Average Order Value (AOV)

In practice

Average order value (AOV) measures how much a typical order is worth. It translates total sales into a single per-transaction figure, making it possible to compare spending behavior across time periods, sales channels, or customer segments without needing to know how many transactions took place. Because it isolates ticket size from order count, AOV separates two very different growth questions: is revenue rising because orders are getting bigger, or because there are simply more of them.

Formula

Revenue ÷ Number of orders = Average Order Value

For a period generating €12,000 in revenue from 400 orders: €12,000 ÷ 400 = €30 average order value.

Example

Two consecutive months with an identical number of orders illustrate what the metric reveals that a revenue total alone cannot. Month 1: €18,000 in revenue from 900 orders gives €18,000 ÷ 900 = €20 average order value. Month 2: €19,800 in revenue from the same 900 orders gives €19,800 ÷ 900 = €22 average order value. Revenue grew by €1,800, yet the order count did not move at all — the entire increase came from guests spending €2 more per order on average, not from additional orders being placed.

How to use it

A rising average order value combined with a flat or falling order count points to fewer, larger orders rather than broader demand, a distinction worth making before crediting a marketing push with driving growth. Reading AOV alongside contribution margin per order tests whether the larger orders are also the more profitable ones, since a bigger ticket does not automatically carry a better margin — a discount-driven upsell can raise AOV while shrinking profit per order. Splitting AOV by channel (dine-in, delivery, pickup) or by daypart (lunch, dinner, late night) usually reveals different patterns that a single blended figure hides, since a strong dinner ticket can mask a weak lunch one.

What affects it

• Menu pricing and portion sizing, including how items are priced relative to each other
• Upselling and cross-selling prompts at the point of order, whether staff-led or on-screen
• Bundles, combos, and meal deals that group multiple items into one line
• Minimum order thresholds set for delivery or free-shipping incentives
• Group size and number of covers included in a single order
• Discounting and promotional pricing, which can lower AOV even as order count rises
• Channel mix, since delivery, pickup, and dine-in orders typically carry different average ticket sizes