What is Revenue per Available Seat per Hour (RevPASH)? - Restaurants
RevPASH is the most valuable indicator to measure success in a restaurant as it factors time, capacity and revenue.
This KPI allows you to understand how much revenue on average each seat makes in a time range, empty or full. For example, if on a given day your restaurant has a capacity of 100 seats, operates for 10 hours and made £5,000 of total revenue, for each hour of operation, each one of the seats generated £5 per hour of operation.
This KPI is formed by a mix between the client spend and occupancy, which is critical to identify risks and opportunities for your business.
Having an index of 100 or above means you are utilising your restaurant capacity, time and spend per head, better than your competitors and consequently, gaining a bigger portion of the market available.
To understand this better, imagine your restaurant has a turn Index of 95 and a Spend per head Index of 110. If your RevPASH is above 100, your restaurant is capturing more market share because your customers are spending more money in your restaurant than in the competitors and that is offsetting the lack of occupancy.
We can think about another situation when your Turn Index is 85, your SPH Index is 105 but your RevPASH Index is now below 100. Even if your SPH index is higher than your competition, your lack of occupancy is driving your performance down and consequently, making you lose revenue.