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Case 8

Coyote Loco
Evaluating Opportunities for Revenue Management
SHERYL KIMES, JOCHEN WIRTZ, AND CHRISTOPHER LOVELOCK

The owners of a popular restaurant have conducted a

detailed study of its operations, including variations
in demand by day of the week and time of day. They
wonder how to use the resulting insights to improve
profitability.
Were turning customers away during peak hours
and operating half empty at other times, declared
Elaine Alexander. As a result, our margins are
slim. She and her husband, John, were co-owners of
Coyote Loco, a 99-seat restaurant in Ithaca, a college town of 70,000 inhabitants located on one of
the scenic Finger Lakes in upstate New York.
Rather than simply accepting these demand
swings as a fact of life in the food service business,
the Alexanders were eager to pursue ways of resolving the financial problems that the situation presented. Through the nearby School of Hotel and
Restaurant Administration at Cornell University,
they had learned that a few restaurants were exploring the possibility of adopting revenue management strategies similar to those used in the airline
and hotel industries and wondered whether such
an approach might work in their own establishment. (See Appendix A for an overview of revenue
management.)

THE RESTAURANT
Located on the outskirts of Ithaca, about a mile from
the Cornell University campus, Coyote Loco offered
moderately priced California-style Mexican food.
Lunch was served from 11:00 A.M. to 2:30 P.M., then
snacks until 6:00 P.M., after which dinner was served
through 11:00 P.M. To encourage bar sales during the
slow period between lunch and dinner, there was a
happy hour from 4:00 P.M. to 6:00 P.M. on weekdays, during which drinks were offered for half price.
Staffing levels varied, ranging from three to ten in
the front of the house and three to six in the kitchen,

depending on anticipated demand levels. There was

always a manager on duty. About 60 percent of the
employees were full time and included a mix of local
residents and students. Front-of-the-house employees
were mostly in their twenties, and there was a fairly
high turnover rate among the student employees
(particularly at the end of the school year). The
restaurant also employed two full-time managers.
Elaine Alexander worked in a management capacity
on a regular basis, but John Alexander was not involved in day-to-day operations.
The Alexanders had operated the restaurant
since 1991. The building was originally a train station
and had subsequently housed several restaurants.
Working with two other partners, John and Elaine
purchased the building, remodeled it, and opened
Coyote Loco. It quickly proved successful and attracted a good mix of local people and students.
Although the bar was popular, the Alexanders had
tried to ensure that the restaurant did not become a
bar destination, because they did not want to have
the associated liability problems. They had a large
group of loyal customers who dined at the restaurant at least once a week. Reflecting the extensive
university community, Ithaca boasted more than 150
restaurants offering a wide array of cuisines, dining
styles, and price levels. Coyote Loco was less than a
mile from an area known as Collegetown, which
had a wide variety of restaurants.
The building housing Coyote Loco (Crazy
Coyote) was a long wooden structure, painted
blue on the outside with aqua window frames and
decorated with several large yellow stars. The interior was divided into a main restaurant and a bar
area, which was reached by stairs, as it was several
feet higher than the main floor. The restaurant
area featured four-foot-high wooden paneling and
cream-colored walls, on which hung reproductions
of artwork from galleries in Santa Fe, New
Mexico, including fantasy paintings of coyotes. The
bar area featured lighter-colored woodwork, and

The authors acknowledge the assistance of Michael Wat-lon Ma. Certain confidential data have been disguised.
2003 by Sheryl E. Kimes, Jochen Wirtz, and Christopher H. Lovelock.

