What is average order value (AOV)?
Last updated 1 min read
TL;DR
How much a customer spends in one order, on average — also called average spend or average transaction value.
There are only two ways to sell more: more orders, or bigger ones. Average order value measures the second. In restaurants you will also hear average spend per head, which divides by guests instead of orders.
The formula
Average order value = net sales ÷ number of orders
Average spend per head = net sales ÷ number of guests (covers)
A worked example
On Saturday you took £2,640 before VAT across 220 orders.
£2,640 ÷ 220 = £12.00 per order.
If one in five customers added a £3 side, AOV would rise to £12.60 — £132 more on the day without one extra customer.
Why it matters
- Raising AOV is usually cheaper than finding new customers.
- It shows whether upselling, bundles and menu changes are working.
- Compared by channel, it shows where customers spend more — at the till or ordering by QR code.
How to raise it
- Suggest a side, a drink or a dessert — at the till, and on the menu.
- Offer bundles that are better value for the customer and better margin for you.
- Use menu engineering to put high-margin items where people look first.
Common mistakes
- Raising AOV with discounts. A bigger order at a lower margin can earn you less.
- Mixing channels. A delivery order and a takeaway coffee are different businesses; compare like with like.
- Ignoring refunds. Use net sales, after refunds and VAT.
Tracking it in DUMA
The Sales summary report shows gross and net sales, refunds, orders and average order, day by day. Sales by channel sets till, QR code and mobile orders side by side.
Questions and answers
Is AOV the same as average spend per head?
Not quite. AOV divides sales by orders; spend per head divides by guests. A table of four on one bill is one order but four covers.
Should AOV include VAT?
Use net sales — after VAT, discounts and refunds — so it reflects money the business keeps.
Why did my AOV drop when sales went up?
More small orders — morning coffees, say — can grow sales while pulling the average down. Look at orders and AOV together.