Research Korner: Revenue Management

The Coyote Loco Revenue Management Introduction             There are many ways for the relaxation and for us to unwind. There are also many places that we can visit for us to spend and ease the stress and the circumstance in our life. Aside from that, there are also certain corporate meetings and business transactions that are doing inside outside the offices. Travelling and eating also are the best way for the family, friends, and for the any companion to have a quality time for them to bond. Trips then are also being done my most of the travel enthusiast, for the business trips and for the any personal needs. There are only few places that these incidents are taking place, including in these places are the hotels, the airplane and the restaurant. In this manner, there are many common services that these places are offering. However, there are many differences on their service offers as well. There are circumstances also whereas the services of the hotels, in the restaurant and in airplanes that follows some strategies in order for them to gain profit.      The Key Differences             There are many differences in services and facilities that the hotels, the airplane, and the restaurant are offering. One of their differences is the amenities that the places are using. Parts of the amenities that can find in the hotel are the swimming pool, the bedroom services, and some of the recreational facilities as the gymnasium and the sauna facilities. Aside from that, the foods that they offered also differ as the airplane prepared the foods before the flight while the restaurant and the hotel are preparing the food upon the order of the customers. There can be privacy as well in going to the hotel and using the things privately as the television, the toilets and the others stuffs. Aside from that, these are also open 24 hours.  Some of the hotels as well are offering fitness center for the workout schedule. The front desk and the lobby services are also the edge of hotel over the other relaxing places for its convenience and information (Pizam, 2005).             The services of the airline are classified as the intracontinental, intercontinental, and or the domestic. Including in the services of the airlines are the evaluation of the route, the planning of the flight, the permits on the over flight and to the landing, the check in agents and the supervisory ground handling, the VIP escorts and welfare. There are also offers on the discounted of the passenger tax. The airline services also are providing group fares and free tickets as their promos. It has also giving upgrades and luggage tags. Aside from that its services also consists of the lounge privileges and preboarding privileges. The airplane is then the major thing that had been used for the transportation and for the travel whether in the family, personal and business trip. Additionally, the airplane offers to its customers a world class services as the transfers of the tariffs in the different part of the world (Boehme, 1999).             The restaurant also plays an important role for the life of every person. This is not only the place for eating but it is a place as well for relaxation and for accompanying the other people. The services of the restaurant which are commonly differs in the other places are the foods which are being serve and the theme of each and every corner of the restaurant. Aside from that, it has also the nutritionist for the maintenance on the health on the food that had been eaten by the customer. Some of the restaurants as well are offering view of the nature and others are offering the oriental and other themes that would enjoy by the consumers. The services of the personnel them are the world class which are commonly desired by the consumers. It also offers low service charge with the whole and proper equipments. The meal duration as well in the field of the restaurants is seemingly longer than those of the other places.   The Important Characteristics of the Coyote Loco Restaurant             There are certain characteristics that are more important in the production and in the business application of the Coyote Loco restaurant. Part of the characteristics is the duration control of the meal or the meal duration. This is important so that it can reduce the diming times most especially in the peak periods. This can also generate significant increase in the revenue for the restaurant. To manage this kind of duration will be a little bit complicated. This is due to the explicit unit of sales is basically focus on the meal or the event and not to the time. But it is debatable that the time is the right measure of the product of the restaurant. In this manner, the Coyote Loco Restaurant managers should not only to think in reducing the diners’ average length of meal rather it is the variability in the length of the meals. This is then important for the restaurant to minimize its cost and maximize its profit. As the data had been seen, the meal duration time is quite long and need to have a little bit improvement.                  The course timing as well is an issue that the restaurant needs to face in order to generate better revenue. This is important because it will understand the meal timing and the possible delays that might happen. This includes the number of the guests, the time whereas the guests where seated as well as they where greeted. The time deliveries of the foods until the time the guest are left. In this manner the average meal time which is form the arrival up to the departure is about an hour and 12 minutes while having a standard deviation of 25 minutes. This time of the meal is only right but looking further, the standard deviation is somewhat alarming.             This are the characteristics that the restaurant need to give emphasis because of the reason that it can give much effect on the maximization on the restaurant’s revenue.     Revenue Management for the Coyote Loco Restaurant             The variability of the time which is its length is the restaurant’s major problems encountered. However, the meal time can reduce and is not easily done, that is why it is important to reduce first the meal time of the standard deviation. In this manner, reducing the standard deviation simply shows reducing the average meal time. Consequently, the high standard deviation had made cause of the many factors including the equipments, the methods, the products, and the personnel. In addition, majority of the issues are the procedural issues which involved the personnel and the time of the dining.      