552

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Coyote Loco

its blue ceiling with yellow stars reprised the exterior design.
There were 68 seats in the restaurant area: two
6-tops (tables with seats for six) and fourteen 4-tops.
The bar, which was used for dining on busy nights
and also served as the de facto waiting area for notyet-seated diners, had 31 seats (eleven 2-tops and
nine bar stools). During Ithacas warm-weather summer months, an outdoor patio provided seating for an
additional 66 customers. Exhibit 1a shows the floor
plan, 1b the restaurant, and 1c the bar.
The menu comprised approximately eleven appetizers, thirty to forty entres, and about half a
dozen desserts. Individual appetizers ranged in price
from $2.99 to $6.99, and entres accompanied by a
salad ranged from $11.99 to $14.99, but there was
also a wide array of inexpensive dishes, such as enchiladas and pollo verde, priced between $6.99 and
$8.99 (see Appendix B). All items were also available for takeout. Coyote Loco had a full bar, offering a wide range of alcoholic beverages. Its signature
margaritas were very popular and sold for $5. Beers

EXHIBIT 1a

ranged in price from $2 to $4, and the restaurant offered an array of wines by the glass or the bottle.

ESTABLISHING THE BASELINE

Because Coyote Loco had a fixed seating capacity,
revenue management analysis recognized that its financial performance was a function of not only how
many seats were occupied from one hour to another
but also how much revenue was earned per available seat hour, a measure referred to as RevPASH.
To create a profile of their current operations, the
Alexanders collected information on guest-arrival
patterns over time, the mix of party sizes patronizing the restaurant, how long they remained at the
restaurant, and the amount of each partys check.
Guest-Arrival and Spending Patterns
Data on arrival patterns at Coyote Loco were captured on an hourly basis, using the restaurants
Micros 2700 POS system. There were significant

Coyote Loco Floor Plan

Entrance

Bar

tS

os

Stairs

n
ta
d

To

ile

Patio

ts

Door to Outside

Ki

tch

en

Parking

Key
Table
Bar Stool

553

Note: The bar is elevated and can be reached from the main restaurant via four
steps from the restaurant.

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Coyote Loco
EXHIBIT 1b

Interior of Coyote Loco Restaurant

The restaurant layout in this photo differs from the floor plan shown in Exhibit 1a, which shows
the usual layout. The layout shown in the photo was arranged for the Valentines Day period.

variations over one-hour intervals during peak periods. Although POS (point-of-sale) data contained
detailed information on all transactions, including
guests spending, it had some limitations.
For example, the opening time of a check might
not reflect the arrival time of guests who had waited
to be seated. Similarly, if the cashier had not promptly
rung up the check once the table was vacated, the
closing time of the check might not indicate exactly
when the guests left the dining room. However, as
more than 95 percent of the checks were opened
within five minutes of true arrival, the system was
considered accurate in estimating meal timing.
Coyote Loco was busiest on Friday and Saturday
nights between 6:00 P.M. and 8:00 P.M. Sunday was the
next-busiest night, with the other nights of the week
being much slower. The lunchtime business was relatively slow every day (Exhibits 2 and 3).
Party Size Mix
The Alexanders also collected information on the
party size mix (Exhibit 4). They had thought that the

restaurant appealed to parties of four or more customers, but the data surprised them, showing that
over 60 percent of customers came in parties of only
one or two. Less than 5 percent of dinner patrons
came in parties of six or more.
Estimating Unconstrained Demand
One limitation of the actual-arrivals data was that
the number of arrivals did not represent the true,
unconstrained demand (defined as the number of
customers a restaurant could handle if its capacity
were unlimited). For instance, at busy times, some
customers who wanted to dine at the restaurant
might be turned away, leave after waiting for a
while, or simply observe from the doorway that the
restaurant was busy and never even enter.
Observation showed that on Fridays and
Saturdays, approximately 20 customers each night
were turned away or walked out before being seated.
However, diners seeking reservations were rarely disappointed, as nearly all reservations were accepted
and honored.

