Bars and restaurants leading Mexico’s On Premise growth

The latest Mexico On Premise Consumer Pulse from CGA by NielsenIQ, which surveys 1,200 On Premise visitors across the country, highlights that visitation remains fairly consistent and that consumers are opting for restaurants (90%) over bars and cafés when it comes to favorite venue types.

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This month’s research also delves into the hot topics of Signature Cocktails, satisfaction in the On Premise, the After Work drinks occasion and the impact of menu changes on consumer decision making.

 

If you like Pina Coladas… 

Mexico continues to settle into its pre-COVID-19 rhythm, with bars and restaurants up and down the country leading the sector’s growth. A few categories in particular are seeing extremely encouraging key metrics for their On Premise visits. 

 

Over a third of Mexico’s consumers have enjoyed a cocktail in the past three months. Of those consumers, 72% have ordered a signature serve cocktail. Tequila, unsurprisingly, remains Mexico’s signature drink of choice, with 42% of consumers drinking it.  

 

But Beer is the standout On Premise category, with 7 in 10 visitors consuming it. And when it comes to the most popular cocktail, Pina Colada takes the prize, with 3 in 4 cocktail drinkers (77%) having had it within the last three months. 

 

Drinking habits are following suit, as around 9 in 10 signature serve cocktail drinkers partake ‘very often’ or ‘sometimes’, while 1 in 10 consume them ‘always’. 

 

Visitor Satisfaction is key 

For visitor sentiment, Mexican consumers are ‘very satisfied’ or ‘satisfied’ with their visits to bars and restaurants. Quality of service is particularly well-received, with over 9 in 10 consumers (91%) ‘very satisfied’ or ‘satisfied’ in this area.  

 

There is also high satisfaction with wait time for drinks and drink options available (88%). For the time being, it’s safe to say that Mexico’s On Premise consumers are pleased with the levels of service in the sector. This is reflected in visitation levels over the past two weeks, as 17% of On Premise consumers have visited bars and restaurants more than usual, yet still slightly down from last month (-5pp).  

 

Two-thirds state their visitation frequency as being “about the same as usual.” Furthermore, 8 in 10 consumers (82%) currently feel ‘very confident’ or ‘quite confident’ in visiting bars and restaurants, down from 9 in 10 the last issue of the report (-7pp). 

 

After-Work Drinks 

After-work drinks are also playing a big part in the hospitality industry. Over a quarter (27%) of Mexico’s consumers have gone for after-work drinks in the last three months with 4 in 5 consumers (80%) opting for Beer at after-work drinks. Following this is Tequila, with just under half drinking this (49%). 

 

When considering frequency, 48% of consumers who go for after-work drinks say they go at least once a week. Predictably, after-work drinks are most popular on a Friday (88%), while the most popular occasion to visit the On Premise is a catch up with friends, with around 3 in 5 visiting for this purpose (58%). 

 

Refreshing the Menu 

Mexico’s bars and restaurants are also seeing encouraging rewards from changing their menus. More than a third of consumers (36%) have noticed an increase in drinks options available in bars and restaurants in the past three months. 

 

This is perhaps reflected by the fact that 7 in 10 consumers (69%) have visited bars or restaurants for food-led occasions in the past two weeks, compared to half of consumers visiting for drink-led occasions. In fact, among the 10% of consumers noticing a decrease in drink options, most commonly see it in the cocktail category (50%). 

 

In the past three months, almost 4 in 5 consumers (77%) have been out to eat or drink three or more times. Restaurants continue to be the most visited establishment over the same period, with almost 9 in 10 consumers (88%) visiting this type of establishment. Bars and cafés follow this, with around half of consumers visiting each of these venue types, at 51% and 46% respectively. 

 

Looking beyond, future visitation rates for eating out are consistent with last month, with 7 in 10 (69%) planning to do this in the next two weeks. However, just over half of consumers (51%) are planning to drink out over the same period, which is slightly down from June (-5pp). 

 

Matt Crompton CGA

Matthew Crompton, regional director – North America, said: “It’s never been more important to understand consumer sentiment in the Mexican On Premise. What might seem like subtle changes to the consumer experience, such as refreshing menus, can actually have a significant impact on decision making processes. Options such as signature serve cocktails can also be a key opportunity for suppliers and operators to collaborate and drive awareness and revenue, but understanding the nuances of the Mexico On Premise consumer will be essential to this process.

Our first Mexico On Premise User Survey (OPUS) is set to launch shortly, and will provide these key insights that are crucial for understanding this consumer, how they behave in the On Premise and the influences on drink choice.“

 

Download the latest Mexico On Premise Consumer Pulse here.

 

CGA’s powerful research helps On Premise businesses understand the latest trends in consumer behaviour. It provides suppliers with the market intelligence and path-to-purchase intelligence needed to optimize strategies and support conversations with clients. Bespoke analysis, including valuable consumer segmentation research, is available.  

 

To learn more about CGA’s consumer research and market measurement capabilities in Mexico, please contact Matthew Crompton at matthew.crompton@cgastrategy.com.  

 

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