The CGA by NIQ US On Premise Impact Report is packed with market-leading analytics to equip drinks suppliers, brands, and distributors with actionable intelligence to transit the alluring but complex area of consumer incentives, assortment decisions, and market positioning.
The study indicates a significant hot spot, with over half of active consumers drawn to On Premise venues by discounted food offers during off-peak hours. Complimentary items and drink specials further sweeten the deal.
This suggests innovative pricing is a strategic catalyst for shelf space optimization with high-profit SKUs, while aligning product assortments with evolving consumer expectations. Yet the consumer-scape moves in mysterious ways. Surge or dynamic pricing is appealing for its potential to offer timely discounts. But it’s met with mixed reactions from consumers.
Restaurant Week provides a clear example of this. Consumers who visited the On Premise at least once during the event were asked about the type/s of venue’s they’d been to. 32% had visited venues with higher price points than they’d usually pay, while 48% had visited venues costing similar, as opposed to just 9% visiting venues with lower prices than those they’d typically visit.
This demonstrates the key to an effective dynamic pricing model is getting the balance right between perceived value and consumer satisfaction. But there’s always exceptions to the rule, and cocktail drinkers are one of the biggest.
Timing is everything for US cocktail drinkers, who anticipate variable pricing based on specific days of the week and dayparts. The data reveals a preference for premium pricing on weekends after 8pm, in contrast with expectations for lower costs during weekday afternoons. This presents a compelling opportunity for drinks brands, suppliers and operators to strategically couple pricing models with consumer traffic patterns, enhancing both profitability and consumer experience.
Overall, the challenge in today’s On Premise goes further than product placement. In addition, it demands in-depth understanding of consumer attitudes, beliefs, and the unconscious drivers of brand interaction and perception. CGA’s consumer solutions identify these dynamics and signal a roadmap for prioritizing impactful incentives across different channels, dayparts, and occasions, driving visitation during quieter periods, optimizing revenue, and strengthening brand loyalty.
Matthew Crompton, Vice President of Account Development, said: “Understanding the tide of consumer preference offers a strategic lever for the hospitality industry. There’s a real opportunity to enhance the On Premise experience while tapping into added potential for profitability and growth by aligning pricing strategies with consumer expectations. The Impact Report is a blueprint for future success for suppliers looking to reap the benefits of dynamic pricing without devaluing their brands and suffering diminished consumer perceptions.”
Matthew Crompton, Vice President of Account Development, said: “Understanding the tide of consumer preference offers a strategic lever for the hospitality industry. There’s a real opportunity to enhance the On Premise experience while tapping into added potential for profitability and growth by aligning pricing strategies with consumer expectations. The Impact Report is a blueprint for future success for suppliers looking to reap the benefits of dynamic pricing without devaluing their brands and suffering diminished consumer perceptions.”
CGA’s On Premise Impact Reports help suppliers and manufacturers across food and beverage keep a pulse on the industry by featuring current insights derived from a variety of our best-in-class data tools. Click here to download more information, or to learn more about subscription access and wider consumer solutions contact Matthew Crompton here.
