Restaurants, hotels and travel
Cover
One guest served a meal: the unit restaurants count.
Last reviewedWhat does Cover mean?
In restaurants, a cover is one guest served (the word first meant one place setting). Restaurants count covers per day or per meal period and track average spend per cover, sometimes called average check per head. Revenue = covers x average spend per cover. Example: 180 covers a day at an average spend of 25 is 4,500 of daily sales. Covers depend on seats, opening hours and table turns; spend per cover depends on menu prices, drinks and upselling.
Where does it come up in case interview prep?
Related terms
- Table turnsHow many times each table is used by a new group in a meal period or day.
- AOV (average order value)Revenue divided by the number of orders.
- Average unit volume (AUV)Average yearly sales per restaurant or store.
- Prime costFood and drink cost plus labour cost, the two biggest restaurant costs.
- Same-store sales (comparable sales)The US name for like-for-like sales: growth at restaurants or stores open in both periods.
- Franchise royaltyThe ongoing fee a franchisee pays the brand, usually a percentage of sales.
- Master franchiseThe right to develop a brand across a whole country or region, including signing sub-franchisees.
- Delivery aggregatorAn app that lists many restaurants and delivers their food for a commission.