The Problems on Personnel In the personnel problems, the training and the variability of the level skill should be done. The staff may have the training for the service which and to the new employees so that there will be a consistent serving time and employees. There will be an operation development by then.      The Standard Operating Procedure Development In developing the standard operating procedure, greetings should be done by the host as the customers enters the restaurant and he is also responsible for taking out the orders so that there is a minimization in the waiting time. There should be a constant 5 minute delivery of the appetizer. In the delivery of the entrée it should be 12 minutes and right after the clearing of the appetizer it should be 5-7 minutes. Regarding the course timing, there should be a clearing of the appetizer first. The server should always remove the unwanted dishes came from the table and must always bring something when he went back in the kitchen. In the payment of the consumer, the server must bring the receipt in the table in just two minutes. The clearing of the table can be done by the server one minute after the customer had gone.      Availability of the Table The Alexander’s should then be improve their ability in tracking and predict the availability of the table that will be use by the nest set of customers. This can be done with the aide of the communication improvement of the host and the servers wherein the manual tracking system can be helpful in the betterment of the table management.      Demand Periods Knowing the demand of the periods on the hot and cold meals, the developments of the strategies can then a huge help in the revenue increase of the restaurant. The specific suggestion for the good tactics is the cold periods and not thinking of the undesirable on the hot periods. In relation to this, the managers must have huge ideas when and how they enter in the hot or cold period so that employees are alert in the given situation. Furthermore, the managers can repeat the same thing on the concentration to the average check which are being raised at the hot meals while the managers is focus on the table returns and its development for the optimization of servings.      The Customers and Staff’s Impact             In the identification of the strategies in the revenue management there are many proposals that came out as the use of the suggestive selling, the acceptance of the reservations, the multiple duties on the side of the host, widening of the menu variety, the increase of the prices, availability on the promotions, and the chips and the salsa serving. To follow these suggested techniques can have definitely have an impact on the staffs, on the managers, on the customers and on the business.             The selling of the desserts and the appetizer which are being suggested are the hints for increasing the check but it can also allows for reducing the RevPASH especially on the hot periods. It is also helpful in the low times of RevPASH but it is not advisable to use on the peak of the demand.             The reservations can be dangerous to the business especially when the people came up late or they do not even go onto the reservations. In line with this, the suggestion for the Coyote Loco is that it will going to accept the reservations for the six or more persons only in the times of the high demands. On the other times, there should be a guarantee for the reservation for asking the credit card or informing that the table can be use 10 minutes right after the reservation time.             Hiring the additional person in handling for the subordinate task of the host during the high demand is also one of the revenue management strategies. In this regard, the dedicated host is responsible greeting in the arrival; it is also responsible in giving the necessary and accurate time and writing on the waiting list of the incoming customers. This is due to declination or the refusal of the consumer when they did not see someone upon their arrival. The host is also the one doing the flow of the table, notification of the seats where there is an available, and finding the party. He does also other jobs during the cold times to avoid waste of time.               The creation of the efficient menu is also one of the strategies that are advisable in the restaurant. In the hot times, it is enough to reduce the size if the menu so that the time of the preparation in ordering can also reduce added to the focus on the items of the high contribution margin. In the cold times of the restaurant it is then advisable to offers special meals of promotions to attempt the demand of the business.             The increase on the prices during the peak time will also add numerous revenues in the restaurant. At the menu on the special weekend, it can be prepared in connection to the efficient menu which is offered having higher prices with even a little bit. On the contrary, on the weekdays, it can be effective to discount the other prices in order to increase the business. This special meals and promotions cam definitely add premiums in the business.             The use of the discounts coupons on the peak times of the restaurant can be useful as well as being applicable on the peak hours. The program of the frequent dining can also offered in order to encourage customers on the times of the off-peak. The customer can receive extra credit on the hot period as they went into dine in the cold period but only for one meal credit if they dine in the hot times. The redemption of the free meals is only at the time of the cold times.             