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6 Proven Ways to Increase Average Order Value for Your Takeaway Business

Introduction:

Reaching more customers online, and spending huge money on Marketing isn’t the only way to bring in more revenue from your takeaway business. Want to know How?

Growing Online Revenue is a Top priority for every takeaway owner nowadays & so for you. And getting more online customers is one way of doing that & when you spend money to generate new customers, you get a high volume of orders.

But what about your profit margins? Is it encouraging?

Definitely not. You may increase your revenue but as long as you are spending money to generate new customers, your costs are also increasing ⬆, which means you remain in the same position  = Zero Growth 📈.

In short, getting new customers is expensive, but if you can encourage your existing customers to buy more 🍽, you can increase your revenue and profit margin at the same time. 

This can be achieved with a proven strategy called Increasing Average Order Value.

Get ready as we navigate through this guide, discovering how AOV can be a game-changer for your restaurant’s growth.

In this blog, we’ll explore:

  • What is Average Order Value?
  • Understanding the significance of Average Order Value (AOV)
  • Why AOV is crucial for restaurant businesses?
  • How AOV calculation can fuel your restaurant’s growth?
  • Proven and effective ways to elevate AOV?

Ready to transform your restaurant’s financial performance? Let’s embark on this flavorful adventure together! 🚀

What is Average Order Value (AOV)?

 

Before we get into the details, let’s understand a term that can change your business – Average Order Value (AOV). Simply put, AOV is the average amount a customer spends per order. It’s the average bill amount per order. If your total revenue is divided by your total number of orders, you’ll get your Average Order Value.

It’s a crucial number that shows how well your business is doing financially.

Why AOV is Important for Your Restaurant?

Think of welcoming new diners to your restaurant – it’s like meeting new friends. Now, imagine your regulars, the ones who already love your food. What if there was a simple way to make them spend a bit more each time they order? That’s where Average Order Value (AOV) comes in, acting like magic to boost your sales and profits at the same time.

Now, let’s dive into the details. As we highlighted in the introduction, increasing the Average Order Value can be a game-changer. Increasing AOV is like growing your income by encouraging your regular customers to spend a little more. And here’s the cool part – you do this without spending any money on advertising. Just picture how great it is for your business when you don’t have to pay for ads.

Let’s make it even clearer by looking at how the increase in AOV can make a big difference in your business revenue. Get ready for some interesting insights!

How AOV Calculation Can Fuel Your Restaurant’s Growth?

Let’s dig into the numbers and see the magic unfold. Imagine your takeaway making £5000 in sales from 270 orders in a month, making your Average Order Value £18. This means, on average, each customer spends £18 when ordering from your takeaway.

Now, picture this: setting a fair goal to boost this order value from £18 to £25 – a modest increase of just £7 per order. It sounds easy, right? Well, this achievable target can have a huge positive impact on both your monthly turnover and overall profit.

So, if the average order value becomes £25 with the same 270 orders per month, your total sales for the month jump to £6750. That’s an extra £1750 in sales each month, adding up to an incredible £21,000 in a year. That’s like a 35% growth in revenue every month! 🔥

Imagine the possibilities when you pay attention to your Average Order Value and put some strategy behind it. It’s like planting a seed that grows into a flourishing garden of success.

Now that you understand the power of AOV and its significant impact on a restaurant’s long-term success, let’s explore a few effective and proven ways successful restaurants increase their AOV and thrive as food businesses. Get ready to discover strategies that can take your restaurant to new heights!

 

6 Proven and Effective ways to increase AOV in Restaurant Business:

1. Bundle Deals: In today’s world, where families share more meals together, your restaurant can thrive by offering attractive bundle deals. Imagine this – a four-course family feast priced at just $20 per person! This not only pulls in customers with a great deal but also boosts your profits. Families looking for value will find this offer hard to say no to, leading to larger orders and increased revenue for your business.

2. Minimum for Free Delivery: Everyone loves the magic words “Free Delivery.” To attract more online orders, think about setting a minimum order amount for this tempting offer. For example, drop delivery charges for orders above $70. Customers, wanting to avoid delivery fees, might be more likely to add more items to their cart, joyfully increasing the overall order value while enjoying the added benefit of free delivery.

3. Upsell with Add-Ons: Learn from major online stores and enhance your sales by suggesting add-ons that complement your customers’ orders. Imagine this – someone orders a piping hot meal, and you suggest adding delightful side dishes or desserts. Even if just one additional item is added, this strategy can effortlessly boost the average order from $20 to a delightful $25.

4. Meal Deals and Set Menus: Unlock the power of bundling by introducing irresistible meal deals. This strategy, tried and true for big food brands like McDonald’s, can elevate your order values, especially if you sell certain dishes in larger quantities. Consider crafting set menus for traditional or high-end restaurants, adding allure in the sweet spot of $30-50 per person.

5. Clever Menu Design: Smartly showcase your higher-value dishes on the menu using eye-catching visuals and mouthwatering descriptions. Train your staff to recommend these dishes during customer interactions. By highlighting popular dishes both offline and online, you encourage customers to opt for these higher-value items, enhancing their overall dining experience.

6. Loyalty Programs and Discounts: Inspire customer loyalty through rewarding programs. Take a page from Bombay Pantry, which offers voucher rewards based on the customer’s average spend after 10 orders. Boost your average order value by offering discounts on orders above a certain amount, motivating customers to spend more to enjoy these discounts. Consider throwing in discount codes for future orders to build loyalty and simultaneously increase your average order value. With these simple strategies, watch your restaurant’s revenue soar as you provide added value for your customers!

 

Apply These Tips and Watch Your Business Grow:

Implement these straightforward tips to tailor a strategy that suits your business. Keep a close watch on your Average Order Value (AOV), make adjustments based on the results, and witness your restaurant’s steady growth. Stick to the successful tactics, and propel your restaurant to new heights in the competitive market.

 

Conclusion:

As we conclude this journey, consider putting these tips into action to not only increase your Average Order Value but also to propel your restaurant toward success. At OrderE, we offer comprehensive online ordering solutions and dedicated support for your brand and marketing. From providing assistance with social media to expert advice on boosting AOV, we’re here to pave the way for your restaurant’s triumph. Embrace these strategies starting today, and savor the delightful taste of substantial growth in your business.

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