Restaurant Revenue Management Principles
Understanding RevPASH
Key hospitality yield management principles developed by Dr. Sheryl Kimes:
- Perishable Seat Capacity: An empty restaurant chair during a 7:00 PM Friday dinner rush represents perishable inventory that can never be sold again.
- The Dual Levers of RevPASH: RevPASH incorporates both pricing power (Average Check per Guest) and operational speed (Dining Duration & Table Turns).
- Table Mix & Empty Chair Drag: If two-person parties are routinely seated at four-person booths, 50% of the seat capacity is lost. Optimizing table mix (installing more deuces) dramatically increases seat occupancy.
- Non-Intrusive Turn Speedups: Faster turn times shouldn't rush guests—operators achieve 10-15 minute speedups by expediting kitchen tickets, deploying handheld pay-at-table POS, and clearing dessert plates promptly.
Calculate food cost margins in the Food Cost Lab.