The salsa and the chips as practice by the restaurant are already at the table. But, it should be serve them also at the hot times. In reverse, the chips and the salsa can only be serving upon request or after taking the request in the cold times. Dining time: The mean and (standard deviation are all in minutes) 5:00 PM     6:00 PM     7:00 PM     8:00 PM     9:00 PM Sunday    1:05 (0:20) 1:05 (0:16) 1:02 (0:13) 0:51 (0:14) 0:47 (0:13) Monday    1:00 (0:26) 1:02 (0:22) 1:05 (0:26) 1:00 (0:27) 0:54 (0:20) Tuesday   1:12 (0:36) 1:10 (0:35) 1:19 (0:35) 1:00 (0:28) 0:54 (0:25) Wednesday 1:03 (0:26) 1:02 (0:23) 1:02 (0:23) 1:00 (0:20) 0:52 (0:15) Thursday  1:09 (0:25) 1:23 (0:15) 1:03 (0:24) 1:05 (0:25) 1:14 (0:25) Friday    1:20 (0:24) 1:21 (0:17) 1:16 (0:24) 1:03 (0:24) 0:52 (0:22) Saturday  1:02 (0:31) 1:07 (0:27) 1:05 (0:23) 1:01 (0:22) 0:46 (0:17)                         This revenue yield management can definitely have a financial impact in the restaurant as maximizing the revenue. Though, certain employees and customers might react, these can ease upon giving them the same quality of foods and services. The Service Blueprint of the Coyote Loco   The service Blueprint of the Coyote Loco Arrival Policy on the Reservation Greet There is no Host   Waiting   Failure to follow   Management in waiting Seat Managing table   There is no Host   Looking for party   Unavailability of the tables   No greetings on the server Order Confusion to the Customer   Not attentive server   The server is untrained   Strategically Selling   The order is wrong Appetizer The delivery is late   The order is wrong   The timing is poor   Strategically Selling   Clearing   Bussing beforehand Entrée The delivery is late   The order is wrong   The timing is poor   Strategically Selling   Clearing   Bussing beforehand Dessert The delivery is late   The order is wrong   The timing is poor   Strategically Selling   Clearing Payment The delivery is slow   The server is not attentive   There is a slow pick up   Bussing beforehand Departure The delay of leaving of the guests   There is no Farewell   Bussing     In the greeting customer, the customer has the probability of leaving the restaurant upon their entering if they do not see any host on it. In the case of the waiting space of the Coyote Loco, it is somehow inevitable that it may happen. Besides, there are almost 20 customers who walked out every night on the peak evenings. Additionally, there is an inaccuracy on the way of communication between the host and the customers about the waiting time which can lead to customer’s frustrations. The arrival of the customer and its patterns will relate those of the arrival predictability. This is due to the reason that reservation by the customer has no possibility of showing up. The seating of the customer is one of the most important also in the restaurant management. As soon as the table is ready, the host will have to notified and look for the next party who are waiting. The case of table readiness but not notified to the host should be avoided. Moreover, when the host had been notified but the party had not yet been found. At the greeting of the server, the server should greet the party and then offer them drinks orders. The greeting of the server can be slow to the customer thought remained waiting due to the fact that the server is inattentive, unaware, and the left busy in the new party. In the delivery of the drink, it is important that the servers should walk up in the stairs in order to pick up the drinks orders. On the peak nights, the servers had facing troubles in the navigation of the customer at the bar because the area is full. In this time as well, the bartender is busy and there can be delayed. Once that there is back-up in to the bartender, then the server can now leave so that it can do the other duties. This is then the time that the drinks may be delayed as picked up by the server that can lead in the annoyance of the customers as well as it can be hazardous in the sales of the bar. The order of the customer should be taking as the server delivered the drinks. The unfamiliar name of the menu item and the size of the menu are often cause to delay the process of ordering due to the server is trying to explain all of the choices. The more delays can be experience if ever the server is not yet familiar in the items of the menu that are being prepared. Regarding these, the suggestive selling can be used but not appropriate at the hot times. The delivery of the entrée and appetizer can face many problems due to the reason that not all customers wants and ordered that these. Besides, the table has the very good supply of the salsa and chips. Including in the problem of the delivery is the poor and long timing on the delivery of the entrée and the appetizer. Additionally, the wrong order can deliver by the food runners and the server cannot recognize the completion of the customer’s entrees and appetizers and can also lead to the failure of the timely fashion dishes.             The order of the coffee and dessert shall be offer as the entrée had been cleared. This is also common problem as in the appetizer and in entrée wherein some of the customers chose to wait that eating the dessert or drinking coffee. This is not a hindrance on the cold times but still it is preventive during the busy times as the restaurant will turn the table.              The payment is done as the customer’s requests for the check. The forecasted problems in the payment is the server to be slow in the delivery and in the preparation of the check, the slowness of the customer as he arrange his payment, the inability of the customer to tell the server, and the delay of the server in the payment process.             The customer’s departure had done upon its payment. Majority of the customers leave the table but many of them choose to linger for awhile. This scenario is acceptable during the slow time but it can be hazardous when there are many customers who are waiting and looking for the available table. If the customer does not leave, then the host has the probability of forget a farewell offer to the guest. In addition, the busser and server may not recognize he readiness of the table for the resetting and bussing.             In this regard, all of the steps and all of the process are all necessary in managing the restaurant. This will also be the key points that the managers should be done on order maximize its profit and to minimize its cost. This can also lead to the ample products of food and services.   Bibliography Boehme, A 1999, Planning Successful Meetings and Events, AMACOM Div American Mgnt. Assn. Brophy, J and Alleman J 2005, Children’s Thinking about Cultural Universals, Routledge Pizam, A. 2005, International Encyclopedia of Hospitality Management, Butterworth-Heinemann How Long Should Dinner Take? Measuring Expected Meal Duration for Restaurant Revenue Management, Cornell University, viewed 06 February, 2008 http://www.asiarooms.com/malaysia/langkawi/grand_continental-hotel.html Grand Continental Hotel Langkawi 2000, Airline Services Incorporated, viewed 06 February, 2008 http://www.e2000air.com/

The Coyote Loco Revenue Management

The Coyote Loco Revenue Management Introduction There are many ways for the relaxation and for us to unwind. T...