Restaurant revenue management and analytical assessment of its effectiveness

Keywords: restaurant revenue management, yield management, contribution margin, margin analysis, ABC-analysis


The effectiveness of a revenue management system is important for every business, as revenue is a factor that directly affects profit. This issue is especially important for the restaurant business, where the level of costs is much higher than the average in the economy. The subject of the study is modern restaurant revenue management systems used in foreign practice. The goal of the article is to study the theoretical aspects of revenue management and evaluate its effectiveness in the restaurant business. Objectives: (1) to clarify the conceptual apparatus of restaurant revenue management, (2) to study the indicators for assessing the effectiveness of revenue management and their use in the restaurant business, (3) to determine the possibilities of using factor analysis of contribution margin in restaurant revenue management. The study was conducted using the method of a systematic review of scientific literature on this topic. The results of the study showed an ambiguous interpretation of the conceptual apparatus of revenue management and the need to adapt the indicators for assessing the effectiveness of revenue management to the conditions of the restaurant business. Conclusions: yield management, unlike revenue management, is applied to specific conditions and the restaurant business has the corresponding characteristics. Taking into account the specifics of the restaurant business, it is important to analyze the menu in terms of the contribution of each assortment item to profit. For an overall assessment of the restaurant menu, it is advisable to use a multi-criteria ABC-analysis. To quantify the effectiveness of the applied revenue management strategy in the operational order, the indicators CMPASH (Contribution Margin per Available Seat Hour) and CMPASM (Contribution Margin per Available Square Meter) should be used. To study the change in contribution margin as a result of management decisions made based on the results of ABC-analysis, it is advisable to conduct a factor analysis.


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How to Cite
Tetyana Kalaitan, Oleh Hrymak, Lesya Kushnir, Ruslana Shurpenkova, & Oksana Sarakhman. (2023). Restaurant revenue management and analytical assessment of its effectiveness. The Journal of V. N. Karazin Kharkiv National University. Series: International Relations. Economics. Country Studies. Tourism, (17), 152-162.