Knowledge

Glossary: Restaurant Software from A to Z

All important technical terms about ordering systems, POS systems, and digital gastronomy — simply and clearly explained.

Aggregator

An aggregator is a platform that bundles offers from many restaurants and provides customers with a central ordering option — for example Lieferando, Wolt, or Uber Eats.

Aggregators handle marketing and delivery but charge commissions of 15–30% per order. Restaurants give up customer data and brand control to the platform. An own ordering system is the commission-free alternative.

API

An API (Application Programming Interface) is an interface through which software systems communicate and exchange data.

In the restaurant industry, APIs connect the ordering system with the POS system, receipt printer, or external payment providers. Well-documented APIs enable seamless integrations without manual intermediate steps.

Apple Pay / Google Pay

Apple Pay and Google Pay are mobile payment services that allow customers to pay contactlessly via smartphone or smartwatch.

Wallet payments are gaining significant importance in the restaurant industry: they are faster than card payments, require no PIN entry for small amounts, and are preferred by younger demographics. Ordering systems and card terminals should support both services.

Barcode Scanner

A barcode scanner reads barcodes or QR codes from products and transfers the item information directly to the POS system.

In the restaurant industry, barcode scanners are mainly used in businesses with a retail component — such as bakeries with packaged products or hotels with minibar billing. Automatic item recognition reduces input errors and speeds up the checkout process.

Break-even Restaurant

The break-even point is the revenue at which a restaurant covers its fixed costs and begins to generate profit.

To calculate it, all fixed costs (rent, staff, insurance, software) are divided by the average contribution margin ratio. A low break-even means less risk. Commission-free ordering systems lower the break-even by reducing variable costs per order.

Card Terminal

A card terminal (also card reader) is a device for accepting card payments — via debit card, credit card, or contactless via NFC.

Card terminals can be used stationary at the counter or as mobile handheld devices. Integration with the POS system enables automatic amount transfer and simplifies accounting. Note transaction fees, which range from 0.2% to 1.9% depending on the provider.

Cash Drawer

A cash drawer is a lockable money compartment connected to the POS system that opens automatically during cash transactions.

Modern cash drawers are connected via USB or kick cable to the receipt printer. They open automatically when a cash payment is completed. For restaurants with high cash volume, a robust cash drawer with multiple coin and bill compartments is important.

Cash Register Inspection

A cash register inspection is an unannounced audit by the tax office that checks proper cash register management on-site.

Since 2018, tax officials may inspect cash register management without prior notice — including TSE, Z-reports, and digital records. Non-GoBD compliance risks estimated revenue additions. A certified POS system with TSE protects against objections.

Chargeback

A chargeback is the reversal of a card payment by the cardholder's bank — usually due to a customer complaint.

Chargebacks can be expensive for restaurant owners: in addition to the order value, processing fees of €15–50 apply. Common reasons include undelivered orders or incorrect amounts. A complete order trail in the system is the best protection against unjustified chargebacks.

Click & Collect

Click & Collect refers to online pre-ordering of food with subsequent self-pickup at the restaurant.

For restaurant owners, Click & Collect is a high-margin sales channel: no delivery costs or platform commissions apply. Customers order conveniently via app or web, and the restaurant prepares the order just in time. Integration into the ordering system enables time slot selection and automatic status notifications.

Commission

Commission is the percentage fee that delivery platforms charge restaurants for each order processed through the platform.

Typical commissions range from 15% (pickup only) to 30% (with delivery service). On a €25 order, that's €3.75 to €7.50 — per order. A flat-rate ordering system charges a fixed monthly fee regardless of order volume, protecting the restaurant's margins.

Contribution Margin

The contribution margin is the difference between the selling price and the variable costs of a dish — the amount that contributes to covering fixed costs.

For restaurant owners, the contribution margin per dish is more meaningful than the pure selling price. A dish at €15 with €3 cost of goods has a higher contribution margin (€12) than one at €25 with €15 cost of goods (€10). Digital menu costing makes this optimization simple.

Cost of Goods

Cost of goods refers to the costs for all raw materials and ingredients purchased for the preparation of dishes.

In the restaurant industry, a healthy cost of goods is typically 25–35% of net revenue. This metric is crucial for pricing: too high squeezes margins, too low may indicate quality compromises. Regular inventory and digital stock management help with control.

Customer Data

Customer data includes all information about restaurant guests — from contact details to order history and preferences.

Own customer data is one of the most valuable assets for restaurant owners. With aggregator platforms, customer data belongs to the platform. An own ordering system gives you full access to names, addresses, order history, and preferences — the foundation for effective marketing and customer retention.