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Coyote Loco

EXHIBIT 1c

EXHIBIT 2

Coyote Loco Bar

Guest Arrival Patterns at Coyote Loco

80
70

Number of Arrivals

60

Key

50

Sunday
Monday

40

Tuesday
Wednesday
Thursday

30

Friday
Saturday

20
10
0
11 AM 12 Noon 1 PM

2 PM

3 PM

4 PM 5 PM
Hour

6 PM

7 PM

8 PM

9 PM

555

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Coyote Loco
EXHIBIT 3 Number of Guests Arriving for a Meal by Time of Day and Day of Week (37 guests
arrived for a meal e.g., between 6:00 P.M. 6:59 P.M. on Tuesday)
11 AM

Sunday
Monday
Tuesday
Wednesday
Thursday
Friday

12 PM

3
4
9
8
8

1 PM

30
38
42
43
39

2 PM

4
8
11
11
14

3 PM

2
2
3
3
4

1
2
3
5

Lunch

Dinner

10.6%
57.5
15.5
7.9
5.2
1.1
0.5
1.6

8.6%
51.5
13.9
12.7
4.1
4.6
2.0
2.5

6 PM

7 PM

8 PM

9 PM

41
21
37
35
40
75

25
13
25
17
24
57

17

2
8
2
10
12

23
19
24
26
27
37

12
13
2
29

3
1
5
12

Course Timing
To understand how long guests spent on the different elements of the meal, a detailed timing study
was conducted during dinner hours for 12 nights
during February 2003, regarded as a representative
period. Student observers sat in an unobtrusive spot
and recorded the times of the various transactions.
The findings from this study (Exhibit 6) helped to
verify the results from the POS data.
Approximately 21 minutes after the server first
approached the table, appetizers were delivered.

Meal Duration
Analysis of the POS data showed that the average
dining time was approximately one hour, with a standard deviation of about thirty minutes. However,
the Alexanders believed that there were significant

EXHIBIT 5
Minutes

5 PM

variations in these averages from one time of day to

another and even between different days of the
week. So a time study was conducted, and its findings
confirmed this belief. Exhibit 5 shows the means and
standard deviations of dining times by hourly period
and by day of week.

EXHIBIT 4 Distribution of Number of Persons in Each

Guest Party
1
2
3
4
5
6
7
8+

4 PM

Meal Duration by Day of Week and Time of Day: Mean and (standard deviation) in Hours and
11 AM

12 PM

1 PM

2 PM

3 PM

4 PM

5 PM

6 PM

7 PM

8 PM

9 PM

n.a.
1:04
(0:01)
1:40
(0:53)
1:14
(0:11)
1:28
(0:39)
1:36
(0:29)
1:07
(0:17)

1:23
(0:50)
1:14
(0:29)
1:18
(0:31)
1:12
(0:32)
1:30
(0:43)
1:03
(0:26)
1:17
(0:38)

1:15
(0:26)
1:09
(0:26)
1:24
(0:39)
0:59
(0:24)
1:11
(0:31)
1:10
(0:22)
1:15
(0:35)

1:16
(0:30)
0:57
(0:16)
1:19
(0:37)
1:16
(0:28)
1:18
(0:24)
1:03
(0:26)
1:12
(0:34)

1:18
(0:40)

n.a.

n.a.
1:21
(0:24)
0:57
(0:22)
1:26
(0:21)
1:08
(0:23)
1:11
(0:27)

n.a.
1:05
(0:14)
0:00
(0:00)
0:54
(0:25)
1:02
(0:13)
0:55
(0:12)

Sunday
Monday

1:04
(0:20)
Tuesday
0:58
(0:37)
Wednesday 1:11
(0:37)
Thursday
1:15
(0:16)
Friday
0:44
(0:12)
Saturday
1:08
(0:31)

1:04
(0:31)
1:08
(0:29)
1:20
(0:29)
1:19
(0:40)
1:21
(0:43)
1:10
(0:43)

1:18
(0:40)
1:00
(0:17)
0:58
(0:29)
0:56
(0:30)
1:20
(0:34)
1:20
(0:25)

1:05
(0:11)
2:02
(0:12)
1:14
(0:42)
1:01
(0:05)
0:47
(0:11)
1:21
(0:23)

n.a.
n.a.
0:38
(0:34)
2:03
(0:48)
1:01
(0:29)
0:48
(0:17)

Example: Guests arriving for a meal between 5:00 P.M.5:59 P.M. on Tuesday spent an average 1 hour 18 minutes at
their table (with a standard deviation of 31 minutes.
n.a. refers to times when the restaurant was open but there was no business activity.

