned into a percentage by dividing the total labor cost by the total revenue.

layered marketing A method in which multiple marketing techniques are utilized in one campaign to reinforce the brand’s message and intentions.

lead generator form A form on your website customers can fill out to request information on your business. It’s one of the simplest and most effective ways to turn Internet marketing into actual customer connections.

menu mix The calculation of how much of your gross sales each item accounts for.

niche The subset of the market you’re focusing on to sell your goods.

on-truck cook The person in charge of preparing the food to be served to your truck’s customers—similar to a line cook in a restaurant.

operating capital The amount of money you need to have on hand to run a business.

operating costs Expenses related to daily operation of a business, including fixed and variable.

par The level of stock needed to service a business over a set period of time.

partnership Two or more persons agreeing to carry on a business, each sharing the profits and losses.

plating The act of placing prepared food onto a serving dish to be presented to a customer.

Point of Sale System (POS)Manages and monitors the checkout process, sales, and financial reporting of a business.

prep Work such as chopping vegetables or marinating meat that’s done prior to service.

prep cook A kitchen employee who prepares food for service.

prep time The amount of time it takes to prepare ingredients for service.

price-value relationship The connection consumers make between the price and quality of a particular product or service.

profitability The efficiency of your business at generating net earnings.

reverse truck A food truck business that began as a bricks-and-mortar food operation.

service recovery The paradox that a service or product failure can offer the opportunity for a business to receive higher customer satisfaction than if the problem had never occurred.

simple food cost The wholesale cost of the food purchased for a business. This can be turned into a percentage by dividing the total by gross sales.

sole proprietorship A business owned and run by one individual who assumes responsibility for all profits, losses, and liabilities.

start-up capital The amount of money needed to begin and continue to operate a business.

steps of service The basic steps employees perform in a food business.

target market A defined group of customers to whom a business is pitching its product.

trademark A legal term for a distinctive sign or indicator owned and used by an individual, business, or legal entity to identify products and/or services to consumers.

true food cost Food cost that incorporates factors such as waste, menu mix, and discounts.

up selling Casual suggestions made by service employees to customers to attempt to increase the amount of money spent.

variable costs Expenses that change in proportion to the activity of your business.

volume The amount of product your business sells in a given time period.