Summary:
The US On Premise Consumer Impact Report for June 2024 by CGA by NIQ reveals a nuanced shift in consumer spending behavior in bars, restaurants, and other venues. While some consumers are visiting and spending more due to a desire to treat themselves, others are visiting less due to rising costs and changing priorities. Food spending has increased notably, while drink spending has remained more stable. Millennials and Gen Z are bucking the trend, with younger consumers spending more on drinks and older consumers spending more on food.
Key Takeaway:
Consumer behavior in the On Premise industry is evolving due to economic pressures and changing priorities. Businesses need to adapt to these changes to remain successful.
Trend:
The main trend is a split in consumer behavior, with some spending more and others spending less. There's also a notable increase in food spending and a shift in spending patterns between different age groups.
Consumer Motivation:
Consumers are motivated by a desire to treat themselves, but are also constrained by rising costs and changing financial priorities.
Driving Trend:
The rising cost of living, increased food and drink prices, and reduced disposable income are the main factors driving the observed trends.
Target Consumers:
The report refers to American consumers across different age groups, with specific insights into the spending patterns of Millennials, Gen Z, and 35–54-year-olds.
Product/Service:
The report focuses on food and drinks consumed in bars, restaurants, and other On Premise venues.
Age of Consumers:
The report mentions specific age groups: 21–34-year-olds (Millennials and Gen Z), 35–54-year-olds, and a general consumer base of various ages.
Conclusions:
The On Premise industry needs to adapt to the changing consumer landscape by focusing on value, experiences, and understanding the motivations and constraints of different consumer segments.
Implications for Brands:
Brands need to focus on providing value and memorable experiences to attract and retain customers in the current economic climate. They should also tailor their offerings to different age groups, considering the varying spending patterns.
Implications for Society:
The trends reflect the broader economic pressures facing consumers. Businesses adapting to these changes can contribute to a more resilient and responsive economy.
Big Trend Implied:
The report implies a broader trend of consumers being more mindful and selective in their spending due to economic challenges. This could have wider implications for various industries beyond the On Premise sector.
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