Food & Beverage Revenue Management Essay Example | Topics and Well Written Essays - 2500 words

Food & Beverage Revenue Management - Essay typeEstablished in 2004, blushing(a) Bamboo offers a casual and relaxed atmosphere but guarantees an enjoyable dining experience. The steer of the eating house is the food, so people are encouraged to visit in relaxed garments or casual attire. The restaurant is hands down situated in the heart of Central Dublins food and restaurant district. The restaurant can conveniently seat around sixty to eighty-five guests and is open seven days a week for luncheon and dinnerAs in any food business, Red bamboo also encountered problems in controlling yields and revenue enhancements, peculiarly in its initial year of operations. The worry then decided to use an effective yield direction mechanism to address the problems which will eventually affect the overall operations of the restaurant (Kimes, 1989).Yield circumspection is an approach aimed at improving revenues and increasing the course of consumer demand. In order to achieve these goals, yield anxiety utilizes the fundamental stratagem of giving the precise service at the right point in clock to the right consumer at the appropriate price (Kimes, 1989).Each segment of this approach entails definite tactical levers that alter the management to come up with an efficient and advantageous yield management plan. The factors that greatly affect the sequel of this strategy are best known as the 4 Cs which are bell, clock, calendar and capacity. calendar procedures entail control over the timeframe when the transaction/reservation is made. Clock-related strategies rotate on the timing of the service delivered to the customer. capacitor issue is associated with effectively selling seating that is on hand based on the existing demand. Last, cost refers to the appropriate value of the service (Kimes, Chase, Choi, Lee, and Ngonzi, 1998).It is imperative to provide a measurement tool or channel definition to the sale which is the outcome of the service provided. For Red Bamboos case, the management referred to it as available seat per bit or seat/hour (Kimes, 1989). The guiding principle for an effective yield management plan is to come full advantage of the revenue that could be made on the available seat/hour (Kimes, 1989). For purposes of easier identification, management referred to this as REVSH. Being able to quantify in a time-related approach the goal of the process, the management of Red Bamboo then refocused on the specific stratagem levers that will impact REVSH. Among the levers that were initially identified are the succeeding(a) meal preparation, menu plan/design, operational process, labor setup, etc. Red Bamboos management first looked into the physiological capacity of the restaurant. Red Bamboo conveniently seats sixty persons in its main dining hall, twenty in the bar and when weather permits, can seat around fifteen in an outside patio/area. When the revenue management plan began, Red Bamboos menu consisted of twelve appetiz ers, twenty-five entrees and six desserts. In order to find oneself baseline information on mealtime length, arrival sample and REVSH, data was collected on an hourly stylus though point of sales and observation by the staff. From these collected data, the management then estimated the comely bimestrial meal duration by calculating the standard deviation and variance during meals (Miller, Dopson, and Hayes, 2004). It was found out that the average meal duration of customer was one hour