09 Feb Incentivised Sales or Stiff Competition?
Sales incentive schemes are often seen as a way to boost performance and keep staff motivated. After all, restaurants and bars are in the business of selling experiences — food, drinks, and atmosphere — and motivated staff can make a huge difference to both guest satisfaction and business profits.
But before introducing a competitive sales incentive program, consider both the benefits and the potential downsides. When designed well, these schemes can energize teams and lift sales. When handled poorly, they can damage teamwork, create tension, and even harm the guest experience.
Let’s explore both sides of the argument and look at practical steps for making sure such a system works effectively.
What Is a Competitive Sales Incentive Scheme?
A competitive sales incentive scheme rewards employees — individually or as a team — for achieving specific sales goals. This might include:
- Selling a certain number of daily specials or high-margin items (like cocktails or wines by the bottle).
- Reaching personal upsell targets.
- Winning weekly “top seller” competitions.
- Getting bonuses based on overall revenue growth.
These programs usually rely on metrics such as sales per cover, average check value, or overall revenue during a shift. The competition element comes in when staff are pitted against each other, whether formally (e.g., a leaderboard) or informally (e.g., verbal recognition from managers).
Advantages of a Competitive Incentive Scheme
- Increases Sales and Revenue
When staff know they can earn extra income or recognition for selling more, it often encourages them to be more proactive with guests. For example, bar staff might suggest a premium spirit for a gin and tonic, or servers might highlight dessert specials that could easily be skipped otherwise. Even small increases in average spend per customer can add up significantly over time.
- Boosts Motivation and Engagement
In high-turnover environments like hospitality, keeping staff motivated can be a challenge. Employees are more likely to stay alert, enthusiastic, and focused when there’s a clear reward attached to their efforts. Incentive schemes give staff something tangible to aim for beyond their hourly wage or tips. It can also foster a sense of friendly competition, which keeps energy high during slower service periods.
- Encourages Product Knowledge and Upselling Skills
To sell more effectively, staff need to deeply understand the menu — ingredients, preparation, pairing options, and key selling points. A sales scheme pushes team members to learn their products well, especially when rewards depend on recommending high-margin or featured items. Over time, this helps employees develop more persuasive communication skills that benefit both the customer experience and the business.
- Recognizes Top Performers
High-achieving staff often thrive when their extra effort is recognized. Incentives can help celebrate those who go above and beyond, demonstrating that the business values ambition and professionalism. Recognition doesn’t always need to be monetary — even a public acknowledgment during team meetings or a “Best on ground” award can go a long way.
- Drives a Performance-Based Culture
A well-run incentive program creates a clearer link between performance and reward. It can help identify strong performers and potential leaders who consistently meet targets. Over time, this helps build a performance-driven culture rather than one based purely on seniority or tenure.
The Disadvantages and Risks
While the potential upsides are clear, incentive schemes also come with serious considerations. Without balance and careful design, they can cause friction and affect the overall guest experience.
- Can Create Unhealthy Competition
When staff directly compete for financial rewards, teamwork can suffer. Colleagues may become protective of their sales opportunities or less willing to help one another during busy periods. In extreme cases, this can lead to resentment or conflict between staff — not exactly the spirit of hospitality that most want to promote!
- May Encourage Pushy or Inauthentic Selling
The focus on “selling more” can backfire if staff make guests feel pressured or upsold unnecessarily. For example, suggesting a more expensive wine might help an employee’s numbers, but if it comes across as pushy, it damages the guest’s trust and overall experience. In hospitality, genuine service should always outrank transactional selling.
- Potential for Inequity Among Roles
Sales opportunities can vary greatly depending on job position, shifts, and table assignments. A lunch server may not have the same opportunities as a dinner server when it comes to upselling premium dishes or drinks. Similarly, bar staff working on slower nights might not compete fairly with those on weekends. If the program doesn’t account for these differences, it may feel unfair and demotivating to some.
- Short-Term Focus Over Long-Term Service
Staff may concentrate on what drives immediate sales — such as pushing desserts or top-shelf liquor — rather than what creates lasting guest relationships and repeat visits. A constant focus on “what can I sell right now?” can erode the sense of hospitality that encourages customers to return.
- Administrative Complexity
Tracking and evaluating results can take significant management time. Supervisors must ensure sales data are accurate, fair, and transparent. If staff suspect errors or bias in how results are calculated, trust in the program will erode quickly.
Designing a Balanced Incentive Program
If you decide to introduce a sales incentive scheme, the key is balance — motivating staff without undermining teamwork or service quality. Here are a few best practices:
- Blend Individual and Team Rewards
Include both personal achievement and group goals. For instance, you could reward the top individual seller each week while also offering a team-wide bonus for reaching a shared monthly revenue target. This approach keeps competition healthy while reinforcing cooperation.
- Reward Customer Experience, Not Just Sales
Combine sales metrics with guest feedback scores, mystery shopper reports, or positive online reviews. Staff should understand that great service leads to better sales — not the other way around.
- Ensure Transparency and Fairness
Publish clear rules for how incentives are measured, when they’re awarded, and how disputes are handled. Rotating sections or shift schedules can help even out sales opportunities among staff.
- Keep It Fresh
Rotate incentive themes to keep interest alive. One month might focus on cocktails, the next on desserts or new menu items. This prevents fatigue and encourages constant learning.
- Recognize Non-Sales Contributions
Don’t forget other valuable behaviors such as teamwork, punctuality, and mentoring. Recognition programs that include these softer achievements help maintain morale across all types of employees.
The takeaway
A competitive sales incentive scheme can be a powerful tool in the restaurant or bar environment. When done properly, it motivates staff, lifts sales, and sharpens product knowledge — all of which benefit guests and the business alike. However, if handled poorly, it can lead to tension, unfairness, or overzealous selling that damages service quality.
The best programs strike a balance: they reward effort and enthusiasm while keeping hospitality — not competition — at the heart of the experience. The goal should always be to inspire staff to sell not because they have to, but because they want to share great food, drinks, and experiences with their guests.