Customer Lifetime Value

Customer Lifetime Value (CLV or LTV) is the projected total revenue a single customer generates over the entire duration of the business relationship.

In the restaurant industry, CLV is calculated from average order value × order frequency × expected customer lifespan. A regular with €25 per order, 2× monthly, over 3 years generates a CLV of €1,800. Loyalty programs and push notifications measurably increase CLV.

Customer Retention

Customer retention encompasses all measures that motivate restaurant guests to return — from loyalty programs to personalized offers and excellent service.

Acquiring new customers costs 5–7 times more than retaining existing ones. Digital tools like loyalty programs, push notifications, and personalized coupons based on order history build long-term customer relationships and increase the customer lifetime value.

Dark Kitchen

A Dark Kitchen (also Ghost Kitchen or Cloud Kitchen) is a kitchen that produces exclusively for delivery orders — without its own dining area.

Dark Kitchens optimize costs since rent and staff for the service area are eliminated. They are particularly dependent on an efficient ordering system and good driver management, as all revenue comes through deliveries.

DEHOGA

DEHOGA (German Hotel and Restaurant Association) is the industry association for the hospitality sector in Germany with approximately 65,000 members.

DEHOGA represents the industry's interests in politics, offers legal advice, and publishes industry statistics. For restaurant owners, DEHOGA membership is an important source of information on topics such as labor law, hygiene, and tax law.

Delivery Platform

A delivery platform is a marketplace that connects restaurants with customers and usually handles the delivery — like Lieferando, Wolt, or Uber Eats.

Delivery platforms provide reach and visibility, but at high cost: commissions of 15–30%, loss of customer data, and dependence on platform algorithms. Many restaurants use platforms for new customer acquisition while directing regular customers to their own ordering system.

Delivery Zones

Delivery zones are geographic areas around a restaurant within which delivery orders are accepted — often with staggered delivery fees.

Well-configured delivery zones are key to profitability: too large increases costs and delivery times, too small limits the customer base. Modern ordering systems allow polygon-based zones with individual minimum order values and delivery fees per zone.

Digital Stamp Card

A digital stamp card is a customer retention tool where guests collect virtual stamps for each order and receive a reward after a certain number.

Digital stamp cards replace the classic paper stamp card with an app-based solution. Advantages: no lost cards, automatic tracking through the ordering system, and data analysis of ordering behavior. They demonstrably increase repeat purchase rates by 20–35%.

Driver Management

Driver management is the digital organization of delivery drivers — including scheduling, GPS tracking, and route optimization.

FahrerSystem offers specialized driver management for restaurants: real-time position of all drivers, automatic route planning, status updates for customers, and integration with the ordering system. This reduces delivery times and improves the customer experience.

Flat Rate

With a flat rate, the restaurant owner pays a fixed monthly amount — regardless of the number of orders or revenue.

In contrast to commission-based models (15–30% per order), a flat rate creates cost certainty. GastroSystem charges €299/month flat — no hidden fees, no commission per order. The more orders processed, the greater the savings compared to aggregator platforms.

GDPR

The GDPR (General Data Protection Regulation) is the European regulation for the protection of personal data, in effect since May 2018.

For restaurants, GDPR means: customer data may only be stored with consent, must be securely maintained, and deleted upon request. An own ordering system gives you full control over GDPR-compliant processing — unlike aggregators, where data belongs to the platform.

GoBD

GoBD (Principles for the Proper Management and Storage of Books, Records, and Documents in Electronic Form) regulate digital bookkeeping and document archiving in Germany.

For restaurant owners, GoBD means: all digital records — POS data, invoices, cancellations — must be stored in an unalterable, traceable, and machine-readable format. A GoBD-compliant POS system archives this data automatically.

GPS Tracking

GPS tracking is the real-time position tracking of delivery drivers via satellite — shown on a map for the restaurant and the customer.

With GPS tracking, restaurants can optimize routes, monitor delivery times, and provide customers with real-time ETAs. FahrerSystem uses continuous background tracking for accurate positioning and automatic delivery completion detection.

Gross Margin

The gross margin indicates what percentage of revenue remains after deducting the cost of goods.

A gross margin of 65–75% is a good benchmark in the restaurant industry. It is calculated as (Revenue − Cost of Goods) ÷ Revenue × 100. Platforms like Lieferando significantly reduce the effective gross margin through their commissions — an own ordering system helps protect it.

