The Future of Restaurant Revenue Management

Abstract

Although hotels and restaurants have expressed strong interest in implementing restaurant revenue management (RRM), data, change management and system integration issues have often stymied their efforts. The intent of this article is to present a framework for understanding the various aspects of RRM in a full-service restaurant and to identify fertile areas for future research. We present RRM as a building consisting of five pillars. The foundation consists of the company's internal infrastructure of data, decision support tools, systems and internal culture, while the five pillars consist of the traditional four Ps of marketing (product, promotion, price and placement) along with a fifth P, people.