Right People at the Right Price
Cornell’s Gary Thompson just made this great reservations optimization tool. It determines two things: the right mix of tables you should have in you restaurant and which reservations you should accept. Depending on the size of your restaurant and some other factors, accepting every reservation could be damaging. While this might yield you more revenue it comes at the cost of your guests. That is because you will have longer wait times for a table and lower customer service.
The purpose of this tool is to determine the best mix of tables in a restaurant, while simultaneously determining which reservations should be accepted from forecasted demand. A key parameter in the tool is the degree to which average dining durations are inflated. The tool user selects this inflation factor according to expectations regarding the extent to which parties will exceed the anticipated average dining time. Lower inflation factors result in more revenue, because more reservations are accepted, but also come with lower service levels, meaning more customers will need to wait for a table. Based on the user inputs, the tool, which uses the Solver add-in for Microsoft Excel, returns the optimum table mix for the greatest revenue. -Gary Thompson
His method has many caveats like dining time and dining duration. All of these are random, to some effect, in real life. While that is true he does do an excellent job finding the ultimate ratio for restaurant revenue. Go check it out.
Editor’s Note: We have been fixing bugs. This is a repost from last year. Originally it was posted on April 12, 2016 @ 08:41 AM.