The Main Strategies of Restaurant Revenue Management and its Applicability in the F&B Department

Abstract

Over the past years, Revenue Management has been used in various sectors, starting in the airlines, passing through the hotel and restaurant sectors, with a focus on the creation and maximization of revenue. In this sense, Restaurant Revenue Management becomes a useful tool for incomes, making establishments more competitive and contributing to business growth and sustainability in catering and restaurants context. The main objective of this study is to research the development and application of Restaurant Revenue Management, through the study of its systems and strategies, to understand how restaurant and catering establishments can optimize revenue through the creation and implementation of RRM systems. This research begins with a literature review where we aim to understand the principles and characteristics of Restaurant Revenue Management as a whole, to know the RRM strategies and how to apply them in the hospitality and catering sector. The methodology chosen was quantitative, where questionnaires were prepared and distributed to hotels and restaurants in Portugal. The results demonstrate that major part of the respondents is not familiar with the concept of Restaurant Revenue Management. Most respondents believe that the application of the RRM concept is important for the company's results and for those who are familiar with the concept, they consider that it allows the ideal customer to be defined based on their characteristics and enables decisions to be taken based on knowledge, creating a structure of fixed and variable costs. Purpose: Thus, the general and specific research objectives inherent to the study are: To assess how Restaurant Revenue Management is applied in Portugal in the restaurant and hotel contexts. To recognize what are its characteristics and practices. To understand how Restaurant Revenue Management influences revenues. To realize the advantages and disadvantages identified by the application of restaurant revenue management. Methodology: This research focuses on a quantitative methodology, using the questionnaire as a data collection tool. A deductive research approach was used in the scientific research process. The technical procedure used in the investigation phase was bibliographic research, having been collected information in several scientific articles and books on the subject. On a first moment, the collection of relevant documents for the research was made. The script was validated by six academic professionals and five professionals from the sector. After validation, an online questionnaire was conducted using the Google Forms platform. To achieve the maximum possible number of answers, the distribution channel used, to collect the results, was the e-mail. An initial telephone contact was made to confirm availability to answer the questionnaire. After this contact, the questionnaire was sent via e-mail. The questionnaires were conducted in Portuguese, as the study was only intended for entities located in Portugal. During the investigation, 880 questionnaires were sent out and 131 responses were received all completed, in a period between June and August. The instrument used to analyze and process the data collected was Excel. Results: The concept of Restaurant Revenue Management generally is not known among F&B departments, as demonstrated in the answers collected during the distribution of the questionnaire, in which 58.8% do not know the concept and only 41.2% of the respondents are familiar with the subject. Those who know and apply the concept of RRM consider the application of the concept and its respective impact important and crucial for the business. In the answers to the questionnaire about 57.4% consider its application important, while 24.1% considers it very important and 14.8% extremely important. Only 3.7% states that the RRM is not very important. Of the 131 respondents, only 41.2% are familiar with the concept of Restaurant Revenue Management, making a total of 54 responses. Originality: This is original research with the authors perspective constructed based in arguments from other research work to back up the investigation.