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 useful for decisions about capacity, hours and 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.

The guide that works it through

RevPASH: How to Calculate Revenue per Available Seat Hour, Hour by Hour

Calculate RevPASH correctly by the hour, split it into occupancy and spend, and see what Cornell's restaurant revenue research found about table mix, meal length and pricing by time.

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