Upselling can make or break a restaurant. If done well, the practice can lead to higher sales, without any increase in the number of covers done.
As valuable as upselling is, the practice can be tricky. The key to upselling is awakening a desire in your guest, without appearing pushy.
Service staff is absolutely key to upselling, so by adding financial incentives to your servers income is best way to motivate them to upsell.
With all that being said, what is the best way to incentivize employees to incorporate upselling into their best practices?
Let’s talk about the 10% factor.
The financial incentive to upsell.
Sharing the following example with the service staff may help to motivate them. This little trick is called the 10% factor.
Raising a check average by as little as 10 percent can have a remarkable impact on a server’s earnings, and can be as simple as selling one dessert or an extra glass of wine.
Starting with a $60 check for a four-guest table, here’s what an average performance will net a server over the course of one year:
$60 check average x 15% gratuity= $9 tip average
$9 tip avg x 5 tables turned 2x/night = $90 in tips per shift
$90 in tips per shift x 5 shifts per week = $450 in tips per week
$450 in tips per week x 4 weeks per month = $1,800/month in tips
$1,800 per month x 12 months = $21,600/year in tips
Now, consider raising the check average from $60 to $66, and selling with a
confidence that can earn a server an 18% gratuity on average.
$66 check average x 18% gratuity = $11.88 tip average
$11.88 tip avg x 5 tables turned 2x/night = $118.80 in tips per shift
$118.80 in tips per shift x 5 shifts per week = $594 in tips per week
$594 in tips per week x 4 weeks per month = $2,376/month in tips
$2,376 per month x 12 months = $28, 512 per year
By applying the techniques of upselling with confidence and enthusiasm, a server can potentially earn $6,912 or more in additional income.
Upselling benefits your profit margins and staff.
Adding 10% to every ticket not only raises your servers paychecks, it increases your profit margins.
If you’re interested in other ways to help your bottom-line, check out our free e-book where we’ll reveal the pros and cons of buying a POS, give you a list of what features are must-haves, and help you choose a merchant services provider.