Can you increase revenue by 1-3 million per year, with the help of upselling?

Can you sell for SEK 50 to 55 guests or customers per day? Then you can increase income by 1-3 million per year, with the help of additional sales. | Take part in our training or program.

Upselling is a crucial skill for everyone who works in hotels and restaurants. Improve your company's finances, create memorable guest experiences and demonstrate in-depth product knowledge, then you can make a big difference.

Education or program:

Example 1: One-day training at your place
Example 2: A selling organization. Program that extends over 3 months. We help you implement a sales organization that guarantees that you increase additional sales. Three opportunities on site and access to our digital training.
Example 3: Digital education in ServiceHub

Content of the education or program

  • A selling culture: Method to drive more sales every day that results in a selling culture.
  • Sell for 1 to 3+ million per year: Calculation example based on your business: How do you sell for 1-3 million per year.
  • We are going through: Upselling, different upselling methods, the importance of knowing and understanding your guest, self-confidence is the key, counting examples, word of mouth

Blog post:
Introduction to upselling

It is important to create value for the guest, not just sell more. Focus on understanding guests' needs and how the restaurant's products can satisfy those needs. When it comes to upselling, it's important to have a guest-focused approach.

Create value. Focus on creating value for the guest through the restaurant's products or services. It's not just about selling more, but about offering experiences that actually improve the guest's situation. Example: If a guest chooses a pasta dish, the waiter may suggest a premium ingredient such as truffle to enhance the taste experience.

Understand your guests. Before you can start upselling effectively, you need to understand who your guest is, what their needs and wants are, and how they use your products or services. This requires you to listen actively and ask the right questions.

Personalization. Tailor your suggestions based on the specific guest's needs. Generic or standardized sales pitches are less effective than those tailored to the individual's situation.

Trust. Building a relationship and trust with the guest is crucial in sales and guest service. When the guest trusts you, they are more likely to buy from you and follow your recommendations. Here are some steps and strategies to build trust with your guests

Here are some steps and strategies to build trust with your guests:

  • Actively listen: When interacting with the guest, take the time to listen to their needs, wants and questions. Show that you care about their specific situation and are prepared to adapt your service or product to their needs.
  • Be honest and transparent: Communicate honestly and openly with your guests. If you are not sure about something or if there are limitations in what you offer, tell the guest. Being honest even when it means you can't offer everything the guest wants still builds trust in the long term.
  • Deliver quality: Make sure your products or services are of high quality. The guest will trust you more if they know they can expect consistently good results.
  • Follow up: After a restaurant visit, follow up with the guest to make sure they are satisfied with their experience. It shows that you care about their satisfaction and are ready to help if needed.
  • Share knowledge and tips that can help the guest make informed decisions. It shows that you have their best interests in mind and are not just trying to make a sale.
  • Create a personal connection: Try to build a personal relationship with the guest by remembering their name and previous visits. People feel more comfortable and trust people they recognize and who show that they care about them as individuals.
  • Handle complaints in a professional manner: If a guest has complaints or concerns, take them seriously and deal with them in a professional and empathetic manner. Solving problems effectively can actually strengthen the trust of the guest.

Confidence is the key

The confidence of staff interacting with customers is a fundamental factor for successful upselling.

Here are some points that emphasize the importance of self-confidence:

  • Filing of trust: A person who exudes confidence seems more trustworthy. Guests are more likely to trust recommendations from a person who seems confident in their profession.
  • Knowledge: Knowledge of the products and the ability to discuss them with authority can give the impression that you are an expert in your field. This can convince guests of the value in what you are proposing.
  • Conviction: Confidence in your sales technique can help you communicate with conviction. This is important because enthusiasm and belief in the product often rubs off on the guest.
  • Handling objections: With confidence, you can better handle any objections the guest may have. You can calmly and efficiently meet them and convince the guest that a purchase is in their favor.
  • Adaptability: Confidence allows you to adjust your sales strategy on the spot based on guest reactions and feedback, which can lead to more successful sales.
  • Create relationships: Staff with high confidence tend to be better at building relationships with guests, which is critical to generating repeat business and personal upsells.

To build the self-confidence of the staff, you can, for example:

  • Provide continuous product training.
  • Role-play sales situations to practice handling different scenarios.
  • Provide positive feedback and recognition when upselling is done successfully.
  • Create a supportive work environment where staff feel comfortable taking initiative and being creative in their sales.

Investing in the staff's self-confidence and ability to sell is an investment that can pay off manifold through increased guest satisfaction and sales.

Additional sales increase revenue

Additional sales increase revenue. Calculating exactly how much more money can be made through upselling depends on a variety of factors including the type of restaurant, average prices, what is upselling, and how often the staff is successful at upselling.

Here is an example of how to calculate this:

Goal: One million kroner per year.

  • Number of open days per year: three hundred and sixty-five, or fewer if the restaurant is closed on certain days. We assume that the restaurant is open every day for the sake of convenience.
  • Daily upsell revenue required: One million kroner divided by three hundred and sixty-five days is approximately two thousand seven hundred forty kroner per day.
  • Average income from additional sales per guest: SEK 50.
  • Number of guests per day who need to accept upsells: Two thousand seven hundred and forty kroner divided by fifty kroner per upsell equals approximately fifty-five guests per day.
  • If we assume that thirty percent of guests accept upselling, we need to calculate how many total guests the restaurant must have per day: Fifty-five guests divided by thirty percent is approximately one hundred and eighty guests per day.
  • In order to reach the goal of one million kroner through additional sales per year, the restaurant would need to have approximately one hundred and eighty guests every day, and of these, fifty-five would have to accept an additional sale offer of fifty kroner.

If these assumptions seem unrealistic for the restaurant's capacity or market, the following can be adjusted:

  • Increase average revenue from upselling (by selling more expensive products or bundling more products in the offer).
  • Increase the percentage of guests who accept upsells (through better staff training or more targeted offers).
  • Increase the number of guests per day (through marketing or expanding the restaurant's capacity).

It is important to remember that this is a simplified calculation and actual results may vary depending on a variety of factors. In addition, when conducting upselling, one should always ensure that the customer's experience is the focus and that one does not compromise on the quality of service or products.

Word of mouth

"Word of mouth" is a term used to describe the word-of-mouth spread of information or recommendations from person to person. It is about when people share their experiences, opinions or recommendations about something with their friends, family members, colleagues or other acquaintances. In the case of a restaurant, this means that satisfied guests talk positively about their experience at the restaurant and recommend it to others.

Word of mouth is valuable to a restaurant for several reasons:

  • Credibility: Word of mouth recommendation from an acquaintance is usually considered more credible than traditional marketing.
  • Low costs: Word of mouth marketing is cost effective because it does not require large marketing budgets like other forms of advertising. It is essentially free and can generate significant visitor traffic.
  • Long-term relationships: Positive recommendations can help build long-term relationships with guests. If people have a good experience at your restaurant, they will return and even recommend it to others, which can create a loyal customer base.
  • Increased visibility: Word of mouth can increase the visibility of your restaurant in the community. As more people talk about your restaurant, your exposure increases and can make more people aware of your existence.
  • Positive feedback and opportunities for improvement: By listening to what guests say, you can get valuable feedback and understand what is working well and what can be improved in your restaurant.

In conclusion, word of mouth can be a very powerful marketing strategy for a restaurant because it is based on genuine recommendations and experiences from satisfied customers, and it can help attract new customers and build a strong brand reputation.

Oscar Lindeberg, CEO School of service & ServiceHub App

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