Integration

In the restaurant context, integration means connecting different software systems — such as ordering system, POS, receipt printer, and delivery management — into a seamless workflow.

Good integrations eliminate manual steps: an online order automatically arrives in the POS system, prints the receipt, and notifies the driver. API-based connections enable flexible combinations of different tools without data loss.

iPad POS

An iPad POS is a point-of-sale system that runs on an Apple iPad and serves as a cost-effective alternative to traditional cash registers.

iPad POS systems offer an intuitive interface, small footprint, and flexible deployment options. They are often operated with cloud connectivity so that revenue data is available in real time. A stable internet connection and a TSE module for fiscal compliance are required.

KassenSichV

The KassenSichV (Cash Register Security Ordinance) has required since 2020 that electronic POS systems in Germany be equipped with a certified Technical Security Device (TSE).

KassenSichV is part of the tax law requirements for POS systems. Every transaction must be logged in a tamper-proof manner and kept digitally available for audits. Violations can result in fines of up to €25,000.

KDS

A KDS (Kitchen Display System) is a digital screen in the kitchen that displays incoming orders in real time and replaces the paper receipt.

KDS systems organize orders by priority, show preparation times, and allow the kitchen to mark orders as complete. This reduces errors, saves paper, and improves communication between service and kitchen.

LMIV

The LMIV (Food Information Regulation) requires restaurant owners to visibly label allergens and additives in their dishes for customers.

EU Regulation 1169/2011 mandates the declaration of 14 major allergens — both on the menu and in verbal advice. Digital menus in ordering systems can automatically display allergens and facilitate compliance.

Loyalty Program

A loyalty program rewards regular customers with discounts, freebies, or exclusive offers to strengthen their bond with the restaurant.

Digital loyalty programs go beyond the classic stamp card: points systems, tier levels, birthday rewards, and personalized offers based on order history. They are integrated into the ordering system and run automatically — without additional staff effort.

Menu

A digital menu is the online version of the restaurant's menu — with prices, descriptions, allergen information, and images.

Digital menus in an ordering system offer advantages over printed versions: real-time price changes, availability management, automatic allergen labeling, and multilingual support. Well-structured menus with professional photos increase the average order value.

Menu Costing

Menu costing is the systematic calculation of a dish's selling price based on cost of goods, staff costs, and desired margin.

A proper calculation considers raw material costs, preparation losses (shrinkage, cooking loss), side dishes, and portion sizes. As a rule of thumb: net selling price = cost of goods × markup factor (typically 3.0–4.0). Digital recipe databases automate this calculation.

Multi-Location Management

Multi-location management is the centralized administration of multiple restaurant branches through a single software platform.

Restaurant chains and franchise systems benefit from central menu management, consolidated reporting, and unified customer databases. Changes to the menu or prices can be rolled out to all locations simultaneously — or customized per branch.

Ordering System

An ordering system is software through which restaurants receive online orders — via web app, QR code, or phone.

Modern ordering systems like GastroSystem offer a custom-branded web app for the restaurant. Customers order directly from the restaurant, bypassing third-party platforms. This saves commissions and gives the restaurant owner full control over customer data and pricing.

PCI DSS

PCI DSS (Payment Card Industry Data Security Standard) is a security standard for all companies that process or store credit card data.

Restaurant owners who accept card payments must operate PCI DSS compliant. In practice, compliance is usually covered by the payment provider (e.g., Stripe, SumUp), which tokenizes card data. Never store card numbers in your own systems.

POS

POS stands for Point of Sale — the location where payment takes place, and also the abbreviation for the cash register software used there.

In the restaurant industry, POS refers to both the physical checkout location and the software that runs there. A POS system handles order entry, price calculation, tax computation, payment processing, and receipt printing.

POS System

A POS system is hardware and software for processing sales in a restaurant — from order entry to payment and receipt printing.

Modern cloud-based POS systems replace heavy traditional registers. They offer touchscreen operation, automatic tax calculation, real-time reporting, and interfaces to ordering systems and payment terminals. In Germany, a TSE module is mandatory since 2020.

Push Notification

Push notifications are messages sent directly to the customer's smartphone — even when the app is not open.

For restaurant owners, push notifications are a free marketing channel with high open rates (40–60%, compared to 15–25% for emails). They are suitable for daily specials, order status updates, and personalized promotions. A native app or white-label solution is required.

QR Code Ordering

QR code ordering allows guests to scan a code at the table, view the menu on their smartphone, and order directly — without waiting for service staff.

