REVENUE

MANAGEMENT AT
PREGO ITALIAN
RESTURANT
Presented By :
Mukul Bhure- 2023BLP034
Pranav - 2023BLP
Sahil Ahuja - 2023BLP055
Sashikant Chavan - 2023BLP062
Shreshtha Rath - 2023BLP065
Vivek Rana -2023BLP081
 Executive Summary

• Prego is an upscale, trendy, and popular

Italian restaurant in Singapore.
• It has repeatedly been rated as one of
Singapore’s best restaurants.
• The dilemma of  restaurant manager
Francesco Caponer is the
underutilisation of seating capacity
during off peak hours and overutilization
of seating capacity during peak hours.
Which resulted in loss of revenue and for
future business.
 Problem Statement?

1. Less Revenue generated due to

underutilization of seating capacity
during off-peak hours

2. Unavailability of tables and diners

during peak hours which pushes
customers to turn away from
Restaurants. Due to these problems,
Prego was losing revenue and perhaps
even future business
 SWOT
Strengths
1. Prego is an upscale, trendy, and popular Italian restaurant
in Singapore
2. Prego is located right at the heart of Singapore within the
Raffles City complex
3. The Raffles City complex is also conveniently accessible by
public transport and is located next to one of Singapore’s
three main subway train interchanges, the City Hall MRT
Interchange
4. Ample Parking Space
5. High visibility to the large volume of passer-by traffic
6. Operating as a successful restaurant for more than 10 years
7. The highest RevPASH being achieved between 12.30 and
1.30 p.m., and between 7.00 p.m. and 9.00 p.m
 SWOT
Weaknesses
1.Approximately 15 to 30 customers could not be
accommodated immediately for dinners from Tuesdays to
Saturdays
2.Of those asked to wait, approximately 33% did not wait
and left for other restaurants
3.Standard deviation of 37 minutes in meal duration
4.The average time needed to buss each table in order to
be ready for newly arriving guests is about 5 minutes but
during busy periods, the restaurant will take an average of
nine minutes (with a standard deviation of 6 minutes)
5.The afternoon period between 2.30 p.m. and 5.30 p.m.
showed very little activity
6.If a customer with reservations was late or did not show
up, the reserved table might have been sitting empty for
some time even though other guests were waiting
7.No real-time basis tracking system available with hosts for
table management system
 SWOT
Opportunities
1. Huge market of Singaporeans who eat out frequently
2. Deli counter and a waiting area that can
accommodate up to 12 diners
3. Advent of Revenue management system in the
restaurant industry

Threats
1. The restaurant industry in Singapore is fiercely
competitive
 Recommendations

Non-Peak Periods

Differential Pricing :-
• Charging less during Non-Peak
periods
• Bundle the items
• Hold special promotion events
during Non-Peak periods
Recommendations
Peak Periods

• Credit card guarantees for advance

booking
• Implementation of digitization so that a
real time tracking basis to be available
with the host
• Implementation of agile restaurant
billing software to minimize payment
process leading to delay in departure
Assumption
• We are minimizing the standard deviation by 20 mins by implementing
payment gateway(5mins), real tracking(5mins) and training the
employees(10mins).
• In the Non-peak hours, we are giving discount of 30% in happy hours
we are considering that our footfall will increase by 10 customers.
 Profit & Loss Statement

After implementing our recommendation our revenue will go up by 25%

Strategies for Shifting Demand to Match Capacity
 

Strategies for Adjusting Capacity to Match Demand

Thank You