Resturant Revenue Management: An Investigation into Changing Standard Operating Proceduresto Maximize Revenue
AbstractChanging the standard operating procedures that are used for serving customers during periods of high versus low demand is a method of revenue management employed in restaurants. This study examined the extent to which this practice is used in restaurants that are primarily small businesses and examined its effects on revenue generation. The results of a survey of 85 restaurants provide the first known evidence that changing standard operating procedures is common among these small businesses. Findings support the hypothesis that greater changes in standard operating procedures between periods of high and low demand are significantly and positively associated with revenue generation.
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