Over the past 3 months more than 3 in 5 consumers have visited the On Premise three or more times, a +2pp increase from April. Over 4 in 5 have visited restaurants and/or bars for food-led occasions in the past month, compared to over 1 in 3 doing so for a drink-led occasion.
The On Premise is increasingly experiencing pre-pandemic levels of consumer visitation and habits. To compliment the strong recovery of Canada’s market, spending is on the rise. 37% of consumers state they have been spending more in bars and restaurants over the past 3 months. This is more than double the 17% stating they are spending less.
This increase in spending is bolstered by consumer disposable income. The report reveals 3 in 5 consumers state they have the same amount of disposable income than they did in 2021, with similar proportions stating they have more (18%).
In addition to spending more when visiting bars and restaurants, over the past 3 months 1 in 5 consumers have been paying extra for a better-quality drink more often than they did in 2021. This likelihood of trading up for higher-quality drinks when visiting offers suppliers and operators the chance to influence drink choice decisions when in venue and capitalize on pent-up demand and treat spend.
The Impact report also gauged early interest in sports betting among Ontario residents, and how betting on sports can influence their behaviour when visiting bars and restaurants. 24% of Ontario residents who have visited the On Premise in the last month said they have participated in mobile sports betting while in bars and restaurants.
This presents a unique opportunity for outlets to connect with patrons visiting while watching specific sporting events and capitalize on unique behaviour that can bring additional value to outlets. 70% of those who have placed a mobile bet on sports agree that mobile betting would keep them in a venue longer. A similar proportion said they would be likely to order more drinks when watching a game that they have placed a bet on, compared to a game they haven’t.
Looking ahead to the summer months, festival season presents sales opportunities for suppliers to capture consumer spend and engagement outside of bars and restaurant channels. Around a third of consumers are likely to visit an outdoor festival or concert this year, CGA’s research explores.
The most popular types of festival that consumers are likely to visit are food and drink festivals, closely followed by music festivals. A third of those likely to attend festivals predict that they will drink more at these than they would on a visit to bars or restaurants, presenting a profitable target based for brands and activations. Considering the beverage sales mix opportunity at festivals, Beer is by far the leading drink category for festivals, with Ready-to-Drink and Hard Seltzer offerings being popular choices.
The report also explores consumer visit intention for the month ahead. Similar trends are seen for intentions over the next month and food-led channels remain key for the On Premise, with 84% saying they visit for food-led occasion and 38% for a drink-led occasion. The most popular drink-led channel is neighbourhood bars with 1 in 4 saying they have visited this venue type in the past 3 months.
Matthew Crompton, Regional Director – North America, said “The market performance is very stable at the moment which is really positive as it sets a strong foundation for driving further growth throughout the summer months and key On Premise occasions. We see similar trends for intended visitation over the next month and complimenting this is that the majority of consumers are spending the same or more when they visit vs 2021.
The latest research with insights on behaviour allows for effective consumer targeting by driving sales in channels such as festivals and leveraging how sports betting can keep visitors engaged for longer and drive consumption. Aligning this to supplier and operator On Premise strategies will be key to maximizing these sales opportunities”
CGA’s On Premise consumer research is based on a survey from 6-8 May of over 1,100 consumers within Ontario, Alberta, British Columbia and Quebec who have visited On Premise venues in the past 3 months.
To read more highlights from the report, click here. To learn more about CGA’s consumer and transaction-level research capabilities, plus custom analysis to support brand strategies, email matthew.crompton@cgastrategy.com.
