Consumers are turning away from traditional food- and beverage-led outings and favouring venues with a diverse offering, according to CGA by NIQ’s latest On-Premise User Survey (OPUS) report.
The report found that 92 per cent of survey respondents went out in April, but there was a slight month-on-month decrease in those going out to eat – falling from 86 per cent to 85 per cent – and a significant drop in those going out to drink – falling from 45 per cent to 39 per cent.
CGA’s BeverageTrak service confirms this decrease in beverage spending, with a 25 per cent decrease in average beverage alcohol sales for the first quarter of 2024 compared to the same period last year. Consumers reported making cuts in their average spending across most key beverage-led occasions, including high-tempo, after-work, and relaxed drinks occasions.
Some consumers also reported saving for special events and occasions, such as birthdays. Such occasions accounted for 39 per cent of all on-premise visits throughout April, representing a six percentage point year-on-year increase. This came at the expense of food- and drink-led occasions’ share, which fell by four and two percentage points respectively.
Due to consumer preference for experience-led outings, venues solely focused on food and drink, such as casual dining restaurants and bars, have seen a small dip in popularity compared to the same time in 2023. Instead, consumers are choosing to visit venues with a diverse offering, such as cinemas and sports clubs.
CGA’s Outlet Index, a database of licensed Australian premises, reports the same trend. While there has been a significant drop in channels such as casual and quick-serve restaurants, nightclubs and bars, the overall decline in venues such as cinemas and sports or social clubs has been much smaller.
James Phillips, CGA by NIQ Client Solutions Director, ANZ, said that budget-conscious consumers are prioritising memorable outings.
“While Australian consumers remain eager to go out, pressure on their spending means their expectations are very high. It is increasing demand for diverse and all-round experiences in the on-premise that deliver both memorable occasions and good value, and works to the advantage of experience-led and multi-purpose venues in particular.
“This trend has very significant implications for suppliers, who need to adapt channel strategies and fully understand the changing drinks needs of guests and venues. CGA’s suite of solutions provides the ideal building blocks for smart strategies across this dynamic but fast-evolving on-premise landscape.”
