Posted on February 26th, 2025 

Hotels do it. Revenue Management I mean. Do you want a room overlooking the ocean, or a room overlooking the dumpster? Which one will you pay more for? We know!

Airlines do it too. No two travelers pay the same for their seat on the plane unless they are booked at the same time. The algorithms make sure of that because of supply and demand. Or the window seat? Gimme another $50 bucks! Extra leg room? That will cost you. And don't get me started on the peanuts!

Restaurants operate in a different world. While airlines and hotels benefit from fixed capacities and low variable costs, restaurants must account for high variable labor and menu item costs. This makes restaurant revenue management trickier, but not impossible.

So how do restaurants "Revenue Manage"? It's not easy, for many reasons.

Airlines and hotels have relatively fixed capacity and low variable costs. Therefore, having a full plane doesn't really increase the cost of flying from Point A to Point B over the cost of flying a half empty flight. They don't need to add more pilots or flight attendants or more fuel, like restaurants add servers or cooks or cost of food when it gets busy, so every airline dollar over fixed cost goes toward profit. Not so in a restaurant.

Curious how to optimize your restaurant’s revenue? Let’s talk. I offer a free, no-pressure consultation where we can dive into strategies that work for your business.

Think about this too. Restaurants that prosper understand good revenue management is not necessarily related to the selling of food, but to the SELLING OF TIME IN SEATS! I know it's getting complicated again so I'm not going to dive into REVPASH or combinable tables, and we’re not yet to the point where guests are willing to pay a premium for that prime time 7:30 reservation. You’re thinking and wondering now, so call me to Book a Consultation Call and discuss tailored strategies for operations that strengthen your financial foundation and increase your profitability.

Why You Should Seek Professional Help?

Considering your restaurant's potential, it's critical to embrace strategies that align financial goals with outstanding customer experiences. As restaurateurs face the changes of an ever-evolving industry, making informed decisions about pricing, menu optimization, and resource allocation transforms potential challenges into opportunities for growth.

My expertise in restaurant financial and operational consulting is fine-tuned to guide you through these choices, crafting a business model tailored to your vision and abilities.

Start with a no-cost conversation. Email [email protected]. If you prefer, call or text me directly at (607) 280-2340. Every restaurant has its story, and we're excited to help you write the next chapter, filled with informed decisions and better guest experiences.

It's your restaurant, after all—we're only here to help!

Restaurant Revenue Management

Menu Optimization

Dynamic Pricing

Profit Maximization

Data Analytics