That’s among the top takeaways from CGA by NIQ’s latest On Premise User Survey (OPUS), which collected the views of 4,000 users of pubs, bars, restaurants and other premises across Australia. The research delivers up-to-date insights into how consumers engage with different channels, occasions and categories, helping suppliers adjust to guests’ latest demands and generate extra sales.
OPUS shows just over nine in ten (92%) users went out to the On Premise in April. However, the proportion going out to eat slipped slightly month-on -month, from 86% to 85%—and numbers going out to drink fell sharply from 45% to 39%.
With many consumers still concerned about high household costs, On Premise spending has been under severe pressure. CGA’s BeverageTrak service shows venues’ average BevAl sales by value in the first quarter of 2024 were 25% lower than in the same period in 2023. Consumers reported cuts in their average spending on most key occasions, including high-tempo, after-work and relaxed drinks.
Some of these consumers are saving up their spending for special events and occasions like birthdays. These occasions accounted for 39% of all visits to the On Premise in April—a year-on-year increase of 6 percentage points. This gain came at the expense of food-led occasions and drink-led occasions, which lost 4 and 2 percentage points of share respectively.
With so many people focused on getting the best possible experience, channels that are solely focused on food and drink—like casual dining restaurants and bars—have seen a small dip in popularity in the last year. Instead, users are turning to venues with a more diverse offering and a fuller experience, like cinemas and sports clubs.
CGA’s Outlet Index, Australia’s leading database of licensed premises, confirms this trend. While channels including casual and quick-serve restaurants, nightclubs and bars have seen substantial drops in outlet numbers lately, the net decline in venues like cinemas and social, sports or members’ clubs has been much smaller.
James Phillips, APAC Commercial Lead at CGA by NIQ, said: “While Australian consumers remain eager to go out, pressure on their spending means their expectations are very high. It is increasing demand for diverse and all-round experiences in the On Premise that deliver both memorable occasions and good value, and works to the advantage of experience-led and multi-purpose venues in particular. This trend has very significant implications for suppliers, who need to adapt channel strategies and fully understand the changing drinks needs of guests and venues. CGA’s suite of solutions provides the ideal building blocks for smart strategies across this dynamic but fast-evolving On Premise landscape.”
CGA by NIQ’s OPUS provides deep dives into consumers’ engagement with Australia’s On Premise by channel, occasion, category and much more. Outlet Index provides a comprehensive and robust database of all outlets in Australia, helping businesses with brand distribution profiling and targeting and providing sales teams with the intelligence to optimise their time in the field. Click here to learn more.
