On Premise Outlets’ Average Check Value is up $5 vs Pre-COVID-19, CGA’s Channel Strategy Study reports

Neighborhood bars and Fine Dining channels are attracting higher spend post-COVID-19, however On Premise visitors are likely to stay local and seek experiences in the next 12 months.

Outlets driving up consumer spend

The study, which delves into 11 different On Premise channels, shows that the average check value has risen across outlets, with the highest increases coming from Fine Dining ($10 vs pre-COVID-19) and Neighborhood bars ($9 vs pre-COVID-19), showcasing opportunities for maximizing revenue in the channel.


Local restaurants leading the return over Casual Dining chains

With restrictions loosening up through various states, and vaccinations continuing to rollout, the dynamic of channel visitation is now moving towards local and neighborhood restaurants. Pre-COVID-19, 70% of consumers were typically visiting the channel, and the most recent research shows that neighborhood restaurants are the #1 channel for On Premise consumers, with 59% of planning to visit in the next 12 months. Casual Dining Chains come in #2 with 52% likely to visit. Consumers’ decisions to support local outlets, and visit their favorite places are key drivers for this behavior.


Neighborhood Bars are the #3 channel consumers expect to visit in the next 12 months, and the #1 drinking channel showing a positive outlook for the summer and beyond, despite having decreased in size (-7.2%) over the year to March 2021.


In addition, the vast majority of consumers who were visiting channels pre-COVID-19 are likely to return in the next 12 months and across all channels, around 4 in 5 expect to visit the same or more frequently than pre-COVID-19.


Positive outlook for experience-led channels

A clear pent-up demand plays a part in the expected frequency of visitation in the future. Channels which have faced more restrictions such as nightclubs and airport bars are top of mind for consumers, with around a 1/3 planning to visit these channels more often than before COVID-19. While those which are more experience led such as stadiums (21%) and casinos (17%) see expected higher frequency of visits by consumers who have missed these experiences.


Golf Courses have gained popularity during COVID-19. 28% of consumers who anticipate visiting Golf Clubs in the next 12 months stated they will be visiting more frequently than pre-COVID-19 – 3rd among all channels, while only 11% said they will be visiting less than pre-COVID-19 – the least of any channel.  Whether it is in the drinks golf cart, or at the country club, opportunities are scattered throughout this channel and offerings of all kinds, from Beer and Hard Seltzers, to other RTD and portable cocktails make this an appealing channel for suppliers.


Discover the opportunities to drive appeal with target audiences 

While the report and individual channel deep dives delve into consumers’ interaction within these 11 different channels, it also highlights who exactly each channel visitor is.


One particular channel that demonstrates this and the diversity of its visitors is Nightclubs. Both African American’s (22%, +12pp vs Avg) & Hispanics (22%, +11pp vs Avg) see increased visitation to this channel specifically, and since 30% of visitors plan to visit this channel more often than pre-COVID-19 (ranked #2), it is important to understand and cater for the needs of the diverse consumer set within each channel.


Commenting on the Channel Strategy Study is CGA’s Managing Director: Americas Scott Elliott said: “Never have we witnessed such a dramatic change to consumer habits as we have in the past 12 months, and beverage suppliers are aware that it is essential to have channel-specific tactics ready to employ if they are going to capitalize on the huge opportunity this market reopening represents.  


We are delighted to repeat the highly regarded On Premise Channel Strategy Study and excited to now have very similar insights available for Canada and Mexico. This report provides unparalleled tracking of the North American consumer and will help guide both operators and suppliers as the On Premise emerges from one of its most trying periods ever.” 


To learn more about CGA’s Channel Strategy report, please contact CGA Client Solutions Director Matthew Crompton Via matthew.crompton@cgastrategy.com

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