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Coyote Loco

Average Check and Revenue per Available

Seat Hour (RevPASH)
By looking at the average check and the revenue
per available seat hour, it was possible to calculate
seat occupancy. The average check per person varied by time of day and day of week and averaged
$14.55 (Exhibit 7). As expected, the RevPASH also
varied widely, ranging from zero to a high of $10.80
on Saturdays at 7:00 P.M. (Exhibit 8). The highest
RevPASH figures were achieved on Fridays and
Saturdays between 6:00 P.M. and 8:00 P.M, times
when all tables were often occupied.

EXHIBIT 6 Course Timing: Mean and (Standard

Deviation) in Hours, Minutes, and Seconds
Mean

Seat to Greet
Greet to Drinks
Drinks to Order
Order to Appetizer
Order to Entre
Entre to Check Request
Check Request to Check
Delivered
Check Delivered to Check
Picked Up
Check Picked Up to
Change
Change to Departure
Departure to Bussed
Bussed to Reseated
Total Time (Seated to
Departure)

Standard
Deviation

2:12
7:01
2:52
8:35
18:01
28:24
3:21

2:17
5:31
2:57
5:06
7:49
15:42
2:28

4:31

5:35

1:59

1:54

5:25
18:12
5:41
1:09:07

6:47
16:38
6:21
23:23

Interactions with Customers

Note: The sum of the meal segment times does not add to the total
dining time (seated to departure), because of rounding difference.

Entres were delivered a little more than eighteen

minutes after the appetizer was delivered. The payment process took about twelve minutes. On average, the total dining time (from arrival at the table
to departure) was one hour and nine minutes, with a
standard deviation of about 23 minutes.
EXHIBIT 7

EXHIBIT 8
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday

Less than 10 percent of Coyote Locos customers

made reservations. Experience showed that customers holding reservations sometimes arrived late
(and occasionally not at all) or showed up with
more or fewer people in their party than originally
indicated. When an appropriately sized table became available near the reserved time, the manager
held that table. It was not unusual to see reserved tables remain empty for over half an hour, even when
other guests were waiting.
The host was responsible for greeting guests,
handling takeout orders, answering the phone, and
helping with service. The waiting space at Coyote
Loco was somewhat inadequate during busy periods; when the waiting-time estimates communicated

