Innovative cocktails, spotting new trends and bartenders with a wealth of knowledge will shape how restaurant operaters do business over the next 12 months.
Technomic’s On-Premise Intelligence Report, developed with Beverage Marketing Corporation, which has examined the trends, trials and opportunities facing the on-premise market.
Adult beverages play a huge part in a restaurant or bar’s ability to attract customers and achieve sales objectives, and the on-premise channel is vital to an alcohol brand’s success.
As consumers become more educated on adult beverages through social media, tastings and additional routes, their demand for quality, variety and authenticity is increasing and flavor preferences are shifting.
Technomic said: “While adult beverage appeal has never been greater, prompting visits and purchases that drive on-premise sales growth remains challenging and competition among restaurants, bars and brands to win drink orders is intensifying.”
This report acts as a guide for on-premise operators and adult beverage brand marketers to better understand consumer attitudes, behaviors and usage.
Some notable trends from the report include:
Slow to grow
Identifying growth brands, categories and subsegments, as well as targeting key consumer groups and occasions, is crucial as alcohol sales growth continues to lag total food and beverage growth in the channel.
With cocktail innovation accelerating, margaritas face some stiff competition for drink menu space from restaurant originals and unique specialty drinks.
Challenges remain for wine at the bar, but imports from Italy have traction, with Italian wine varietals among the fastest-growing red wines on menus last year and prosecco also gaining menu placement.
Craft beer stays local
Consumers want variety and are focused on local options, evident in slowed growth of major craft labels on-premise, making beer list optimization even more important.
Properly briefed bartenders
Consumers’ knowledge base of drink selections and quality is rapidly expanding along with their expectations of bartenders’ expertise.