RevPASH
Also called: revenue per available seat hour
RevPASH is revenue divided by (seats × hours open). It merges occupancy and spend into one number, which makes it the correct metric for any decision about capacity, hours, or the speed of service.
Formula
RevPASH = Revenue ÷ (Available seats × Hours open)
Worked example · Where the money actually is
- 90 seats, dinner service 5pm–10pm
- 450 seat-hours
- Revenue
- $8,400
- RevPASH
- $18.67
- 5–6pm alone
- $4.10
- 7–8pm alone
- $31.20
- Peak-to-trough spread
- 7.6×
The service-level average conceals both facts. The 5pm hour is barely covering its labour; the 8pm hour is the business.
What to do with a low hour
- Reduce available seats — close a section and staff it accordingly rather than running a full floor for a quarter of it.
- Change the hours — the least popular hour is often the one to cut, not the one to promote.
- Change the offer — a different menu or price point aimed at who's actually there at 5pm, rather than a discount for everyone.
- Fill it deliberately — early prix fixe, bar programme, private bookings.
Related terms
Seat turnover
How many times a seat is occupied by a new party during a service period.
Average check
Total sales divided by covers — the single most leveraged number in a restaurant's revenue line.
Covers
The number of guests served in a period — the denominator behind average check, labour per cover and cost per cover.