Ever wonder how much extra profit those tablet upsells actually generate? Sure, your average check goes up, but the real question is margin impact. Most operators see bigger bills but can't pinpoint the actual profitability of their automated suggestions.
What is upselling and why does it increase your margin?
Upselling convinces guests to order more or pricier items. Tablets automatically display suggestions: 'Want fries with that?' or 'Upgrade to premium steak?'. Your average check climbs, but the extra margin depends on what you're pushing.
💡 Example:
Guest orders pasta for €18.50 (€16.97 excl. VAT)
- Food cost pasta: €5.10 (30%)
- Upsell: extra shrimp €4.50 (€4.13 excl. VAT)
- Food cost shrimp: €1.20 (29%)
Total margin jumps from €11.87 to €14.80
Calculate the margin impact of upselling
You calculate upsell margin like regular dishes, but focus on the extra amount. The formula remains identical:
Margin per upsell = Upsell price (excl. VAT) - Food cost upsell item
Here's the difference: upselling rarely adds staff or operational costs. Your chef's already cooking, so nearly all extra revenue becomes profit (minus food cost).
⚠️ Note:
Always calculate with prices excl. VAT. That €4.50 on your tablet includes 9% VAT, so it's €4.13 excl. VAT for calculations.
Different types of upsells and their margins
Not all upsells deliver identical returns. From analyzing actual purchasing data across different restaurant types, here are the most common categories:
- Side dishes (fries, salad): typically 60-80% margin
- Extra ingredients (cheese, bacon): typically 70-85% margin
- Drinks (wine, beer): typically 75-85% margin
- Desserts: typically 65-75% margin
- Upgrades (larger meat portion): typically 40-60% margin
💡 Example calculation per type:
Extra cheese on burger (€2.50 incl. VAT = €2.29 excl. VAT):
- Cheese cost: €0.35
- Margin: €2.29 - €0.35 = €1.94
- Margin %: 85%
Extra fries (€3.50 incl. VAT = €3.21 excl. VAT):
- Fries cost: €0.65
- Margin: €3.21 - €0.65 = €2.56
- Margin %: 80%
Measure the success of your tablet upselling
To gauge if your tablet strategy works, track these metrics:
- Upsell rate: what percentage of guests accepts an upsell?
- Average upsell value: how much extra does someone spend on average?
- Total extra margin per day: number of upsells × margin per upsell
A solid upsell rate sits between 20-40%. Below 20%? Your suggestions aren't appealing enough. Above 40%? That's excellent territory.
💡 Calculation example for a day:
100 guests, 30% accept upsell, average upsell €3.50:
- 30 upsells × €3.21 excl. VAT = €96.30 extra revenue
- 30 upsells × €0.65 food cost = €19.50 costs
- Extra margin: €96.30 - €19.50 = €76.80 per day
Annually: €76.80 × 300 working days = €23,040 extra profit
Optimize your upsell strategy
The strongest upsells share three traits: high margin, low food cost, and guest appeal. Test different options and measure which perform best.
Focus on inventory you already stock. Extra cheese, sauces, or wine glasses cost little but deliver big returns. Skip complex upsells that create kitchen headaches.
⚠️ Note:
Don't overwhelm guests with upsells. They should feel they're getting value, not being pressured.
How do you calculate the margin of tablet upselling?
Collect your upsell data
Note all upsell options on your tablet: price (incl. VAT), food cost per item, and how many you sell per day. Convert prices to excl. VAT by dividing by 1.09.
Calculate margin per upsell item
Subtract the food cost from each upsell price (excl. VAT). This is your margin per item. Also calculate the margin percentage: (margin / price excl. VAT) × 100.
Measure your upsell rate and total impact
Count what percentage of your guests takes an upsell. Multiply number of upsells × margin per item for your daily extra profit. Calculate through to month and year.
✨ Pro tip
Track your top 3 upsells weekly and A/B test their tablet positioning every 14 days. Small changes in suggestion order can boost acceptance rates by 15-25%.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Which upsells have the highest margin?
Small additions like extra cheese (85% margin), sauces (80% margin) and drinks (75-85% margin) deliver the most. They cost little but guests happily pay for them.
How do I know if my tablet upselling is successful?
Measure your upsell rate (percentage of guests who order something extra). Between 20-40% is solid performance. Also track your average extra revenue per guest and convert this to daily profit.
Should I include VAT in my upsell calculation?
No, always calculate with prices excl. VAT. An upsell of €3.50 on your tablet equals €3.21 excl. VAT (divide by 1.09). Only this method gives you real margin data.
Which upsells should I avoid?
Skip complex upsells requiring extra kitchen work or expensive ingredients. Focus on items already in stock that need minimal prep time.
Can I track my upsell numbers automatically?
Yes, tools like KitchenNmbrs let you record food costs for upsell items and automatically calculate margins. This eliminates manual calculations entirely.
How do I optimize upsell timing on tablets?
Display upsells after guests select their main course but before final checkout. This timing feels natural and doesn't interrupt their ordering flow.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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