OPUS delivers pivotal exploration into consumer behaviours, preferences, and trends in the On Premise channel, examining how South African consumers engage with bars, restaurants, and other hospitality venues and deep diving into category preferences and occasions.
South Africa’s On Premise remains a vital part of consumers’ lifestyles, despite the challenges posed by the cost-of-living crisis. According to OPUS, a hefty 87% of On Premise consumers in South Africa visit a hospitality venue at least once a month, with half (49%) visiting weekly. Younger consumers with higher disposable incomes are driving this trend, making the On Premise a key market for suppliers looking to reach this valuable demographic.
Within the On Premise universe, casual dining restaurants dominate, with more than half (57%) of consumers visiting these venues in the past three months. Formal dining outlets are also very popular (43%), followed by bars (34%) and pub and hotels (31%) respectively.
Special occasions are highly influential for driving visitation, particularly among female consumers, who over-index by +7pp. Additionally, after work drinks are another common reason for going out, especially among weekly visitors, with a third mentioning it as a key occasion.
The cost-of-living crisis is being felt across South Africa, with consumers (43%) somewhat concerned about its current impact. However, optimism remains, with fewer consumers (39%) expecting the crisis to worsen in the next three months. Despite these economic pressures, South Africans continue to see eating and drinking out as an essential activity. In fact, 59% of consumers strongly or somewhat agree that socialising in On Premise venues is a fundamental part of their lifestyle, a sentiment over-indexing by +15pp among weekly visitors.
Demand for high-quality experiences is growing as consumers return to the On Premise more frequently. Over two thirds of consumers indicate a willingness to pay extra for premium drinks, a trend particularly strong in Cape Town, where consumers are more likely to trade up for better quality (+3pp). This suggests potential to leverage premiumisation strategies appealing to South Africa’s growing thirst for innovative and sophisticated offerings.
CGA by NIQ Client Solutions Manager EMEA, Abhi Sehgal said: “The launch of OPUS in South Africa marks a significant milestone, bringing world class consumer insights to a market that’s dynamic and full of potential. For the first time, key stakeholders in the South African On Premise have access to robust, data-driven insights specific to their consumers. This empowers them to better understand the key drivers behind customer behaviour to make informed decisions. OPUS will be instrumental in helping businesses stay ahead of trends, adapt to evolving consumer demands, and ultimately remain future fit.”
Accessible via a package of core outputs and custom projects, and a proprietary self-serve platform, OPUS is the single source of understanding what consumers are doing in the On Premise and why. To learn more about CGA’s consumer research across South Africa, download more information here, or contact Abhi Sehgal at here.
