Restaurant Math

“I was at this restaurant. The sign said ‘Breakfast Anytime.’ So I ordered French Toast in the Renaissance.”
Steven Wright

Forget about ordering off the menu; first, you have to get a seat. That’s not a given anymore.

It was never a slam dunk to get into our preferred local eatery. Once COVID-19 forced all patrons outside with social distancing, it was harder still. As we sat waiting for some seats for the third weekend in a row, we began to fidget. What to do? In an era where restrictions abound, sometimes it’s hard to see the options.

Happily, we knew the owner and every boss in the place. I pulled our most-beloved manager aside and asked her if she would be willing to rearrange the furniture and make more money. I explained to her that smaller parties were crowding out larger ones. Why not go from the arrangement you have (which was A) to one with several smaller tables (which became B), I asked? If you track the revenue changes, you’ll be pleasantly surprised.

As shown below, she did just that. Revenue went up by over 25%. Unlike A, Setup B recognizes they face a Demand Curve, with more parties of one or two people than groups of five or more.

#demand #demandanalysis #restaurant #restaurantmath #profits #revenue