Understanding Upselling in Restaurants: Does it Benefit Waiters or Waitresses?

Do waiters or waitresses really benefit when they upsell to customers? The answer is often, yes. Upselling can significantly enhance a server's earnings by increasing tips and the overall bill. In this article, we will explore the concept of upselling, how it impacts servers, and related industry practices.

The Math Behind Upselling and Tips

Let's dive into a real-world example to understand the impact of upselling. Imagine a couple dining in a restaurant. They order two plates of tacos for $14.99 and two margaritas for $8.99, bringing the total bill to $47.96. If they tip 20% on the bill, the server stands to receive about $9.59.

Now, let's consider what happens if the server upsells. The server upgrades the house margaritas to high-end options, such as Casamigos margaritas, adding another $6 each for two, and suggests two dessert options at $5.99 each. This changes the total bill to $71.94. A 20% tip on this new total amounts to $14.39, which is a substantial increase from the previous $9.59.

This simple upsell translates to an additional $4.80 in take-home pay for the server, all by asking an additional question. While upselling doesn't guarantee success every time, it can result in a 15-20% increase in total revenue for both the server and the restaurant.

Promoting Upselling in the Restaurant Industry

The practice of upselling is not a secret in the restaurant industry. It involves the server engaging the customer in a conversation to suggest higher-priced or additional items that the customer may not have considered originally. This can include suggesting a second cocktail, an appetizer, or a dessert.

From the server's perspective, upselling translates to increased tips and potentially higher take-home pay. For the restaurant, upselling drives higher sales and enhances profitability. According to industry insights, restaurants often make more profit from booze sales and extras like appetizers and desserts than from the main meal itself. So, a dessert that the customer takes home is better than no dessert at all.

Strategies for Successful Upselling

While upselling can be beneficial, it's important for servers to adopt a strategic approach. Simply pressuring customers can be counterproductive. Instead, servers should focus on genuine service and the customer's needs. Here are a few strategies:

Initiate conversations: Engage customers in a friendly conversation and ask if they would like to try their favorite drinks in a different form or if they would like to have something to go with their meal. Highlight value: Emphasize the quality and value of the upsell options. For example, if a customer is only ordering a house margarita, explain how the premium option is made with premium tequila and will enhance their dining experience. Consistency: Consistently offering upsells can lead to satisfied customers who feel that they have a unique and personalized experience. This can result in repeat business and positive reviews. Be respectful: Always respect the customer's choice. If they are not interested, respect their decision and suggest alternatives.

Conclusion

In summary, upselling in restaurants can indeed benefit both servers and the restaurant. By increasing the total bill through thoughtful suggestions, servers can secure higher tips. Meanwhile, the restaurant benefits from generating more revenue and keeping customers satisfied. While not every upsell will convert, a well-executed upselling strategy can significantly enhance the overall experience and profitability of a restaurant.