Food Industry Glossary

Like every industry, the food industry has special terms we use to describe aspects of our business. This glossary can help newcomers learn terminology and help seasoned food industry experts keep up to date.

TERM DU JOUR

percent of profit

The selling price of an item minus its cost, expressed as a percentage of its selling price. Also referred to as margin or percent of margin.

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  • convenience store

    A smaller, compact, self-service store with a limited number of brands and stock keeping units (SKUs) focused on high usage and immediate consumption. The option to purchase auto fuel may also be included at the store.

  • captive brand

    A product line sold exclusively through one retailer whose trade dress is not owned by that retailer, or whose manufacture is not specifically contracted by that retailer (and therefore doesn't classify as private label). See private label.

  • leakage

    The measure of lost sales to a competitive outlet; usually defined as non-converted sales.

  • lead time

    Time between placement of order and receipt by customer, helps gauge re-order point. Also, time between the announcement of a promotion or advertisement and the actual event.

  • ethnographers

    In the shopper research context, they are usually graduate anthropology students who are trained to note aspects of the shopping experience such as needs, decision logic, brand/channel/store selections, aisle behavior, etc. They work on site, from videotape, via in-store focus groups and/or shop-alongs.