DOI QR코드

DOI QR Code

The Impact of Customer's Party Size on Restaurant Revenue

패밀리 레스토랑에서 고객의 동반인원수가 수익에 미치는 영향에 관한 연구

  • Cho, Mee-Hee (Department of Food Service Management, Kyunghee University) ;
  • Lee, Kyung-Hee (Department of Food Service Management, Kyunghee University)
  • 조미희 (경희대학교 외식경영학과) ;
  • 이경희 (경희대학교 외식경영학과)
  • Received : 2011.10.13
  • Accepted : 2011.12.12
  • Published : 2011.12.30

Abstract

Restaurant managers seeking to maximize revenue should look carefully at how long their tables are occupied and how much the average diner spends. This study examined the effect of the customer's party size on restaurant revenue. The dining periods were divided into 2 types (lunch vs. dinner/weekdays vs. weekends), which were combined to show the average spending per minute (SPM), to determine if the dining periods have measurable effects on the dining duration and average bill. The results show that the dining duration for dinner was much longer than that for lunch and there was no significant difference in dining duration between weekdays and weekends. On the other hand, customers in larger parties at lunch time had a higher SPM than those in smaller parties. A larger customer party size was associated with a longer dining duration for dinner and on weekdays. During all operating periods (lunch, dinner, weekdays, weekends), the party size had a significantly positive effect on the mean spending per minute. For restaurant managers, these findings suggest opportunities to increase revenue and adopt revenue management strategies.

References

  1. Chang MH, Kim DC. 2006. Development for the maximization of family restaurant revenue. Korea J. of Tourism Research, 20(1):51-66
  2. Cho MH, Lee KH. 2010. Measuring expected meal duration for restaurant revenue management. J. East Asian Soc Dietary Life, 19(2):278-286
  3. Goldman P, Freling R, Pak K, Piersma N. 2002. Models and techniques for hotel revenue management using a rolling horizon. J. of Revenue & Pricing Managemen, 1(3):207- 219 https://doi.org/10.1057/palgrave.rpm.5170025
  4. Kimes SE. 1999. Implementing restaurant revenue management. Cornell Hotel & Restaurant Administration Quarterly, 40(3):16-21
  5. Kimes SE. 2004. Restaurant revenue management: Implementation at Chevys Arrowhead. Cornell Hotel & Restaurant Administration Quarterly, 45(1):52-67 https://doi.org/10.1177/0010880403260107
  6. Kimes SE, Chase RB, Choi P, Lee Y, Ngonzi EN. 1998. Restaurant revenue management: Applying yield management to the restaurant industry. Cornell Hotel & Restaurant Administration Quarterly, 39(3):32-39
  7. Kimes SE, Robson SKA. 2004. The impact of restaurant table characteristics on meal duration and spending. Cornell Hotel & Restaurant Administration Quarterly, 45(4):333- 346 https://doi.org/10.1177/0010880404270063
  8. Lovelock CH. 1992. Strategies for managing capacity constrained service organization: Marketing, operation, and human resources, 2nd ed., New Jersey: Prentice Hall, pp 154-168
  9. Ng LC, Wirtz J, Lee KS. 1999. The strategic role of unused service capacity. International Journal of Service Industry Management, 10(2):211-238 https://doi.org/10.1108/09564239910264352
  10. Sill B. 2000. Capacity management: Engineering the balance between customer satisfaction, employee satisfaction and company profit. The Consults, (second quarter):72-81
  11. Smith B, Leimkuhler J, Darrow R. 1992. Yield management at American airlines. Interfaces, 22(1):8-31 https://doi.org/10.1287/inte.22.1.8