Thai Restaurant Industry Glossary

The revenue left from a dish after subtracting the cost of its ingredients (food cost). Calculated as (Menu Price − Food Cost) ÷ Menu Price × 100. A typical target for Thai restaurants is 65–75% GP on dine-in dishes and 55–65% on delivery after platform commissions. See the GP Calculator guide for worked examples.

The percentage of total revenue that remains after all expenses — food cost, staff wages, rent, utilities, insurance, marketing, and tax. For UK Thai restaurants, a healthy net margin is 8–15% for independents. Below 5% indicates the business is vulnerable to cost increases.

The ratio of ingredient cost to menu price, expressed as a percentage. Formula: (Cost of Ingredients ÷ Menu Price) × 100. For Thai restaurants, target food cost is 25–30% for dine-in and 30–40% for delivery (to absorb platform commission). Track this per dish using a wholesale price benchmarker.

The direct cost of all ingredients and packaging used to produce the dishes sold in a given period. Includes: fresh produce, meat, seafood, dry spices, coconut milk, rice, noodles, takeaway containers, and sauces. Does not include labour or overhead. COGS is the primary input for calculating GP.

The average amount spent per customer (per "cover") in a single visit. Calculated as Total Revenue ÷ Number of Customers. For UK Thai restaurants, average cover typically ranges from £18–£25 for lunch, £28–£40 for dinner dine-in, and £15–£22 for delivery orders. See revenue benchmarks.

A productivity metric: Total Revenue ÷ (Number of Seats × Operating Hours). RevPASH tells you how efficiently you're monetising each seat over time. A well-performing Thai restaurant targets £6–£12 RevPASH depending on location and day part. Useful for comparing lunch vs dinner performance.

The sum of COGS (food cost) + Total Labour Cost (wages, NI, pensions, tronc). Prime cost is the single most important control metric in a Thai restaurant — it should not exceed 60–65% of revenue. If prime cost exceeds 65%, the business struggles to cover rent, energy, and overhead.

The level of sales at which total revenue equals total costs — the restaurant makes zero profit, zero loss. Calculated as Fixed Costs ÷ (1 − Variable Cost % of Revenue). If your Thai restaurant has £8,000/month fixed costs and a 60% gross margin, the monthly break-even is £8,000 ÷ 0.40 = £20,000 revenue. See the operating costs guide.

The minimum hourly rate employers must pay staff aged 21 and over. From April 2026, NLW rises to £12.21/hour. The real cost including Employer NI (15%) and pension (3%) is approximately £14/hour per employee. See the NLW 2026 Impact Report for full cost modelling.

The statutory minimum wage for younger workers (18–20) and apprentices. From April 2026: £10.00/hour for 18–20 year olds, £7.55/hour for apprentices. Thai restaurants using younger staff must track these separate rates carefully — HMRC penalties for underpayment are severe.

A formal arrangement for pooling and distributing service charges, tips, and gratuities among restaurant staff. A Tronc scheme is managed by a Tronc Master (a senior employee or external Tronc company) who decides the split between FOH and kitchen. Tips distributed through a formal Tronc are NI-free for the employer — a significant saving.

The practice of collecting all tips and gratuities into a single pool and splitting them among eligible staff. Under the Employment (Allocation of Tips) Act 2023, employers must distribute 100% of tips fairly and transparently, maintain a written policy, and keep records for 3 years. Pooling can include both FOH and kitchen staff.

A Home Office authorisation allowing UK businesses to employ workers from outside the UK (e.g., Thai chefs). A standard 4-year licence costs £536 (small sponsor) or £1,476 (large), plus a £239.20 Certificate of Sponsorship fee per worker. The restaurant must meet compliance duties including record-keeping and reporting. Full guide at Sponsor a Thai Chef.

RQF-6 (Regulated Qualifications Framework Level 6) is the skill level threshold for the skilled worker visa route. A role must be at RQF-6 or above to qualify for sponsorship. Thai chef roles fall under SOC code 5434 (Chefs), which is RQF-3 — meaning chefs do not meet the automatic RQF-6 requirement unless they hold a senior head chef role with management duties.

A digital document (not a physical certificate) that confirms a UK employer is sponsoring a specific worker for a visa. Each COS costs £239.20 and assigns a unique reference number the worker uses in their visa application. Defined COS (for roles already in the UK) and Undefined COS (for overseas hires) have different allocation rules.

A local authority inspector who visits food businesses unannounced to assess hygiene, food safety, structural conditions, allergen management, and HACCP compliance. EHO inspections determine your FHRS rating (0–5). Thai restaurants with wok cooking — which generates significant grease and smoke — must pay particular attention to extraction and cleaning.

A UK-wide rating system (England, Wales, NI) scoring food businesses from 0 (urgent improvement) to 5 (very good). Thai restaurant ratings are publicly visible on the FSA website, Google, and delivery platforms. A rating below 3 deters customers and can lead to reduced delivery visibility. Search any restaurant using the Hygiene Rating Lookup tool.

A legal requirement for all UK food businesses — a documented system that identifies food safety hazards and sets critical control points (CCPs) to prevent them. For Thai kitchens, typical CCPs include: cooking temperature for chicken/prawn dishes (75°C core), cooling rates for coconut-based sauces, and storage temperature for fresh herbs and seafood.

