Cornell Tool Allows Restaurants to Evaluate Menu Specials

Sep 09, 2016

Contact: Carol Zhe, 607.254.4504, caz9@cornell.edu

FOR IMMEDIATE RELEASE:
 
Cornell Tool Allows Restaurants to Evaluate Menu Specials

Ithaca, NY, September 9, 2016 - A new tool published by the Cornell Center for Hospitality Research (CHR) helps restaurant operators calculate the likely monetary outcomes of offering off-peak specials. The tool and its accompanying explanation, “Instructions for the Early Bird & Night Owl Evaluation Tool (EBNOET) v2015,” were developed by Gary M. Thompson, a professor at the School of Hotel Administration. Both documents are available at no charge from the CHR.

“I wanted to provide restaurant owners with a better estimate of the revenue effects of early bird and night owl specials,” said Thompson. “The typical back-of-envelope calculation can easily include the effects of cannibalizing regular sales that occurs when people who were going to eat anyway take the special instead. But what is hard to capture in such calculations is the capacity cannibalization that occurs, that is, the seats being occupied, which further reduces the number of full-fare customers served. I also include a way to calculate near-optimum table occupancy.”

The restaurant tool is based on user inputs into an Excel file. The tool also considers the revenue from new customers attracted by the early bird or night owl promotions, as well as the level of increased business needed to achieve the net monetary value target for the promotion.

About the Center for Hospitality Research
The purpose of the Center for Hospitality Research is to enable and conduct research of significance to the global hospitality and related service industries. CHR also works to improve the connections between academe and industry, continuing the School of Hotel Administration's long-standing tradition of service to the hospitality industry. Founded in 1992, CHR remains the industry's foremost creator and distributor of timely research, all of which is posted at no charge for all to use. In addition to its industry advisory board, CHR convenes several industry roundtables each year for the purpose of identifying new issues affecting the hospitality industry.

Center Members: Accenture • Access Point Financial, Inc. • Barclaycard US • Cvent • Davis & Gilbert LLP • Deloitte & Touche USA LLP • DerbySoft • Duetto • Four Seasons Hotels and Resorts • Fox Rothschild LLP • Hilton Worldwide • Host Hotels & Resorts • Hyatt Hotels Corporation • IDeaS Revenue Solutions • InterContinental Hotels Group • Jumeirah Group • Marriott International • NTT DATA • Preferred Hotels & Resorts • priceline.com • PwC • The Rainmaker Group • RateGain • ReviewPro • Sabre Hospitality Solutions • STR • Taj Hotels Resorts and Palaces • Tata Consultancy Services • Wipro EcoEnergy • Wyndham Hotel Group