Digital Innovations Redefining On Premise Success in South Korea

As the cost of living and price increases continue to reshape South Korean spending habits, CGA by NIQ’s latest Consumer Pulse report explores why it’s has never been more critical for drinks suppliers, brands, and venue operators to innovate their digital strategy.

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The report reveals significant changes in consumer behavior, with increasing numbers going out less frequently. This is primarily due to the rising cost of living (44%) and price increases in eating and drinking out (38%).  


Despite these challenges, spends per visit have escalated when consumers do choose to venture out. This is also attributed to the higher prices of food (66%) and drinks (44%), rather than a conscious decision to spend more for enjoyment.  


Conversely, a hefty segment of the market is spending less per visit, driven by a desire to watch their spend (55%) and save money (35%). 


These shifts signpost the untapped potential of digital innovations in venues. Notably, over half of the consumers have reported noticing digital advertisements when dining out, with a particular interest in food and meal-based promotions. Likewise, there’s a gigantic opportunity for drink brands to refine their digital advertising strategies to raise visibility, awareness and engagement. 


So, what types of digital advertisements are capturing consumer attention? The results vary, including new drinks (23%), popular brands supplied by the venue (19%), promotional offers (19%), drink recommendations (18%), and popular drink selections or categories (16%). This diversity underlines the need for a multifaceted approach to digital marketing in the On Premise. 


Moreover, the report highlights the benefits of digital ordering systems. 39% of consumers are more likely to order a drink they’ve seen advertised digitally, while a colossal 85% said they prefer ordering through digital devices over traditional methods. When asked why, they mentioned convenience (54%), elimination of queues (46%), quicker service (36%), and the ability to pay the bill without direct interaction (32%) as the main advantages. 


These insights reflect the imperative for drinks brands and suppliers to optimize their digital strategies in the On Premise environment to attract more attention, increase consumer engagement, and encourage new customers to try their offerings.  


As the transformational impact of digital screens and advertisements redefines On Premise success across South Korea, it’s a compelling opportunity for the hospitality industry to combat the current economic challenges. 


Jaepil Sohn, Client Solutions Associate Director said: The power of digital innovation signals fresh opportunities for drinks brands, suppliers, and operators amidst the rising cost of living. Those who leverage these technologies can not only survive but thrive, by creating exciting experiences to draw consumers in and keep them coming back for more. For these purposes, the report serves as a call to action for the industry to harness the potential of digital screens and advertisements to reignite success in the On Premise sector.” 



Download the latest Consumer Pulse Report for free, here 


CGA by NIQ’s latest Consumer Pulse report uses OPUS data to help drink brands identify the most effective channels for digital advertisements and solutions, ensuring their message reaches the right audience with precision. Additionally, the report offers deep insights into the major factors influencing drink choices across important On Premise channels, enabling brands to craft unique sales stories that demonstrate the clear benefits of prioritizing their products to venue operators.  


Various OPUS services are available to help businesses achieve quick gains in category and channel share and improve long-term strategic planning. Bespoke research is also available to explore topics, channels and categories in detail. Click here to contact Jaepil Sohn to discover more.  

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