Capacity Economics

How do you calculate RevPASH for a restaurant?

Direct answer

Revenue per available seat hour, or RevPASH, equals dining-room revenue divided by available seat hours. Available seat hours equal seats offered multiplied by hours open in the measured period.

Key points

  • RevPASH = Dining-Room Revenue / (Available Seats x Open Hours).
  • Use actual offered capacity when sections or periods are closed.
  • Separate off-premise revenue unless it truly consumes dining-room seat capacity.

What to do next

  1. 1Define the dining area, service period, offered seats, and open hours.
  2. 2Reconcile dine-in revenue for the exact same scope.
  3. 3Compare dayparts and inspect demand, turn time, reservation pacing, check average, and blocked capacity.

Worked example

A 60-seat dining room open for 5 hours has 300 available seat hours. With $12,000 dine-in revenue, RevPASH is 12,000 / 300 = $40.

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