{"id":1015,"date":"2021-03-31T22:40:38","date_gmt":"2021-03-31T20:40:38","guid":{"rendered":"http:\/\/www.revenueacrobats.com\/?p=1015"},"modified":"2021-05-26T16:19:45","modified_gmt":"2021-05-26T14:19:45","slug":"another-article-about-restaurant-revenue-management","status":"publish","type":"post","link":"https:\/\/www.revenueacrobats.com\/en\/another-article-about-restaurant-revenue-management\/","title":{"rendered":"ANOTHER ARTICLE ABOUT RESTAURANT REVENUE MANAGEMENT…"},"content":{"rendered":"

….But how far are we from a correct application?<\/b><\/h2>\n

Let’s take a different approach.<\/b><\/h3>\n

This is a 4-handed post written with Roberto Bernardi<\/a>, Co-founder Restratego<\/a><\/em><\/span>, Senior Revenue Manager expert with 20 years of experience in the international chains, and since 2016 focused on F&B and S&C Revenue Management application.<\/em><\/span><\/p>\n

There are many articles and publications about Restaurant Revenue Management (RRM from now on) that tend to repeat the typical mantra about its definition: <\/span>sell the right seat, to the right customer, at the right time, for the right price<\/span><\/i>. There is clear parallelism with the traditional definition of Rooms Revenue Management (sell the right room, to the right customer, at the right time, for the right price) and indeed the two areas are often compared, to explain the application of Revenue to the Restaurant field.\u00a0<\/span><\/p>\n

Not everybody is necessarily knowledgeable on revenue management though, so in this article, we will try to make RRM easier: keeping it simple, but understandable.<\/span><\/p>\n

When we talk about revenue management applied to the hotel industry, one of the most common misconceptions is to think about it as related to pricing only. As such, people think about the room’s price fluctuations on a daily, even hourly basis, based on demand conditions. This is partially true (we will elaborate on this later on\u2026) but <\/span>one universally true thing is that the majority of the guests understand and accept price changes at hotels as this is a common practice for flights alike. Thinking about a restaurant applying price changes to its menu based on demand is still far from becoming acceptable<\/span><\/i>, simply because the customers are not familiar with it and it might negatively impact the demand in the long term.<\/span><\/p>\n

Nevertheless, it is possible to apply different menu pricing when demand is very high e.g. during popular events (Olympics, football, national congresses…). In all these cases, <\/span>restaurants can implement a “special price” menu and therefore work on the product (menu type) to increase the price and revenue return<\/span><\/i>.\u00a0<\/span><\/p>\n

When we said that one common misconception about revenue management is related to considering it a mere pricing activity, it is because revenue has never been about pricing only even when we talk about room revenue. As such, t<\/strong><\/span>here are different ways and techniques to drive and optimize revenue in both hotels and restaurants by working on the core elements that are at the basis of the discipline and without compromising the market positioning.<\/b><\/p>\n