Why total revenue is not enough
Two restaurants may have identical daily revenue but different capacity or opening hours. Comparing totals hides this difference. RevPASH divides dining-room revenue by available seat-hours, showing the productivity of a resource that cannot be saved for tomorrow: seats at a specific time.
A simple calculation
A dining room has 60 seats, operated for 8 hours and earned ₴24,000. Available capacity is 480 seat-hours. RevPASH = 24,000 ÷ 480 = ₴50 per seat-hour. This is an educational example, not a benchmark for every restaurant. Good results depend on concept, prices, city and costs.
Handling capacity changes
If a 20-seat terrace was available for 4 hours, add 80 seat-hours to the main dining room. Total capacity becomes 560 and RevPASH about ₴42.86. Count only capacity actually available for sale. Do not automatically treat a temporarily closed area as fully available.
Hourly analysis requires accurate timing
A check closed at 21:00 may belong to guests who occupied a table from 19:30. Assigning all revenue to the closing hour distorts hourly analysis. For detailed analysis, agree how to allocate revenue across the visit. Without such data, use wider intervals and explain the methodological limits.
Using the result
Compare the same weekdays and time intervals. If lunch RevPASH falls, check guest flow, average order and visit duration. Do not reduce guest comfort just for speed: decisions must consider service and repeat visits. Analyse delivery separately because it does not use dining-room seats.
Methodological source: Cornell — Time- and Capacity-Based Measurement of Restaurant Revenue.
Formulas at hand
Find definitions and educational calculations in RestaMatrix Academy.