Small Queuing Restaurant Sustainable Revenue Management

Kwangji Kim, Mi-Jung Kim and Jae-Kyoon Jun
Additional contact information
Kwangji Kim: Business Research Center (Global Maritime Tourism Research Center), Pukyong National University, Busan 48513, Korea
Mi-Jung Kim: Institute of Economy Business Strategy, Dong-Eui University, Busan 47340, Korea
Jae-Kyoon Jun: Department of Business Administration, Pukyong National University, Busan 48513, Korea

Sustainability, 2020, vol. 12, issue 8, 1-14

Abstract: When competitive small restaurants have queues in peak periods, they lack strategies to cope. However, few studies have examined small restaurants’ revenue management strategies at peak times. This research examines how such small restaurants in South Korea can improve their profitability by adapting their price increases, table mix, and the equilibrium points of the utilization rates, and reports the following findings based on the analysis of two studies. In Study 1, improving profitability by increasing prices should carefully consider the magnitude and timing. In Study 2, when implementing the table mix strategy, seat occupancy and profit also increase, and we further find the equilibrium points of the utilization rates. Under a queuing system, the utilization rate and average waiting time are also identified as having a trade-off relationship. The results provide insights into how managers of small restaurants with queues can develop efficient revenue management strategies to manage peak hours.

Keywords: queuing system model; sustainable revenue management; small restaurant; utilization rate (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/8/3477/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/8/3477/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:8:p:3477-:d:349848

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().