Optimizing Restaurant Customer Flow and Revenue with Real-Time Coupon Allocation: A Deep Reinforcement Learning Approach

To adjust customer numbers in restaurants in real-time, thus reducing customer churn and improving total revenue, this study diverges from traditional methods such as queuing theory and service capacity adjustments. Instead, we propose a novel approach that utilizes coupons of varying amounts to influence customer dining choices between dine-in and packing. First, we developed a lightweight deep learning model to predict customer flow, followed by the employment of deep reinforcement learning (DRL) to dynamically allocate coupons based on real-time restaurant conditions. An entropy-based mechanism was also integrated to enhance the diversity of coupon allocation, ensuring a strategic balance between exploration and exploitation. We conducted off-line experiments using data from a large chain of fast-food restaurants, which demonstrated that our model can reduce the daily losses of the restaurant by 515 RMB. This study also has implications for the dynamic adjustment of offline store personnel and sequential coupon distribution.

Publication Details

Journal
Journal of the Association for Information Systems
Published
2024-12-15
Primary Topic
Gyrotron and Vacuum Electronics Research
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Optimizing Restaurant Customer Flow and Revenue with Real-Time Coupon Allocation: A Deep Reinforcement Learning Approach

Journal of the Association for Information Systems
Gyrotron and Vacuum Electronics Research
article

Optimizing Restaurant Customer Flow and Revenue with Real-Time Coupon Allocation: A Deep Reinforcement Learning Approach

article en

Abstract

To adjust customer numbers in restaurants in real-time, thus reducing customer churn and improving total revenue, this study diverges from traditional methods such as queuing theory and service capacity adjustments. Instead, we propose a novel approach that utilizes coupons of varying amounts to influence customer dining choices between dine-in and packing. First, we developed a lightweight deep learning model to predict customer flow, followed by the employment of deep reinforcement learning (DRL) to dynamically allocate coupons based on real-time restaurant conditions. An entropy-based mechanism was also integrated to enhance the diversity of coupon allocation, ensuring a strategic balance between exploration and exploitation. We conducted off-line experiments using data from a large chain of fast-food restaurants, which demonstrated that our model can reduce the daily losses of the restaurant by 515 RMB. This study also has implications for the dynamic adjustment of offline store personnel and sequential coupon distribution.

Journal of the Association for Information Systems
Openalex Percentile: Top 55%
Gyrotron and Vacuum Electronics Research
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.