Average Check by Day of Week and Hour of Day

11 AM

Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday

557

$8.27
$10.78
$12.15
$12.36
$11.50
$14.33

12 Noon

$11.60
$10.93
$9.69
$10.98
$11.30
$11.46

1 PM

$17.74
$12.04
$8.54
$9.78
$10.70
$10.00

2 PM

$10.67
$12.33
$11.23
$15.27
$11.38
$15.54

3 PM

$7.00
$3.50
$14.41
$8.58
$13.41

4 PM

$14.44
$14.67
$21.28
$16.29
$14.18
$21.48

5 PM

6 PM

7 PM

8 PM

9 PM

$15.36
$17.39
$16.77
$17.43
$15.62
$18.67
$16.76

$16.66
$19.66
$18.34
$17.11
$18.97
$16.85
$17.31

$17.19
$16.38
$18.84
$19.02
$19.04
$17.58
$17.79

$15.17

$12.29

$16.68
$15.57
$20.94
$16.35
$16.95

$17.03
$11.47
$11.88
$16.77
$19.73

7 PM

8 PM

9 PM

$1.59
$0.00
$0.98
$0.87
$0.37
$3.95
$5.28

$0.03
$0.00
$0.35
$0.05
$0.83
$1.43
$0.96

RevPASH (revenue per available seat hour) Patterns by Day of Week and Hour
11 AM

12 Noon

1 PM

2 PM

3 PM

4 PM

5 PM

6 PM

$0.00
$0.18
$0.17
$0.46
$0.74
$0.67
$0.18

$0.00
$2.13
$2.12
$2.06
$2.36
$2.72
$0.91

$0.00
$0.36
$0.51
$0.36
$0.56
$0.88
$0.61

$0.00
$0.11
$0.13
$0.13
$0.22
$0.25
$0.42

$0.00
$0.02
$0.00
$0.01
$0.23
$0.35
$0.14

$0.00
$0.27
$0.66
$0.14
$0.99
$1.20
$0.91

$2.08
$1.66
$1.84
$2.39
$2.22
$4.30
$4.03

$5.43
$2.44
$3.59
$2.90
$4.26
$9.08
$9.24

$3.00
$1.15
$2.43
$1.56
$2.42
$7.78
$10.80

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to guests by the host proved overly optimistic, which

happened quite frequently, customers sometimes
became frustrated, and some even left before being
seated.
Once a table became available, the host was notified and tried to find the next party on the waiting
list. There were often lags between when the table
became ready, the host was notified, and the party
was identified and informed. After the party had
been seated, the server responsible for that table
was expected to greet the customers and offer to
take drink orders. But if he or she was unaware of
the new party, already busy, or simply inattentive,
the customers might be kept waiting.
At Coyote Loco, servers had to walk up several
stairs to the bar to pick up drink orders. On busy
nights when the bar area was full, the servers often
had difficulty navigating their way through the
throng of customers. The bartender was, of course,
busy at such times, and so servers might have to
wait before their customers drink orders could be
filled. If the bartender appeared to be exceptionally

EXHIBIT 9

busy, the server might even leave to attend to

other duties. As a result, the party at the table
might be kept waiting some time before receiving
its drinks.
Having delivered drinks, the server offered to
take the partys meal orders. Servers were trained
to suggest possible appetizers, but the large number of unfamiliar Mexican-style entres on the
menu often confused diners, in which case they
might ask their server to explain the courses. If
servers were also unfamiliar with how the various
menu items were prepared, this could delay things
further. Not all customers ordered both appetizers
and entres, especially as every table was supplied
with ample servings of chips and salsa. Potential
problems included long waits and poor timing of
the appetizer and entre delivery. In addition, food
runners sometimes delivered the wrong order to a
table.
After clearing away the entre dishes, servers
approached the table to offer dessert and coffee. On
average, about 31 percent of customers ordered a

Monthly Profit and Loss Statement at Coyote Loco

Revenue

Food
Beverage
Total

$49,721
$20,696
$70,417

71%
29%

Expenses

Cost of food and beverage

Labor expenses
Controllable expenses
Cleaning
Laundry
Paper goods
R&M
Rentals
Small wares

$20,687
$26,083
$7,707

29%
37%
11%
$401
$844
$739
$1,424
$329
$848

Expenses

Supplies
Miscellaneous
Utilities
Marketing
Uncontrollable expenses
Credit card
Taxes
Rent
Total expenses
Net Income

$219
$316
$2,587
$1,359
$11,268

2%
16%
$1,461
$1,059
$8,748

$67,104
$3,313

5%

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Coyote Loco

dessert (ranging in price from $3.50 to $5.00), and 25

percent requested coffee or tea, which cost $1.25.
Some customers concluded their meals quickly, but
others took their time. Once the customers were
ready to leave, they requested the check. But this
process might be delayed if they had problems finding their server, if the latter were slow in arranging
for payment, or if the payment-processing systems
were operating sluggishly.
Once they had paid, most customers left the
restaurant, but some chose to linger. If the host forgot to offer a farewell to departing guests and
record that their table had been vacated, the server
and busser might not notice that this table was now
ready for bussing and resetting.

