Average Order Value (AOV)

Average Order Value is simply the average amount of money each customer spends when they order from your restaurant. Think of it as asking: “Typically, how much money do I make each time someone places an order?”

The math is pretty straightforward:

Average Order Value = Total Revenue ÷ Number of Orders

For example, if your restaurant made ₹50,000 yesterday from 100 orders, your AOV would be ₹500 (₹50,000 ÷ 100).

You must read: How Global Restaurants Increase AOV Using Loyalty Programs

Here’s why you should care about this number:

1. Profitability: Higher AOV generally means more profit per order, which helps cover your fixed costs like rent and staff.
2. Marketing Decisions: If you know your AOV is ₹500, spending ₹200 to acquire a new customer makes sense. If your AOV is only ₹250, you might need to rethink that marketing spend.
3. Business Growth: Increasing your AOV by just 10% can significantly boost your profits without needing more customers.

You must also read: How to Keep Costs Low and Profits High

Let’s say you run a South Indian restaurant in Bangalore. Your current AOV is ₹300 per order. You notice that when customers order dosas, they rarely order beverages.

You train your staff to suggest a lassi or filter coffee with every dosa order. After implementing this simple upselling technique, more customers add drinks to their orders, and your AOV increases to ₹350.

That’s a 16% increase in revenue from the same number of customers!

Don’t forget to download your free customer marketing playbook for 2025 

• Create combo meals: Offer a slight discount when items are purchased together
• Strategically place premium items on your menu or food delivery app listing
• Train staff to suggest appetizers, sides, or desserts
• Implement a minimum order value for free delivery
• Offer limited-time specials that add value at a higher price point

Remember, increasing your AOV isn’t about tricking customers into spending more; it’s about enhancing their experience by suggesting items they’ll genuinely enjoy while helping your business grow. It’s a win-win!