In hospitality management, what does 'up-selling' refer to?

In hospitality management, 'up-selling' specifically refers to the practice of encouraging customers to purchase more expensive items or upgrade their orders. This strategy not only enhances the customer experience by introducing them to premium options but also positively impacts revenue for the business. For instance, a server might suggest a more expensive wine that pairs well with the customer's meal or encourage them to add extra toppings to a dish.

By implementing up-selling techniques, restaurants can significantly increase their average order value, thereby improving profit margins and providing a personalized service that can contribute to customer satisfaction. This practice is rooted in the understanding of customer preferences and the ability to communicate the value of higher-priced options effectively.

In contrast, offering discounts involves reducing prices to drive quantity of sales rather than enhancing individual order value. Reducing the number of items on the menu is about streamlining operations or focusing on quality and doesn't directly relate to encouraging higher purchases. Providing free samples can engage customers, but it does not inherently involve persuading them to opt for more expensive items, which is the essence of up-selling.