559

DEVELOPING A REVENUE
MANAGEMENT STRATEGY
John and Elaine Alexander knew that their profit
margin at Coyote Loco was relatively small. In a representative month, they had a net income of $3,313
on revenues of $70,417 (Exhibit 9). Labor was their
highest expense, followed by food and beverage purchases. They were very interested in examining how
the data from their study might be used to develop a
revenue management strategy that would improve
the restaurants profitability. However, they recognized that changes in existing procedures could affect both customers and staff members and wanted
to minimize any negative impact.

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APPENDIX A

Restaurant Revenue Management

Revenue (or yield) management was first developed in the mid-1980s and has been successfully
used by the airline and hotel industries for many
years. However, it has only recently been applied to
the restaurant industry.
Revenue management is a sophisticated form
of supply-and-demand management. Its primary
focus is managing customer demand through the
use of variable pricing and capacity management to
maximize profitability. The four strategic levers for
revenue management are calendar (reservations,
bookings), clock (duration controls, turnover rates),
capacity (demand smoothing and capacity adjustment), and pricing (price fences,1 discounts).Through
the application of information technology, pricing
strategy, and service product/process design, revenue management helps companies to sell the right
product at the right time to the right customer for
the right price.
A variety of methods, both mathematical and
managerial, are available to capacity-constrained
service businesses to estimate unconstrained demand (the number of customers a business could
handle if its capacity were unlimited). Restaurants,
for example, can have someone count the number of

1Fences

guests who walk out before being served and can

also track the number of requests for reservations
that must be declined during busy periods.
Experts believe that revenue management is
particularly suited for the restaurant industry, reflecting its relatively finite capacity of available tables, perishable inventory, microsegmented markets
of restaurant guests, fluctuating demand, low ratios
of variable to fixed costs, and services that can be reserved in advance or delivered after a queuing delay.
Success in revenue management is typically
measured in revenue per available time-based inventory unit. In the airline industry, this becomes
revenue per available seat mile; in the hotel industry, revenue per available room night; and in the
restaurant industry, revenue per available seat hour
(RevPASH). The revenue per available time-based
inventory unit can be calculated by multiplying the
capacity utilization by the average price.
To be able to apply revenue management, a
restaurant should (1) document its baseline performance, (2) understand the determinants of that
performance, (3) develop a revenue management
strategy, (4) implement the strategy, and (5) monitor performance.

are rules or procedures that prevent or discourage customers willing to pay a higher price from trading down into a lower-price
category. Physical fences include observable customer characteristics (e.g., age, disability) and service characteristics, such as travel
class, room size, or package category. Nonphysical fences include advance purchase requirements, cancellation or rebooking penalties,
requirements for Saturday-night stayovers, time of day/week/season, and group membership or affiliation (e.g., AAA, AARP, alumni).

560

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APPENDIX B

Selected Pages from Coyote Locos Menu

CALAMARE CON CHIPOTLE Deep-fried squid served with an earthy, spicy dipping sauce made with
chipotle chilies 5.99
NACHO GRANDES A generous portion of crisp, fresh-made corn tortilla chips, melted jack cheese, sour
cream, Loco Beans, guacamole, grilled chicken, and choice of salsa. 6.99
FLAUTAS CON PAPAS Y QUESO Three crisp corn tortillas filled with jack cheese, potatoes, and roasted
peppers. Served with guacamole and choice of salsa. 5.99
PIZZA CON QUESO DE CABRA An open-faced crisp flour tortilla, topped with goat cheese, roasted red
peppers, and herbs. 6.99
ANTOJITOS COMBO Need appetizers for your entire table? Can t make a decision? Try our combo
platter that is built to suit your crowd. The combination of jalapeo rellenos, Loco onion rings, flautas,
nachos, and buffalo chicken fingers gives you something for everyone. 9.99 (serves 4) 17.99 (serves 8)
JALAPEOS RELLENOS Jalapeo chile halves filled with rich cream cheese, then breaded and deepfried. Served with an orange and cilantro dipping sauce. 5.99
SOPA TARASCA A black bean and roasted tomato soup with anaheim chilies and fresh herbs. 2.99
QUESADILLA CON POLLO Folded, toasted flour tortillas filled with grilled chicken, jack cheese, and
topped with choice of salsa 6.99

