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KMID : 0665420110260060692
Korean Journal of Food Culture
2011 Volume.26 No. 6 p.692 ~ p.697
The Impact of Customer¡¯s Party Size on Restaurant Revenue
Cho Me-Hee

Lee Kyung-Hee
Abstract
Restaurant managers seeking to maximize revenue should look carefully at how long their tables are occupied and how
much the average diner spends. This study examined the effect of the customer¡¯s party size on restaurant revenue. The
dining periods were divided into 2 types (lunch vs. dinner/weekdays vs. weekends), which were combined to show the
average spending per minute (SPM), to determine if the dining periods have measurable effects on the dining duration and
average bill. The results show that the dining duration for dinner was much longer than that for lunch and there was no
significant difference in dining duration between weekdays and weekends. On the other hand, customers in larger parties
at lunch time had a higher SPM than those in smaller parties. A larger customer party size was associated with a longer
dining duration for dinner and on weekdays. During all operating periods (lunch, dinner, weekdays, weekends), the party
size had a significantly positive effect on the mean spending per minute. For restaurant managers, these findings suggest
opportunities to increase revenue and adopt revenue management strategies.
KEYWORD
Customer party size, dining period, dining duration, restaurant revenue
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