Unlock the power of upselling: Increase revenue and enhance customer experience

Restaurants, margins, Operations , 21 August 2024

Unlock the power of upselling: Increase revenue and enhance customer experience

Upselling isn’t just about increasing revenue—it’s about creating a memorable dining experience for your customers and fostering a motivated, engaged team. Here’s how you can build an upsell culture that’s both profitable and enjoyable, with real-world examples of how successful restaurants incentivise their staff to boost performance.

Revenue generation: the immediate impact

The most immediate benefit of upselling is its ability to increase revenue without needing to bring in more customers. Upselling enhances the overall dining experience by encouraging guests to try additional starters, premium cocktails, or main course upgrades. When customers are presented with thoughtful suggestions, they feel more satisfied and valued, which often leads to higher spending and better tips for your staff.

Insights from our restaurant partners and the First Table team reveal that First Table diners present a ripe opportunity for upselling. Our top-performing restaurant partners have mastered the art of upselling with these diners by implementing key strategies such as prompt drink orders, enticing suggestions for entrees and desserts, and strategically seating them in areas that enhance the overall ambiance.

Given that these diners often visit during off-peak times, restaurant staff can dedicate more time to provide personalised service, whether it's recommending specials, suggesting a fine bottle of wine, or enticing them to explore new culinary delights. This approach not only elevates the dining experience but also contributes to increased revenue.

 
Boosting staff engagement and motivation

A well-executed upsell culture can significantly boost staff morale and engagement. When employees see the direct impact of their efforts on the restaurant’s success, it fosters a sense of ownership and pride in their work.

At The Star Entertainment Group in Australia, staff who excel at upselling are rewarded with bonuses, special recognition, and opportunities for additional training. This performance-based incentive system helps maintain a motivated workforce and ensures that upselling is integrated into the overall service culture.

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Enhancing the customer experience

Upselling, when done effectively, enhances the customer experience by providing personalised recommendations that make diners feel cared for and catered to.

Sidart in Auckland, New Zealand, exemplifies this approach. The restaurant is renowned for its innovative cuisine and personalised service. Staff at Sidart are highly knowledgeable and encouraged to create unique dining experiences through menu suggestions and wine pairings, which naturally lead to effective upselling and enhanced customer satisfaction.

Creating a positive and fun environment

The benefits of upselling extend beyond revenue; it also contributes to a positive work environment. When your team is encouraged to be creative and enthusiastic in their approach, the atmosphere of your restaurant can transform. Regularly celebrating upsell successes—whether through shout-outs, awards, or small gifts—keeps morale high and reinforces the importance of each team member's contribution.

The Ritz-Carlton, while primarily known as a luxury hotel brand, also extends its service culture into its restaurants. Staff are empowered to create personalised dining experiences, often suggesting premium options aligned with the guest’s preferences. This approach has helped build a reputation for outstanding service and long-term customer loyalty.

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The bigger picture: long-term success

Incorporating upselling into your restaurant’s culture is about more than just short-term gains. It’s about creating a sustainable strategy that benefits your business over the long term. Regularly reviewing and adjusting your approach ensures that upselling remains fresh and effective. It’s also important to recognise that upselling is not just a tactic but a reflection of your restaurant’s overall commitment to excellence.

The Ledbury in London, a two-Michelin-starred restaurant, exemplifies long-term success through thoughtful upselling strategies. Staff at The Ledbury are trained to offer extensive wine lists and premium dish enhancements, with performance-based rewards that ensure upselling contributes to the restaurant’s reputation for outstanding service.

Conclusion

Upselling offers a wealth of benefits for your restaurant, from increased revenue to a more engaged and motivated team. By fostering a fun and creative upsell culture, supported by strong incentive programmes, you can turn a simple sales technique into a powerful tool for enhancing customer experiences and driving long-term success.