Revenue per Available Seat Hour: Formula for Restaurants

What is revenue per available seat hour?

Revenue per available seat hour (RevPASH) divides dine-in revenue for a defined period by the number of seat-hours made available during that period. Boston University’s School of Hospitality Administration describes the formula as revenue ÷ (available seats × hours open) and gives an equivalent method based on seat occupancy and average check. The metric accounts for both capacity and time; it is not a profit measure.

RevPASH = dine-in revenue ÷ available seat-hours.

For a stable capacity, available seat-hours equal available seats × hours offered. If a 60-seat dining room is available for 8 hours and generates ₹2,40,000 in the matching dine-in revenue period, available seat-hours are 60 × 8 = 480. RevPASH is ₹2,40,000 ÷ 480 = ₹500 per available seat hour. This example is hypothetical and does not represent an industry benchmark.

Define seats, time and revenue

Choose whether a seat means a physical chair, a saleable seat or another defined capacity unit, then use the same definition in every comparison. If a section is closed, a seat is unavailable for part of the measurement period, or a restaurant changes configuration, record that adjustment. When seat availability varies by hour, calculate seat-hours by time interval and add them rather than multiplying one fixed seat count by the full duration.

Use a revenue figure that matches the included service and time window. If the calculation is for dine-in lunch, do not include delivery revenue or dinner hours in the numerator or denominator. Decide how discounts, voids, taxes and service charges are treated based on the report definition used by the restaurant, then keep that treatment consistent. The BU example uses a particular revenue/check and occupancy model; it does not set one universal accounting policy for every venue.

Alternative form using occupancy and average check

If the measures use the same period and definitions, RevPASH can also be expressed as seat occupancy × average check. For example, a 50% occupancy rate and ₹1,000 average check yield ₹500 per available seat hour under the stated formula. This alternative is useful only if “occupancy” and “average check” are defined over the same seat-hours and guest population as the direct calculation.

Worked service-period example

Suppose 40 seats are available for a 5-hour dinner service. Capacity is 200 available seat-hours. If the restaurant records ₹1,20,000 in the revenue category chosen for that same service, RevPASH is ₹1,20,000 ÷ 200 = ₹600 per available seat-hour. This invented example excludes no items by implication: the restaurant must state whether revenue is net of discounts, refunds, taxes or delivery and whether only dine-in sales are included.

If seats close temporarily, document whether capacity uses scheduled seats, actual available seat-hours or another convention. Keep the time window consistent between revenue and capacity. A restaurant may calculate the measure by hour to see when revenue was recorded against available capacity, but each interval needs the same scope. RevPASH is not profit per seat: it does not subtract food, labour or overhead. It also differs from table turnover, covers per seat and average order value. Compare only values built from compatible periods and definitions.

Do not confuse RevPASH with table turnover, revenue per seat for a whole day, or average check. Turnover counts uses of a seat or table in a period; average check measures revenue divided by guests; RevPASH spreads revenue over capacity and time. Each answers a different question. See restaurant cost per cover, restaurant table turnover calculation, and average order value for a restaurant.

Compare periods carefully

Compare the same service periods, seat definitions and revenue scope. A longer opening period increases the available-seat-hour denominator even if total revenue is unchanged. A section closure or a private event can change capacity. Those changes should be recorded rather than silently treated as a change in guest demand.

RevPASH can describe historical revenue relative to capacity and time. It does not establish profitability, a recommended price, the cause of a difference, or a target a restaurant should pursue. Use the metric alongside costs and operational context, and avoid comparing restaurants with different accounting or seat-availability definitions as if the results were directly equivalent.

Calculation worksheet

For the example, record dine-in revenue of ₹2,40,000 for the selected interval, 60 available seats, and 8 matching hours offered. That gives 480 available seat-hours and RevPASH of ₹500. Preserve the supporting sales report, schedule and capacity assumptions alongside the result; these figures show arithmetic only.