CGA by NIQ latest Channel Strategy Report offers actionable insights to help suppliers address footfall challenges and optimize brand engagement.
The Study reveals habit is a key driver for consumers across all venue types, with a significant portion deciding what to drink even before entering a bar or restaurant. This habitual behavior presents an opportunity to capture consumers’ important ‘first drink’ choices, which often set the tone for the remainder of their visits.
In addition to strategically engaging consumers at the start of their experience, suppliers can also secure long-term loyalty by being part of consumers’ decision-making journeys before they even step inside. Leveraging a range of factors that also influence decision pre-visit is important, including previous positive experiences, and aligning brands with popular dayparts.
In terms of the drinks enticing consumers to part with their dollars, innovation is a major factor for attracting novelty-seeking consumers with unique flavors, signature cocktails, and limited-edition options. Plus, these factors can encourage brand switching, particularly in experience-led and high-tempo venues. This inclination toward experimentation is especially strong among consumers who mix drink categories during a single visit.
At the same time, promotions are a key tool in steering drink choice. Happy hour deals, targeted discounts, and exclusive offers can notably impact category switching, besides locking in a consumer’s first drink choice, setting the tone for the rest of their consumption during the visit. For these reasons, it’s essential promotions are well-communicated to maximize impact, through digital channels, menus, and staff recommendations.
The influence of venue staff on consumer drink decisions and emphasizes the difference suppliers can make by empowering venue staff to become brand champions. This is further underlined as consumers prefer ordering directly from bartenders or servers across all venue types, making staff engagement a vital factor in driving brand visibility. Correspondingly, suppliers are encouraged to invest in training programs to turn venue staff into passionate brand advocates.
Staff recommendations are especially key in fine dining restaurants and premium bars, with sizeable potential to engage consumers with premium offerings in environments where staff endorsement carries weight.
Drew Hummel, Director Americas – On Premise, said: “As consumer behavior shifts toward habitual choices and pre-planned decisions, it’s advisable for suppliers to adopt a proactive approach to capture interest early, in turn boosting brand penetration and loyalty by aligning channel strategies with consumer preferences. To achieve these goals, product development and promotions can be effective ways to invite consumers to step outside their usual comfort zones. These are particularly powerful methods when supported by knowledgeable venue staff acting as frontline marketers and guiding consumer choices. Providing them with tools and training on brand story, quality, and the ‘perfect serve’ equips them to proactively recommend targeted products.”
Drew Hummel, Director Americas – On Premise, said: “As consumer behavior shifts toward habitual choices and pre-planned decisions, it’s advisable for suppliers to adopt a proactive approach to capture interest early, in turn boosting brand penetration and loyalty by aligning channel strategies with consumer preferences. To achieve these goals, product development and promotions can be effective ways to invite consumers to step outside their usual comfort zones. These are particularly powerful methods when supported by knowledgeable venue staff acting as frontline marketers and guiding consumer choices. Providing them with tools and training on brand story, quality, and the ‘perfect serve’ equips them to proactively recommend targeted products.”
CGA by NIQ’s Channel Strategy Report 2024 offers a comprehensive overview of US On Premise channels. It uncovers profiles of interest, information around consumer visitation, and their consumption behaviors within the channels, which are integral for informing successful On Premise strategies. To dive deeper with channel specific reports, download more information here or contact CGA’s experts here.
