Skip to main content

Metric: RevPASH

Updated

Metrics: Calculate your RevPASH

RevPASH - Revenue per Available Seat-Hour - it sounds complicated, so let's break it down.

  • Seats = how many seats in your restaurant or how many guests you can seat.
  • Hours = how many hours a day you're open, or a measure of time you can seat guests.
  • A Seat-Hour is a combination of the two, used to determine all possible guest service for a day of business, so your seat-hours are all of your seats multiplied by the number of hours you're open.

This figure is the total potential for guest service, so by measuring your revenue compared to your seat-hours, you'll see how efficient your restaurant is at generating revenue. More efficiency and more demand will drive this number up, closer to the total potential revenue. 

You can look at RevPASH as a daily, weekly, or monthly calculation, so make sure you are counting your operating hours accurately if they change by day of week. 

To calculate RevPASH you can:

  • Use Avero to determine your Average Check and Seat Occupancy - then multiply them together for RevPASH
  • Determine your total Seat-Hours (Total Seats * Open Hours) and divide your Revenue by that figure

RevPASH = Revenue / (Available Seats * Hours Open)

-OR-

RevPASH= Seat Occupancy * Average Check

Want us to walk you through it?

If you're currently logged into Avero, click to launch our pop-up guide to see how: RRM 1: Establish a Baseline

Seat-Hour - A metric for available inventory for restaurants. A seat-hour is one operating hour (you are open for business) per seat (potential to seat a guest). 

    • Example: A restaurant has 40 seats at 10 tables and is open from 5PM-10PM. They have 40 seats available for every hour they are open (5 hours), or 200 seat-hours.
    • Calculated: (Total Seats = 40) * (Total Operating Hours = 5) = 200
    • Tip: Seat-Hours don't take into account the table count. 10 4-tops or 20 2-tops would both have 40 seats. This helps you to normalize revenue across available space and adjust your table sizes or seating plans to optimize revenue generation!

RevPASH - Revenue per Available Seat-Hour, this is the restaurant-version of RevPAR, restaurant inventory is determined by "Seat-Hours" (see above) and this metric compares total revenue to available seat-hour (inventory). 

    • Example: Continuing with the above restaurant. Let's say they did $5000 in sales yesterday, their RevPASH would be $25. This means they made $25 per chair for every hour they were open. 
    • Calculated: (Total Revenue = $5000) / (Total Seat-Hours = 200) = $25

Related articles