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CGA’s unrivalled range of research sources combine volumetric data and consumer insights to explore the state of the On Premise nation and the trends for businesses to know. Here are just five of the latest takeaways.
1 Spending under pressure but conditions improving
High inflation has hit the confidence of French consumers in recent years. More than three quarters (77%) told NielsenIQ’s Homescan survey they are worried about price rises, and some of them have cut their eating and drinking out. On Premise sales have fallen this year as a result—but with inflation now easing, spending power should start to increase.
2 Prices rising
Inflation has forced suppliers and venues to push up the cost of drinks. CGA’s On Premise Measurement solution has indicated an average year-on-year increase of 3.8%, with the soft drinks category rising even faster at 5.9%. However, average beer prices have risen much slower at 0.2%, and after post-COVID increases, there are signs that pricing is now stabilising.
3 A desire for quality over quantity
CGA’s On Premise User Survey (OPUS) shows rising menu prices have led many guests to choose fewer but better drinks when they go out. Asked about their plans with a fixed amount of money, three quarters (76%) said they would choose one or two high quality drinks—far more than the number (24%) who would opt for three, four or five lower priced ones. This highlights the need for suppliers and venues to craft ranges that meet desire for quality while also delivering value for money.
4 Outlet numbers in growth
CGA by NielsenIQ’s Outlet Index indicates some positive trends in venue numbers. Total outlets increased by 2.6% in 2023, with bars achieving 13.5% growth as operators seek a more flexible and hybrid offer. Nevertheless, restaurants remain France’s largest segment, attracting 66.7% of all On Premise drinks volumes. By making smart use of Outlet Index data, suppliers can refine their targeting strategies and identify the right venues for the right brands.
5 Paris losing most share, southern regions stronger
CGA’s breakdown of OPM data shows how some regions of France are performing better than others. Paris has lost the greatest share of sales by value, but trends have been more positive in regions including the alps area and South West, which have both gained more than 0.3 percentage points of share in the last year.
