CGA’s exclusive Christmas Report combines consumer and sales data to set out key needs and habits in the crucial period. Nearly three quarters (73%) of consumers said they visited a licensed venue over the 2023 festive season, and the CGA RSM Hospitality Business Tracker showed year-on-year sales growth for managed operators of 8.8% last December. However, with many people’s spending still tight, venues and suppliers will have to work hard to attract them. Here are five of guests’ top priorities for the festive period to focus on.
1 Festive feel
CGA’s latest BrandTrack survey highlights the strong influence of festive elements in pubs, bars and restaurants. More than a quarter (28%) of consumers say special festive food menus would encourage them to visit pubs, bars and restaurants more often, and nearly as many would be positively influenced by festive promotions (23%) and festive décor and ambience (20%). Festive-themed cocktails and drinks (14%) and themed karaoke and other activities (12%) can be effective too.
This highlights an opportunity for drinks suppliers to collaborate closely with operators to support and amplify these festive elements. Suppliers can help create themed festive menus and drinks, contribute to promotions, and even support engaging activities that align with the festive spirit. Assistance with brand activations and appealing décor can further elevate the experience, making venues more attractive to consumers during this critical period.
2 Value
Cost of living concerns are making many consumers cautious with their cash. Among those who spent less than usual last Christmas, 68% said it was because they were watching what they spend, while 53% were trying to save money. However, value does not necessarily mean consumers are looking for something cheap, instead they want something worth the cost that is being paid—which means suppliers and venues will need to meet some high expectations in December.
3 Quality over quantity
The focus on costs has led to a widespread shift towards buying fewer but better drinks in the On Premise, and this trend is likely to continue through December. A third (33%) of consumers said they reduced the number of drinks they bought last Christmas, while only 12% increased them year-on-year. Despite this, 85% said the quality of the drinks they chose had either increased or stayed the same.
This underscores the importance of maintaining high-quality standards to meet consumer expectations. Drinks suppliers have an opportunity to support operators by ensuring high standards. This can include training staff on serving techniques, equipping them with product knowledge, and emphasizing the importance of consistent drink quality. Delivering a premium experience not only enhances the immediate guest experience but also helps secure future purchases and loyalty.
4 Treats
While some consumers are restricting their spending, others are willing to upgrade their drinks as a treat. Nearly half (45%) say they are open to paying more for a better drink experience. This highlights an opportunity for suppliers and operators to offer premium options. It’s important to recognize that the choice to opt for standard serves isn’t always about unwillingness to spend; it can be influenced by how options are presented at the venue.
If premium drinks are not clearly highlighted on menus or visibly promoted as such, consumers may default to standard options simply because they aren’t aware of other choices. Without guidance from bartenders or operators, many may stick to what they know, missing the chance to trade up. Suppliers can support by ensuring that premium options are visible and easily accessible, while training staff to make recommendations that encourage consumers to indulge.
5 Recommendations
Many consumers are interested in different or festive drinks—and they want help to choose them. More than a quarter (26%) of those who tried new drinks last Christmas said bar staff recommendations had been a factor. This highlights the value to suppliers of engaging teams with their brands and earning their advocacy.
Click here for more exclusive consumer insights from CGA by NIQ’s Christmas Report.
The Report delivers comprehensive and best-in-class insights into consumers’ habits over Christmas and New Year, helping On Premise suppliers and operators optimise festive sales and marketing strategies. Solutions including On Premise Measurement (OPM) and On Premise User Survey (OPUS) provide even deeper knowledge of Christmas occasions, channels and categories. To discover more and discuss opportunities for expert bespoke analysis, click here and contact the CGA team.
