How Restaurant Operating Hours Data Can Drive Profitability

By Sebastian Fernandez
Chief Research & Development Officer

Increasing profitability in today’s quick-service restaurants (QSR) requires more than just price increases. With customers experiencing inflation fatigue, quick-service restaurant leaders must combine pricing strategies with operational efficiency.

One of the most overlooked drivers of QSR performance? Hours of operation.

At Revenue Management Solutions (RMS), more clients are asking our experts to evaluate operating hours through a data-driven lens, and for good reason. Since McDonald’s announced its extended late-night hours, many QSR brands are considering following suit.

“Clients want to know if there are opportunities to extend hours in some locations and/or contract hours in other areas. They understand this cannot be a blanket approach, and that’s where we come in with our tailored, store-by-store approach,” says Richard Delvallée, RMS’s senior vice president of consulting services.

RMS’s targeted approach has already helped clients generate nearly $100 million in additional sales revenue by extending late-night hours in certain locations.

Why Restaurant Hours of Operation Matter More Than Ever

Consumer dining habits are shifting fast. According to a recent RMS survey:

• 34% of customers said they’re dining out more late at night
• 70% said they’re ordering delivery during off-peak hours

Yet many brands still apply a one-size-fits-all approach to hours of operation. In today’s market, that’s a missed opportunity.

Instead, RMS combines store-level POS data with customer demand patterns, operational and labor costs and restaurant trade area demographics to measure operating hours against profit.

“Sometimes, the answer is to extend late-night or early-morning hours,” Delvallée notes. “In other cases, we help clients identify the point of diminishing returns. Our goal is to find the profit-maximizing window for each location.”

For example, a restaurant near a university may benefit from operating later, especially during finals season or major events. Meanwhile, a suburban location that serves commuters may see stronger returns from expanding breakfast service.

Across the restaurant locations RMS evaluated in 2025, our analytical experts found opportunities to drive incremental revenue for our clients by simply adjusting hours of operations.

The RMS Process for Evaluating Hours of Operation

Our proprietary process involves analyzing store-level transactional data to identify hourly traffic patterns and demand surges. Then, we model, analyze, and estimate each restaurant’s potential sales based on its trade area demand drivers.

Each store receives a tailored report showing revenue potential, cost assumptions and implementation scenarios.

Stores should test the RMS strategy for at least six months. Continuous data tracking also reveals whether a successful strategy is ready to be rolled out across more locations.

Driving Same-Store Sales With Operational Strategy and Marketing

In today’s competitive QSR landscape, extending hours can be a subtle but powerful way to improve profitability, but it has to be backed by data, otherwise, brands risk increasing costs without seeing a return.

Profitability doesn’t stop with operations. After a decision to extend hours, marketing must play a supporting role in driving traffic. Sometimes we see a disconnect between actual store hours and what’s on the franchisee’s website or other sites like Yelp, Google, etc. As stores change their hours, they need to make sure it gets reflected everywhere.

RMS recommends that brands support their franchisees with initiatives such as:

• Pilot testing in high-demand markets before wider rollouts
• Updated digital signage and drive-thru menu updates to reflect new hours and offers
• Localized marketing campaigns targeting late-night or early-morning consumers
• Menu innovation, like value bundles or delivery-only items for off-peak hours
• Reduced late-night menus to reduce operational complexity and ease crew workload
• Aligning pricing and operating hour strategies with other RMS tools, such as Price Studio

The Bottom Line: Extend, Refine or Reduce—But Always Use Data

Restaurant brands winning in 2025 are those using data to make smarter operating decisions, from pricing to hours of operation.

By partnering with RMS, you gain a proven strategy to:

• Increase same-store sales
• Align hours with real consumer behavior
• Reduce unnecessary labor costs
• Test, validate and scale strategies with confidence

Ready to Find Out If Your Store Hours Are Costing You Revenue?

Let RMS show you how smarter operating hour strategies can drive profitability, store by store. Schedule a free demo today.