Extract
Effects of Atmospherics On Revenue Generation in Small Business Restaurants
INTRODUCTION
An important segment of the economy, full-service restaurants, had sales of $144.6 billion in 2002 (U.S. Census Bureau, 2002). With a continuing rise in American meals being eaten away from home, these sales are expected to grow (National Restaurant Association, 2005). Among restaurants, seven out of ten are single-unit; i.e., independent operations (National Restaurant Association, 2005).Kimes, Chase, Choi, Lee, and Ngonzi (1998) developed a framework for applying revenue management in restaurants. Conceived in the airline industry as yield management, revenue management involves the management of demand and pricing in order to maximize sales revenues (Cross, 1997). It has been shown to increase sales revenue by as much as 7% for airlines (Marraorstein, Rossomme, & Sarel, 2003). Revenue management is now used in a range of industries such as communication, hotels, and shipping (McGill & Van Ryzin, 1999).The restaurant ...See the full content of this document
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