RevPASH

What RevPASH actually means

RevPASH is a metric borrowed from the hotel industry (where it is called RevPAR, revenue per available room). It measures how much revenue you generate per seat, per hour of operation. Where revenue per seat is static, RevPASH factors in how many hours the seat was actually available to sell.

It is the most honest measure of seat productivity because it adjusts for how long you are open.

The formula

RevPASH = Total Revenue / (Seats x Hours Open)

Example: a bar has 60 seats and is open 6 hours a day. That is 360 seat hours per day. If daily revenue is $4,500, RevPASH is $4,500 / 360 = $12.50 per seat hour.

That $12.50 means every seat, every hour, produced $12.50 of revenue on average. You can compare it to yesterday, last week, or the same day last year to see if productivity is rising or falling.

How it is used on the floor

Operators track RevPASH by shift, by section, and by day of week. The question is always: which hours and sections are pulling the weight, and which are dead weight?

If lunch RevPASH is $4 and dinner RevPASH is $22, you have a lunch problem. Either change lunch programming, close at lunch, or accept lunch as a loss leader. Either way, RevPASH made the decision easy.

Industry benchmarks

RevPASH benchmarks vary wildly by segment and location, but rough ranges:

• Quick service / fast casual: $6 to $12
• Casual dining: $8 to $15
• Neighborhood bars: $10 to $18
• High-volume bars / nightclubs: $20 to $40
• Fine dining: $15 to $30

High-volume bars during peak hours can hit $60+ RevPASH for short bursts. A Saturday night 10 PM to midnight might run $80 RevPASH, while Tuesday afternoon runs $4.

Why it beats straight revenue

Straight revenue gets compared across days that are not equal. A 4-hour lunch shift and an 8-hour dinner shift produce different revenue for different reasons. RevPASH strips the time factor out so you can compare productivity on equal footing.

It is also the only way to compare a 60-seat bar to a 100-seat bar meaningfully. A $3,000 night is huge for the 60-seat bar and average for the 100-seat bar.

Common mistakes

Tracking RevPASH without separating by daypart (the full-day number hides everything interesting). Using available seats instead of occupied seats (different metric). Not adjusting for patio seasonality. Treating low RevPASH as failure instead of investigating why.

How PourIQ handles it

PourIQ does not directly compute RevPASH (it is a seating metric, not an inventory metric), but the revenue and shift data it pulls from POS can feed into a RevPASH calculation in any spreadsheet or BI tool. The beverage portion of the number is what PourIQ optimizes.