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The Role of Technology in Restaurant Revenue Management

Cornell University School of Hotel Administration, sek6{at}cornell.edu

Technology systems can support restaurant managers' efforts to improve sales and profits through revenue management. By subdividing a meal into its component sections, a manager can determine which systems to apply at a particular stage for the purpose of providing the greatest revenue benefit for a particular restaurant. In adopting technology, managers must first conduct a financial analysis to determine whether the technology's cost will be more than offset by revenue improvements. If that financial calculation is favorable, management must then consider benefits to both employees and customers and must also take into account employees' and customers' perceptions of the technology's utility and ease of use. Without those elements in place, the technology faces dim prospects no matter what its prospective financial benefit.

Key Words: restaurant management • revenue management • table management systems • kitchen display systems • handheld ordering systems

Cornell Hospitality Quarterly, Vol. 49, No. 3, 297-309 (2008)
DOI: 10.1177/1938965508322768


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