JavaScript is disabled for your browser. Some features of this site may not work without it.
Restaurant Revenue Management at Chevys: Determining the Best Table Mix

Author
Kimes, Sheryl E.; Thompson, Gary
Abstract
Revenue management has been used in a variety of industries and generally takes the form of managing demand by manipulating length of customer usage and price. Supply mix is rarely considered, although it can have considerable impact on revenue. In this research, we focused on developing an optimal supply mix, specifically on determining the supply mix that would maximize revenue. We used data from a Chevys restaurant, part of a large chain of Mexican restaurants, in conjunction with a simulation model to evaluate and enumerate all possible supply (table) mixes. Compared to the restaurant’s existing table mix, the optimal mix is capable of handling a 30% increase in customer volume without increasing waiting times beyond their original levels. While our study was in a restaurant context, the results of this research are applicable to other service businesses.
Date Issued
2004-08-01Subject
capacity planning; case study; revenue management; service operations simulation
Related DOI:
https://doi.org/10.1111/j.0011-7315.2004.02531.xRights
Required Publisher Statement: © Wiley. Final version published as: Kimes, S. E., & Thompson, G. M. (2004). Restaurant revenue management at Chevys: Determining the best table mix. Decision Sciences, 35(3), 371–392. doi: 10.1111/j.0011-7315.2004.02531.xReprinted with permission. All rights reserved.
Type
article