Consumers willing to pay higher tips and food and drink prices amid staffing challenges

CGA’s latest COVID-19 Impact report reveals consumers are more than willing to support their favorite restaurants and bars as they become more aware of the staffing challenges venues face in the On Premise.

The latest data reveals 83% of consumers are visiting the On Premise the same amount or more often than pre-COVID-19. During these visits, consumers are becoming increasingly aware of the staffing challenges the sector currently faces within venues, with 61% noticing this on their most recent visit to bars and restaurants. 

 

In previous CGA research, data highlights that bartenders and waitstaff play a key role in the On Premise occasion, with consumers looking to them for recommendations and quality service. Although 50% of consumers identify staffing shortages in venues as having a negative impact on their experience when out for food and drink, a key message from the report is that consumers are ready to support the sector.   

 

Consumers suggest they are happy to support restaurants and/or bar staff by paying a higher price for food and drinks (31%). Not only this, around half (52%) of consumers are willing to further support bar and restaurant staff by paying a higher tip which is not stated by the venue.  

 

Although these challenges and the resulting impact it’s having with consumer experience are cause for concern for operators and suppliers, there is a positive outlook on future visitation as 7 out of 10 consumers are planning to visit for food-led occasions and 2 out of 5 are planning to visit for drink-led occasions in the next two weeks.  

 

Matthew Crompton, client solutions director, Americas, said “As the On Premise deals with multiple challenges, it’s promising to see that many consumers are willing to support the sector as long as there is clarity and visibility around increased costs. We can now see that 83% of consumers are visiting the On Premise the same amount or more often than pre-COVID-19 and with this number growing, operators need to ensure they can address any challenges as consumers are beginning to notice the impact of staff shortages.” 

 

The COVID-19 On Premise Impact Report is a consumer research report tracking and reflecting on how consumers currently feel about returning to the On Premise, what other states can expect as they reopen fully and how the On Premise can position its offering to encourage more visits.  

 

The latest On Premise Impact Report by CGA, along with other special reports issued over the past several weeks, can be found here

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