Upselling techniques applied effectively can increase a restaurant’s Average Order Value (AOV) and improve profitability. With recent advancements in automation technology, digital ordering solutions, and Artificial Intelligence (AI), operators can capitalize on the benefits of upselling and do it effectively on- and off-premise.

Off-premise channels such as take-out and delivery, curbside pickup, and catering are critical contributors to a restaurant’s revenue stream. According to a Nation’s Restaurant News report, 49% of restaurants say that off-premise business represented a higher proportion of sales in 2023 than in 2019 and expect total off-premise sales to increase in 2024.

How is upselling done effectively without a server or cashier? AI-driven algorithms can calculate personalized suggestions for each individual customer by optimizing historical data and leveraging insights gleaned from the digital ordering solution and integrations. The digital ordering system utilizes the customer’s current order and preferences from past orders to instantly generate tailored and relevant menu recommendations. Data such as weather, time spent looking at a particular item, season, and time of day further improves recommendations.

A personalized and automated upselling strategy empowers operators to increase on-premise and off-premise sales while supporting the needs of digital-first customers. For instance, customers who feel rushed tend to order less food. Digital ordering channels allow customers to evaluate your menu leisurely, carefully consider upgrades without feeling pressured, and build an order that fits their preferences. 

When done correctly, upsells also create a more complete meal for the customer, increasing overall guest satisfaction. A frictionless, fully integrated digital ordering experience featuring tailored recommendations fosters brand loyalty while improving the likelihood that the customer will order from you again. What’s more, reordering is convenient and quick, given that the digital ordering system remembers the customer’s order history. 

The ability to promote seasonal dishes, specials, and limited-time menu offers is yet another advantage of implementing an automated upselling strategy. Highlighting your best sellers helps new customers know what to order while providing loyal guests with a simple way to discover something new. By successfully recommending items that graduate customers to a higher priced beverage or new menu category, check sizes grow, and the customer lifetime value improves. While customer acquisition is an important goal, upselling techniques are 68% more effective for customer retention, according to HubSpot reports.

Upselling customers via mobile, web ordering, or self-service kiosks does not have to be impersonal or generic. Helpful and intuitive upselling boosts the value of each customer order and increases conversion rates without face-to-face interactions. By systematically offering the right recommendation at the right time, it’s easy for the customer to upgrade toppings or add a premium side dish, driving ticket averages upward. A deep dive into customer preferences and order histories allows operators to develop better loyalty benefits, menu offerings, and improve future digital marketing and promotions.

Upselling is a win-win for foodservice operators and their customers. Contact Tacit today to grow your on-premise and off-premise orders, AOV, and customer satisfaction through automated upselling.