The report reveals a notable split in in terms of On Premise visits. On one hand, 1 in 4 consumers (27%) are visiting bars and restaurants more often than usual, with almost half (46%) primarily visiting to treat themselves. A larger segment (3 in 10) is visiting less frequently, which 61% attribute to the overall increase in the cost of living and 60% to rising food and drink prices in the On Premise. Additionally, reduced disposable income (53%) and spending priorities elsewhere (32%) are contributing to this trend.
1 in 4 consumers report spending more than usual when dining out over the past month, again driven by the rising cost of food and drinks. Whereas 1 in 5 consumers are spending less, with a heightened focus on saving money and being more budget-conscious.
But there’s a real shift in the dynamics of spending compared to 2023, with almost half of consumers (48%) spending more on food, while more than a third (35%) are spending more on drinks. Although 1 in 4 consumers are now spending less on drinks compared to the previous year. On a typical visit, consumers spend an average of $41.96 on food and $33.15 on drinks. This marks an increase in food spending for over half of consumers, while drink spending has remained stable for over a third.
Furthermore, the report highlights variations in age specific spending patterns, as Millennials and Gen Z buck the trend seen among other demographics. 35–54-year-olds are leading in food spending, averaging $44.46 per visit, while younger 21–34-year-olds are the highest spenders on drinks, averaging $36.33 per visit.
When comparing current spending to a year ago, more than half (54%) of consumers report increased spending on food, while 37% have increased their spending on drinks. Despite this, almost half of consumers (45%) indicate their drink spending has remained the same, reflecting a balanced yet cautious approach to discretionary spending.
The report takes a deep dive into the motivations and constraints of customers, arming drinks brands, suppliers, and venue teams to strategically plan for success. Moreover, it emphasises the importance of adaptability and responsiveness to consumer needs amidst current economic challenges and evolving consumer dynamics.
Matt Crompton, Regional Director – Americas said: ” Consumers are looking for value and memorable experiences as they make their way through the ongoing economic pressures. For these reasons, it’s vital for On Premise industry stakeholders to understand and proactively approach shifts in consumer spending to capture and retain their patronage. Our latest Report provides the insights needed to make well-informed decisions and adapt strategies in line with fluctuating consumer behaviors and priorities.”
Matt Crompton, Regional Director – Americas said:
CGA’s On Premise Impact Reports help suppliers and manufactures across food and beverage keep a pulse on the industry by featuring current insights derived from a variety of CGA’s best-in-class data tools, touching on hot topics including food and drinks spend.
To find out more about BeverageTrak’s capabilities and how they can help your On Premise strategy, get in touch Matthew Crompton, Regional Director – Americas here. Or click here to find out more about US On Premise Impact Reports.