QR ordering reduces wait times, lowers staffing needs, and enables digital upselling. Guests scan the code, browse the menu, select items, and pay — all on their own device. The order goes directly to the kitchen or POS system.

Receipt Printer

A receipt printer is a thermal printer that automatically prints orders on paper — for the kitchen, counter, or delivery.

Modern receipt printers are connected to the ordering system via Bluetooth or Wi-Fi. Whenever a new order comes in, the receipt is automatically printed. Epson thermal printers are recommended for their reliability and speed.

Restaurant Software

Restaurant software is the umbrella term for all digital solutions that support restaurant operations — from ordering and POS systems to delivery management and customer loyalty.

Modern restaurant software covers the entire value chain: online ordering, POS and billing, kitchen management, delivery logistics, customer database, and marketing. The trend is toward integrated all-in-one solutions that replace multiple individual tools.

ROI Own Ordering System

The ROI (Return on Investment) of an own ordering system measures how quickly the investment in a commission-free system pays for itself through saved platform fees.

With a flat-rate ordering system at €299/month and savings of 15–30% commission on every order, break-even is often reached in the first month. ROI increases with every additional order volume, as no variable costs apply.

SaaS

SaaS (Software as a Service) is a licensing model where software is not purchased but rented as a cloud service for a monthly fee.

SaaS solutions for the restaurant industry offer advantages: no large upfront investment, automatic updates, access from any device, and flexible scalability. GastroSystem operates as a SaaS model — €299/month for the complete ordering and POS platform.

SCA

SCA (Strong Customer Authentication) is an EU regulation that requires two-factor authentication for electronic payments.

Since the PSD2 directive, online payments over €30 must be confirmed with two independent factors — such as password plus fingerprint. For restaurant owners, this mainly affects online orders with card payment. Modern payment providers integrate 3D Secure automatically.

Self-Order Terminal

A self-order terminal is a touchscreen kiosk where guests can independently place and pay for their orders.

Self-order terminals reduce wait times and staff costs, especially in quick-service restaurants. They increase the average order value, as digital upselling suggestions can boost order size by 15–30%. The devices are synchronized with the POS system.

SEPA Direct Debit

SEPA Direct Debit is a European payment method where the payee collects the amount from the customer's bank account.

For restaurant owners, SEPA Direct Debit is mainly relevant for recurring payments — such as software subscriptions or supplier invoices. In the end-customer business, it is less commonly used, as online orders are usually paid by card or wallet.

Staff Cost Ratio

The staff cost ratio indicates the proportion of staff costs to total revenue and is one of the most important metrics in the restaurant industry.

A healthy value in the restaurant industry is between 30 and 40%. Together with cost of goods, it forms the so-called Prime Cost (ideally under 65%). Digital tools like automatic order intake, self-order terminals, and KDS can reduce the staff cost ratio without compromising service quality.

TSE

A TSE (Technical Security Device) is a certified hardware or cloud module that makes all cash register transactions tamper-proof.

Since January 2020, every electronic POS system in Germany must be equipped with a TSE. It signs each transaction with a digital signature and stores it in a protected memory. The TSE can be a hardware module (USB/SD card) or a cloud TSE. Regular export of TSE data is required for tax audits.

VAT Rates Gastronomy

In the gastronomy industry, the reduced tax rate of 7% applies to takeaway food, while the standard rate of 19% applies to on-premises consumption.

Correct VAT rate assignment is essential for restaurant owners. Beverages are always subject to 19%, while food varies depending on the place of consumption. Modern POS systems automatically calculate VAT based on the order type (delivery, pickup, dine-in).

White Label

A white-label solution is a product developed by a provider and rebranded under the customer's brand — for example, an ordering app that appears under the restaurant's own name.

With a white-label ordering app, the restaurant is visible with its own logo, colors, and name in the App Store or Play Store — without having to develop an app itself. Customers associate the ordering experience with the restaurant, not with a third-party platform.

Z-Report

A Z-Report (daily closing) is a legally required cash register report that summarizes all revenues, cancellations, and payment methods at the end of each business day.

A Z-Report must be created daily and kept for at least ten years. It serves as proof during tax audits. Digital POS systems generate the Z-Report automatically and store it in an audit-proof manner — including net revenues, taxes, and payment methods.

§146a AO

§146a of the German Tax Code has required since 2020 that all businesses with electronic POS systems use a certified TSE and issue receipts.

This provision is the legal basis for the KassenSichV. It regulates the receipt obligation (Bon-Pflicht), the TSE requirement, and the obligation to register the POS system with the tax office. Exemptions from the receipt obligation can be applied for.

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