Revenue Management

Sales Revenue Management

Forget calling it “Sales Management”, It’s actually “Revenue Management”. Why? Because there’s more to it than selling. There’s the method to the sale as well as the methodology - I told you it takes a plan to succeed and that includes sales! Let’s begin.

Restaurant Revenue Management can be defined as seating the right customer at the right seat at the right time and for the right price so as to maximize revenue.

The core analysis come from the Hotel Industry’s use of Revenue Management in calculating “RevPar” - Revenue per available room. For the restaurant owner the calculation is “RevPASH” or Revenue per available seating hour. And although it may seem overly simplistic to you to have a formula to tell you when and how slow your slow periods actually are, it allows you to drill down into your sales opportunity much deeper. It does this by utilizing strategies from an analysis of areas like service cycle changes, pricing and table mix in connection with your internal and external marketing efforts to drive sales more efficiently.

You want to make sure you are doing every thing you can in driving sales during your peak hours as well as finding more ways to drive business during off-peak hours.

The outline overview for the analysis can be found in this article.

Click on my simplified matrix to see the example.

Our look also includes Cost Controls, AP Systems, Internal and External Sales Programs and Discounting.

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What kind of a job are you doing when it comes to maximizing your seating area? Check it out here on the RevPASH Calculator.

Revenue Per Available Seating Hour Calculator [RevPASH]

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