What’s a good way to increase profit on every cover in your restaurant? Careful and sensitive up-selling.
Many in the hospitality industry rave about up-selling, but few put a dollar figure to it. Let me see if I can give you an example to help to maximize your profit. Done well, up-selling has a positive impact on your bottom line.
To highlight what I am talking about, look at this example. Let’s imagine that on average, your restaurant serves 75 dinners every night of the week. That makes 525 covers per week. Let’s also imagine that your well-trained employees, your top performers, start up-selling 75% of the time each week. That would translate to about 394 covers each week. Let’s further estimate that these servers are really good and manage to increase the sales on each of these covers by $2.50. That would mean an additional $985.00 in revenue per week, or $51,220.00 in a year! Even if your staff were able to up-sell $1.25 per cover, it would still mean an extra $493.00 a week or $25,610.00 a year for your establishment.
The power of up-selling is so huge, yet few include it in their orientation and employee training sessions. It’s almost as if they don’t need the extra sales!
Benchmark it today, get an average for each guest check or cover, create a simple strategy to start up-selling and measure your average cover again in 4 to 6 weeks: how much has it increased?
It’s a winning strategy all around. Your sales increase for little expense, the customers have an opportunity to have a more complete experience and maybe try something new (I’m thinking of perceived value here!) and servers’ tips increase.
Some tips for up-selling and suggestive selling:
Buy 69 Tips For Better Food & Beverage Profit.
Mike has worked across Canada as a food and beverage professional and currently divides his time between writing and teaching people how to start and run their own businesses.