Abstract
Restaurant revenue management (RRM) focuses on how a restaurant can produce the highest amount of revenue possible for a certain time period. Every transaction includes elements of RRM and the use of many RRM strategies is most beneficial when a restaurant has demand that exceeds capacity. This chapter presents an overview of RRM theories and an introduction to RRM terms, tools, and techniques. RRM has slowly gained prominence in the food and beverage industry. Savvy restaurateurs have realized that utilizing RRM principles and tools can uncover and capture revenue-enhancing opportunities that do not necessarily require huge investments. In RRM, a metric that reflects both supply and demand management is revenue per available seat hour (RevPASH). The first step of any RRM program is to establish the baseline or develop a data-supported understanding of how a restaurant is currently performing. One progressive RRM solution that is useful in both high and low RevPASH scenarios is the use of electronic menus.
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