CGA by NIQ frequently conducts Path to Purchase studies, providing valuable insights to suppliers and operators about what drives consumer decision-making in bars and restaurants. Understanding these motivations can translate into increased sales and a deeper grasp of guest behavior.
One of the most common questions we’re asked is: what’s been the biggest shift in consumer behavior since March 2020? In my view, it’s how people choose products. Whether it’s QR codes, limited-time offers (LTOs), bartender recommendations, or researching menus online before even stepping into a venue, a new set of dynamics is shaping how guests engage—and it’s crucial for bar and restaurant owners to realize this impact.
A Consumer who wants to be Influenced
In the U.S. bar and restaurant scene, the consumer has always been king. With a vast selection of options across beer, wine, and spirits, American menus are often larger and more varied than in other Western markets. While this diversity is a strength, it can also create confusion for guests. In uncertain economic times, many consumers hesitate to make a choice for fear of selecting a product they won’t enjoy.
But it’s not just the fear of risk that’s driving hesitation, it’s the overall unpredictability of today’s consumer. In fact, 48% of casual dining guests don’t know which category, let alone which brand, they’ll choose before stepping into a venue. This indecision is even more pronounced in high-energy environments like nightclubs, where the percentage jumps to 66%.
The Power of Online and Social
A common mistake among bar owners is assuming that consumers can only be influenced once they’re already in the venue. Our studies reveal that many savvy operators are reaping the rewards of a strong, user-friendly online presence. Understanding the Path to Purchase means recognizing that consumer decisions often begin long before they step foot in a venue.
For example, 20% of fine dining guests make their drink choice by checking the venue’s online menu beforehand. Additionally, 29% of visitors to high-energy venues report that their choice is influenced by seeing a brand on social media.
These insights underscore the growing importance of having an engaging online presence. From menus that are easy to browse to social media campaigns that spark curiosity, today’s consumers are doing their research well in advance.
Win with Well-Crafted Menus and LTOs
In outlet, as always, is where the real fun begins, and there are a whole variety of ways to manipulate consumers’ drinking habits. What’s particularly interesting is how the leading factors that drive those choices can vary dramatically depending on the sub-channel within the on-premise space.
For instance, in casual dining, the menu itself is the most influential factor, with 46% of guests citing it as their key driver. In sports bars, however, it’s all about happy hours, with 53% of consumers saying they’re swayed by these time-sensitive deals. Meanwhile, in stadiums and arenas, pricing is king, with 50% of patrons choosing their drinks based on the most basic factor—cost.
These insights highlight the importance of tailoring your approach to fit the unique dynamics of each venue type. Whether it’s a well-curated menu, strategic pricing, or compelling promotions, understanding the key motivators in each setting is essential for driving sales.
Bartenders are your Secret Weapon
When it comes to influencing drink choices, one of the most powerful—and often overlooked—factors is the bartender. Bartender advocacy programs remain an essential strategy for success, especially in the spirits category. Having passionate ambassadors on both sides of the bar can significantly boost a brand’s presence and set suppliers up for long-term success.
This is particularly true in premium venues. Bartender and server recommendations are key drivers of choice, with 38% of consumers in premium bars and 29% in fine dining citing these suggestions as a top influence. What’s even more compelling is that for consumers who say they already know what they will drink, 63% state that they can still have their mind changed by a bartender recommendation.
Investing in building strong relationships with bartenders and servers is key. By equipping them with the right knowledge and incentives, operators can turn these key staff members into powerful brand advocates, creating a direct link between their expertise and increased sales.
To Finish…
Navigating the complex Path to Purchase in the on-premise world requires careful consideration of many factors. There’s no one-size-fits-all approach. Differences in time of day, venue type, and customer expectations mean that a flexible strategy is essential—one that addresses every touchpoint in the consumer journey, from pre-visit research to the final order with a bartender or server.
To succeed in this space, operators need to ensure a seamless experience at every stage. This includes an easy-to-navigate online presence, engaging and informative menus, strategically timed LTOs and happy hours, and, of course, enthusiastic, well-trained staff who can effectively guide guests through their choices.
By embracing these key elements, venues can effectively influence purchasing decisions and build lasting relationships with their customers.
Originally published in Bar and Restaurant news
CGA by NIQ On Premise sales measurement and consumer research solutions provide many more insights into the no and low alcohol category in the US, with expert analysis of categories, channels, occasions and much more. To learn more about core services and opportunities for tailored analysis, contact the CGA team.