Ingredients stored at room temperature — not refrigerated or frozen. In a Thai restaurant dry stock includes: rice, noodles, spices, dried chillies, coconut milk (tinned), fish sauce, soy sauce, curry paste, sugar, flour, and packaging. Must be stored off the floor, in sealed containers, with clear date labels. Dry stock typically represents 30–40% of total food inventory value.

A commercial ventilation hood installed above cooking equipment to remove smoke, steam, heat, and grease particles from the air. Thai wok cooking at high BTUs generates intense smoke — a properly designed extraction canopy (minimum 0.6 m/s capture velocity) is essential for EHO compliance, fire safety, and staff comfort. Canopies require quarterly professional cleaning.

BTU (British Thermal Unit) measures the heat output of a gas burner. Thai cooking requires high-BTU wok burners — typically 30,000–60,000 BTUs for a commercial jet burner (compared to 12,000–15,000 for a standard home burner). Wok burners need dedicated gas supply and extraction, and are a key factor in Thai kitchen fit-out costs.

The workstation where completed dishes are assembled, garnished, and checked before being served. In a Thai restaurant, the pass is where the head chef or senior chef controls presentation, portion size, and temperature before the dish goes to the customer. An efficient pass layout is critical during peak service — typically positioned between kitchen and FOH.

Front of House (FOH): All customer-facing staff — servers, hosts, bartenders, managers who interact with diners. Back of House (BOH): Kitchen staff — chefs, wok cooks, prep cooks, KP (kitchen porters), dishwashers. In a typical UK Thai restaurant, the split is roughly 40% FOH / 60% BOH of total staff.

A standard measure of the alcohol content in a beverage, expressed as a percentage. Thai restaurants selling beer (Singha, Chang — typically 5–6.5% ABV), wine, or spirits must hold a Premises Licence (or Club Premises Certificate) under the Licensing Act 2003. ABV determines duty rates and must be displayed on menus.

A term used in premises licence applications for the Designated Premises Supervisor (DPS) or the person responsible for authorising alcohol sales. While AWP is an older term, the concept remains: the licence holder must be a responsible adult (18+) who holds a personal licence and can demonstrate knowledge of licensing objectives including the prevention of public nuisance and protection of children.

A Disclosure and Barring Service check — a background criminal record check used in the UK. While not a legal requirement for all restaurant staff, many employers require a Basic DBS check (shows unspent convictions) for staff handling alcohol or working with vulnerable customers. A Standard or Enhanced DBS may be required for roles involving children (e.g., restaurant play areas).

Legally required for any UK business with employees (including part-time and casual staff). Covers compensation claims if an employee is injured or becomes ill due to work — e.g., a chef with burns from a wok burner, a server with repetitive strain, or kitchen porter injured by faulty equipment. Minimum cover: £5 million. Penalty for non-compliance: up to £2,500 per day.

Covers claims from customers or third parties for injury or property damage on your premises — e.g., a customer slipping on a wet floor, a delivery driver injured at your entrance, or allergic reaction (if allergen management was inadequate). Not a legal requirement but virtually all Thai restaurants carry it; most landlords and delivery platforms require £2–5 million cover.

A property tax on non-domestic premises, paid to the local authority. Thai restaurants pay business rates based on their property's rateable value. As of 2025, most restaurants qualify for Retail, Hospitality, and Leisure (RHL) relief at 75%, capped at £110,000 per business. Without relief, a typical 40-cover restaurant pays approximately £6,000–£18,000/year in rates.

The estimated annual rent a property could achieve on the open market, set by the Valuation Office Agency (VOA). Business rates are calculated by multiplying the rateable value by the multiplier (51.0p for 2025/26 small business). Thai restaurants in London may have rateable values of £25,000–£60,000+; regional properties often £8,000–£25,000.

A regulatory limit on the percentage delivery platforms (Deliveroo, Uber Eats, Just Eat) can charge restaurants per order. While the UK has no national commission cap, several cities and the EU have introduced limits of 15% for in-house delivery and 5% for marketplace listing. Current UK commission rates range from 15–35% depending on the platform and service level. See delivery commissions guide.

A system where delivery platforms automatically adjust menu prices based on demand, time of day, weather, or local competitor pricing. This can work for or against Thai restaurants — during peak hours, platforms may increase the customer-facing price but also raise their commission. Operators should audit delivery menu prices weekly to ensure GP targets are maintained.

A commercial kitchen with no dine-in seating, storefront, or customer-facing staff — purpose-built exclusively for delivery and takeaway orders. Also called a cloud kitchen or virtual kitchen. Thai operators use dark kitchens to test new postcodes or run virtual brands without the capital cost of a full restaurant. Rent is typically 30–50% lower than a standard restaurant unit.

A delivery-only restaurant brand that exists exclusively on delivery platforms — no physical premises visible to the public. A single Thai restaurant kitchen might operate 3–4 virtual brands simultaneously (e.g., "Thai Street Bites," "Khao Pad House," "Bangkok Bowls") to capture more search slots and customer segments. Low-risk expansion, but requires distinct menus and strong branding.

The three fundamental data points used by Google and other search engines to verify a local business listing. Inconsistent NAP across Google Business Profile, Yell, TripAdvisor, Just Eat, and Facebook harms local search rankings. Thai restaurants should audit their NAP consistency quarterly — one wrong address or old phone number can drop you out of the local "Thai food near me" results.