Maximizing Restaurants' Revenue through Upselling and Cross-selling
This article will provide tips on increasing revenue through upselling and cross-selling, including menu engineering and suggestive selling techniques. We will also showcase how the Places App can help monitor sales data and identify opportunities for upselling and cross-selling.
Photo: Thomas Tucker
What are upselling and cross-selling?
Upselling and cross-selling are two techniques that can enhance customer experience and boost restaurant profits without requiring additional expenses. These approaches prompt customers to purchase more by utilizing suggestion and psychology, each requiring a distinct strategy.
By upselling, restaurants can persuade customers to buy higher-priced or premium items. This can be achieved by recommending an add-on, an upgrade, or a more expensive item that complements the customer's initial order. Upselling can improve the dining experience by allowing customers to try something new or indulgent.
Cross-selling, on the other hand, is a technique that encourages customers to purchase complementary items or services in addition to their original order. For example, suggest a dessert or a wine pairing with a dish after a meal. Cross-selling can increase the average purchase value while providing customers with a complete dining experience.
Both upselling and cross-selling can be powerful tools for UK restaurants in building customer loyalty and increasing profitability. By training staff to suggest add-ons or complementary items, UK restaurants can improve the customer experience while also increasing revenue.
Menu engineering is the process of analyzing a restaurant's menu to increase profitability and improve customer satisfaction. The goal of menu engineering is to strategically design the menu to encourage customers to order popular and profitable items for the restaurant.
Photo: Priscilla Du Preez
The process of menu engineering typically involves four steps:
This involves reviewing the menu to identify the popularity and profitability of each item. This can be done by tracking sales data and calculating each item's food cost and profit margin.
This step involves making changes to the menu based on the analysis. This can include adjusting prices, adding or removing items, and highlighting popular and profitable items.
This step involves designing the layout and presentation of the menu to make it visually appealing and easy to read. This can include using high-quality photos, highlighting specials, and grouping items by category.
This step involves testing the new menu to see how customers respond. This can be done by tracking sales data and getting feedback from customers.
Using menu engineering techniques, restaurants can increase profitability by promoting high-profit items and reducing waste. Additionally, a well-designed menu can improve customer satisfaction by making it easier for customers to find items they enjoy and creating an overall dining experience.
What is Suggestive selling?
Suggestive selling is a technique used in sales and marketing to increase the average purchase value of a customer by encouraging them to buy additional or complementary products or services. Suggestive selling aims to offer customers options they may not have considered or to upgrade their purchase to a higher-priced item.
Photo: Brooke Cagle
Here are some suggestive selling techniques:
Recommending complementary products. You can suggest other complementary items when a customer considers a particular item. For example, you can suggest a pastry if a customer buys coffee.
Bundling is a technique of offering a group of food or drink items at a discounted price. For instance, if a customer is considering ordering a pizza, you can suggest a bundle that includes the pizza, garlic bread, and a soda.
Limited-time offers are also effective in the food and drink industry, as they create a sense of urgency and encourage customers to purchase. Happy hours, where discounts are offered on selected food and drink items during specific times of the day or week, such as a half-price discount on appetizers between 4 PM to 6 PM on weekdays. This can encourage customers to visit your establishment during these specific hours, increasing sales during typically slower times. Additionally, limited-time offers for seasonal or holiday-themed menu items, such as a special pumpkin-spiced latte during Halloween, can create a sense of urgency and excitement for customers to try these unique offerings before they disappear.
Personalized recommendations are also essential in the food and drink industry, and you can use customer data (which you can analyze with Places App) to make personalized recommendations. For example, if a customer has previously ordered a vegetarian pizza, you can suggest related products such as a veggie burger or a salad.
Remember to use suggestive selling techniques in a friendly and helpful manner. Always consider the customer's needs and preferences and make suggestions accordingly.
How can Places App help?
Places App is an innovative platform that offers its users an opportunity to explore and order from a diverse range of nearby restaurants and cafes. Users can save time and money on their orders with exclusive access to promotions and discounts only available on the app.
In addition to offering its users exclusive deals, Places App saves time by enabling them to order food online for pick-up or dine-in and avoid long queues or waiting on the phone. Users can quickly and easily browse menus, place orders, and make payments directly through the app, streamlining the ordering process.
Furthermore, Places App provides real-time order tracking. Additionally, users can rate and review restaurants and cafes, helping other customers make informed choices about where to order from.
For restaurants and cafes, Places App is an excellent platform to expand their customer base and promote their business. By offering unique promotions and discounts, these establishments can attract new customers and retain existing ones, encouraging them to order more frequently. Additionally, Places App provides restaurants and cafes with various tools to manage orders and track performance, making optimising their operations and increasing their profitability easier.
If you haven't done so already, sign up for a free demo of Places App for your restaurant and experience the benefits of this powerful platform firsthand.
Head of Marketing