Revenue Management in Restaurants Essay Example | Topics and Well Written Essays - 2000 words

Revenue Management in Restaurants - Essay Example By calculating factors such as length-of-stay, accessibility and overbooking, revenue management practices can add to revenue, efficiency and property valuation for hotels by growing length of stay and check supply and demand to influence offered rates (Andersen, P. and Bowe, V. 2000). Nowadays McDonald's operates in the global quick service restaurant manufacturing trade. McDonald's was the lead the way of this trade and it was McDonald's which made the quick service restaurant commerce a worldwide industry by creating a enormous global profitable empire. At present McDonald's ranks 114th in the list of luck 500 companies and thanks to its ground-breaking dispensation and standardized approach to the profitable production of fast food, McDonald's has placed the quick service restaurant business between the big financial driving force industries such as steel and vehicle. According to the expert analysis Raymond Kroc the founder of McDonald's had the dream of a sequence of fast food restaurants in each American State and in the earth as well. No doubt, he wanted his fast food restaurants to serve excellence food according to permanent standards and requirement. When Kroc ongoing business in 1955 there were other well recognized fast food chains in United States, in the middle of the most extensively known were A&W, Dairy Queen, Tastee -Freez, and Big Boy, Burger King then recognized as InstaBurger King was just preliminary out. There were lots of things which alienated McDonald's from its rivals. No doubt, Raymond Kroc's goal was to make world wide fast food chain while the rest of the main fast food chains were not so excited about growth. Other fast food chains which function on a franchise basis viewed their operators as customers and only reaped benefits without providing much leadership relating to operation, endorsement, sales strategy, financi ng and food dispensation. Raymond Kroc comprehensive his hands to operators of permission McDonald's restaurants by extravagance them like do business partners in each respect of the business. These close associations with operators make sure that McDonald's restaurants in any State in the United States would dish up food according to fixed requirement and amount. Furthermore, Raymond Kroc did more than by just give recommendation regarding procedure management him allowable his operators to work out their innovative skills connecting to every feature of the franchise trade. McDonald's had set new principles for the fast food manufacturing by selling a recognized service not just original food recipes and formulas. (Greatest Business Stories of All Times) Revenue Management in Restaurants According to the expert analysis the nature of the restaurant industry, typify by many self-governing minute businesses as well as a few nationwide and international enterprises in a usually competitive environment, makes the application of revenue management, on the whole, additional problematical than in the airline and hotel sectors. Additional, adjusting the excellence of the product, and hence price levels, is much easier than for airlines and hotels. Against that, the vast preponderance of restaurants