Abstract
Restaurant revenue management focuses on maximising revenue from perishable, time-limited capacity by selling the right product (food, drinks, and seats) to the right customer at the right time for the right price. In recent years, often driven by new digital tools, dynamic price differentiation strategies have become common place in many service settings. While such pricing strategies have started to penetrate the restaurant sector as well, there remains a lack of consolidated conceptual frameworks for analyzing dynamic price differentiation strategies in restaurants. To that end, we develop a novel typology for dynamic price differentiation in restaurant revenue management. In particular, we focus on three types of dynamic price differentiation: time-based (e.g., pricing tied to how long a table is held), service delivery mode-based (e.g., price differentiation based on how and by whom/what service is delivered) and convenience-based price differentiation (e.g., expedited service at a price premium). We finish by suggesting avenues for future research to drive acceptance.