Research Article
The Impact of Alcoholic Beverage Order Frequency on Restaurant Revenue
1 Yonsei University, 2 Kyung Hee University
Published: January 2025 · Vol. 54, No. 1 · pp. 239-252
DOI: https://doi.org/10.17287/kmr.2025.54.1.239
Full Text
Abstract
Unlike other service industries where revenue is proportional to sales increase, in the restaurant industry, because of the limited number of tables, table occupancy duration time is an important factor affecting sales in restaurants. In other words, an excessively lengthy service consumption time (stay duration time) for restaurant customers will decrease turnover ratio, leading to revenue decrease. Thus, this study examines the impact of alcohol orders on the duration of customers’ visits and the influence of this duration on restaurant revenue with a moderation effect of full-capacity situations. For the empirical analysis, transaction data was collected from a restaurant in South Korea. The findings indicate that alcohol orders increase customers’ stay duration time, which positively increases restaurant revenue. However, this relationship between stay duration time and restaurant revenue weakens as full-capacity time increases. This study is the first to empirically examine the relationship between the number of alcohol orders and restaurant revenue from a process perspective, thereby contributing to the literature on restaurant revenue management. Furthermore, the empirical analysis conducted using actual transaction data not only contributes to the related literature but also provides implications that can be directly applied to the restaurant operations.
