Journal of the Korean Society of Food Culture (한국식생활문화학회지)

Korean Society of Food Culture (한국식생활문화학회)
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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)
  • Received : 2011.10.13
  • Accepted : 2011.12.12
  • Published : 2011.12.30
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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.

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References

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