(Our house specialties - each served with a salad)

POLLO COLORADO CON CREMA Tender chicken breast in a crisp seasoned buttermilk coating,
finished with our Salsa Colorado made with ancho chilies, topped with sour cream. Served with Loco Rice
and Beans. 12.99
POLLO EN MOLE POBLANO Mexico s most complex and intriguing sauce, that must be tasted to be
believed. Made with ancho and pasilla chilies, almonds, sesame seeds, coriander, cloves, cinnamon,
anise, and a touch of chocolate served over a sauteed chicken breast. Served with Loco Rice and Beans
on the side. 12.99
CAMARONES EN CHILI PASILLA Jumbo shrimp sauteed in butter-flavored pasilla chilies, citrus zest, nd
a touch of garlic. Served with Loco Rice and Beans. 14.99
CAMARONES CON PESTO Grilled shrimp in a roasted tomato sauce topped with our goat cheese
cilantro pesto. Served with Loco Rice and Beans. 14.99
BISTEC A LA PARILLA Tender steak grilled to order and served with pasilla chili butter (on the side if
you like). Topped with Loco onion rings and a side of Loco Beans. 14.99
VERDURAS CON PASTA PENNE Grilled zucchini, bell peppers, eggplant, and onions tossed with olive
oil seasoned with a light touch of chipotle chilies and lime zest served on a bed of pasta and garnished
with cilantro. 11.99
TAMALES CON FRIJOLES Mexican corn meal with corn, green chilies, and jack cheese spread on a
corn husk and topped with black bean chili. Rolled and cooked in a steamer. Served with Loco Rice and
salsa. 12.99
A 15% gratuity may be added to parties of eight or more.

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Selected Pages from Coyote Locos Menu

(Have it your way - as a burrito or as a taco!)

BURRITOS A large flour tortilla stuffed to the legal limit with Loco Beans, jack cheese, and choice of
filling. Served with Loco Rice and choice of salsa.
TACOS Corn tortillas served either soft or fried with shredded lettuce, cheese, and choice of filling. Both
are served with Loco Rice and Beans.
SIX PACK RACK Sample one of each filling in either corn shells (tacos) or flour tortillas (burritos). pollo
verde, verduras, calabacitas, puerco pibil, chili colorado, and frijoles. 10.99
POLLO VERDE Our first and forever favorite, served at our booth at the Farmer s Market since 1989.
Chicken simmered in a tomatillo sauce. 8.99
VERDURAS Potatoes, carrots, onions and chipotles chilies. 7.99
CALABACITAS Fresh seasoned mushrooms, zucchini, and corn. 7.99
PUERCO PIBIL Shredded braised pork in a Yucatecan sauce of orange and achiote. 8.99
CHILI COLORADO Shredded beef in an ancho chili sauce. 8.99
FRIJOLES Homemade black bean chili. 7.99

Study Questions
1. What do you see as the key differences between
hotels, airlines, and restaurants in relation to
possibilities for implementing revenue management strategies?
2. Review the study findings presented in Exhibits 2
through 8. In each instance, what are the key
insights?

3. What specific actions might be taken to improve

profitability at Coyote Loco? Discuss the pros
and cons of each.
4. Propose a revenue management strategy for
Coyote Loco and estimate its financial impact.
How might the Alexanders minimize any potential negative impacts on customers and staff?