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There are many restaurants tries to increase their revenue nowadays. Restaurants struggled to find the appropriate way to reduce their cost and increase their profit. The restaurant business can be considered similar with the hotel or airline industry, therefore the use of revenue management can be implemented also in the restaurant business. In fact, many restaurants have used various types of revenue management practices, in order to achieve higher profit. However, the application of those strategies seems to be too tactical. Therefore, it is suggested for restaurants to reconsider the use of a broad theory from revenue management which might help the restaurant operators to gain more profit and to successfully implement restaurant revenue management.
Furthermore, before we go into deep in the process of restaurant revenue management it is wise to understand what is the meaning of revenue management it self. According to Kimes et al. (1998, pp.33) Revenue Management is the “application of information systems and pricing strategies to allocate the right capacity to the right customer at the right time and place.” This system can help the restaurant to determine the right price for the right time and the right customer. However, the application of revenue management system can only be applicable for the restaurant that has the characteristic of relatively fixed capacity, predictable demand, perishable inventory, appropriate cost and pricing structure and also demand that is variable and uncertainty (Kimes et al., 1998). This paper will discuss and critically analyze the use of restaurant revenue management system within Coyote Loco Restaurant which is located in Ithaca. The purpose of this paper is to develop a set of framework to help Coyote Loco Restaurant to increase their revenue as well as to reduce the turn away guest. Before we go into deep analyses it is wise to examine several characteristics that Coyote...