As we are entering the fourth quarter of the year, with continued uncertainty regarding the Covid-19 pandemic situation, which is without question impacting the economy and our daily lives, we are faced with no real indication of when the circumstances will improve, domestically and internationally.
According to Thailand's GDP annual growth rate report, Thailand's gross domestic product shrank by 12.2% year-on-year in the second quarter of 2020, following a revised 2.0% contraction in quarter one and compared with market consensus of a 13.3% plunge. The numbers represent the worst economic downturn since 1998, as both demand and supply took a hit from the pandemic crisis. Furthermore, on the production side, the output contracted significantly, especially the hospitality sector, including accommodation, F&B, sports and golf courses contracted by 50.2 %. In the first half of 2020, Thailand's economy shrank by 6.9%, yet forecasted to contract by around 8% at the end of 2020. (http://bit.ly/gdp-bank-of-thailand)
All this being said, there are opportunities in many areas for development and continued winning for those taking a positive, proactive approach. We are all facing a crucial time that requires re-evaluation as to what course of action your businesses will need to take to survive and thrive, especially those in the hospitality sector. Apart from cutting costs, what can you do to push the revenues and sales? Will you consider adding more value to your products and services?
Ultimately the straightforward solution to many operational challenges is to generate incremental revenues through sales, however, this is somewhat easier said than done. The great news is, it is very possible to achieve, the question is 'How to promote sales?'
Businesses like golf courses, restaurants and hotels have great advantages over other business sectors because they are hospitality focused businesses; having the first-hand opportunity to provide excellent services to customers is the biggest advantage. However, connecting excellent services, with genuinely successful upselling practices that generate incremental revenues can be quite a challenge.
At 59club Asia, the hospitality training experts, we believe that both excellent services and genuine upselling make a great combination. We would like to share the two easy techniques in the F&B sector that are proven to stimulate successful upsell at least 70% of the time.
Firstly, service timing is a crucial part of your F&B services, to ensure that guest receive an unrivaled experience, based on individual operating parameters, all geared to driving satisfaction and repeat business. When guests are being seated at their dining table, ensure a staff member immediately presents a food & beverage menu and always subsequently takes the drinks order first, before leaving the table, this creates a welcoming environment, whilst also driving revenues. Why are these steps so important? Because the sooner drinks are being served, the longer time your guests will have to consume those drinks before the first course arrives. This is a precious opportunity; as this offers the opportunity to the staff member to take another beverage order or upsell a bottle of wine to accompany the meal, etc., all precious moments to engage with guests prior to the meal being served, ensuring the delivery of a great hospitality experience. This practice is an upselling through process method that will assure a generation of incremental revenue most of the time. Guests will not feel any pressure from this upselling by your staff. A simple one but missed on countless occasions.
Secondly, you must ensure that your staff are knowledgeable of all menu items in your restaurants. It is essential, as often guests do not know what to order and may need recommendations or advice. If staff are knowledgeable about the menu and ingredients, they can be creative in how they recommend each dish to customers, therefore nothing can stop them from upselling the most profitable dish to customers. Keep in mind that the most expensive item on the menu is not necessarily the most profitable one. Your staff should know exactly what to upsell to generate the highest incremental revenues. If your restaurant is delivering excellent services and your staff are knowledgeable and creative about how they recommend each menu, this will ensure higher revenue generation for your business.
These are two simple techniques, industry proven to be successful and yield positive results more often than not Considering these two techniques do not cost anything, only training, practice and attention from staff members. How often do you think you have lost opportunities to upsell one more cup of coffee, a signature dessert or another glass of wine in a single day, think how much lost revenue this amounts to over a week, month or year? Food for thought….
59club Asia has many more incredible solutions for services and sales improvement that are proven to work and measured through our audit platforms. Learn more about us at www.59clubasia.com or send your enquiry today at firstname.lastname@example.org.