Findings:
The German On-Premise sector experienced a slight increase in consumer outings for drinks in May 2024, with a 3% rise in visitation compared to April.
Gen Z consumers are driving this growth, with 44% going out more often and 38% spending more on eating and drinking out compared to the average consumer.
Key influences on consumer decisions include regular orders, food pairings, social factors like friends' choices, and bartender recommendations.
Key Takeaway:
Gen Z consumers are significantly more active in the On-Premise sector, presenting a major opportunity for brands and operators to capture this demographic’s spending power and influence.
Trend:
There is a growing trend of increased On-Premise activity, particularly among Gen Z, who are visiting venues more frequently and spending more on food and drinks.
Consumer Motivation:
Consumer motivations include routine preferences (regular orders), pairing drinks with food, social influences (friends' choices), and the appeal of bartender recommendations and standout menu items.
What is Driving the Trend:
The trend is driven by Gen Z’s increased social activity and spending in On-Premise venues, along with the effective use of visual and verbal prompts in influencing drink choices.
Who Are the People Referred to:
The report primarily refers to German consumers, with a particular focus on Gen Z (individuals typically aged between 18-24 years), who are more active in the On-Premise sector.
Description of Consumers/Products/Services:
The consumers are mostly Gen Z individuals, frequenting bars, pubs, and restaurants. The services and products discussed are drinks and food offered in these On-Premise venues.
Conclusions:
Gen Z is a crucial demographic for the On-Premise sector, offering significant growth potential for brands and venue operators through targeted engagement strategies.
Implications for Brands:
Brands should focus on aligning their offerings with Gen Z preferences, using effective visual and verbal marketing strategies to influence their choices and build loyalty.
Implications for Society:
The increased social activity of Gen Z may indicate a shift in social dynamics, with more emphasis on social gatherings in physical venues, influencing broader societal trends in consumption and social interaction.
Big Trend Implied:
The big trend implied is the rising influence of Gen Z in the On-Premise market, suggesting that brands and operators who effectively engage this demographic can drive significant growth in the sector.
Key Points on the Path to Purchase:
Influential Factors:
Routine Preferences: 47% of consumers are influenced by their regular orders.
Food Pairings: 36% consider food pairings when choosing drinks.
Social Influences: 20% of consumers are influenced by what their friends are ordering, and 17% by bartender recommendations.
Visual and Verbal Prompts: Physical menus, back bar displays, and recommendations from friends, family, waitstaff, or bartenders are significant in encouraging consumers to try new drinks.
Decision Drivers:
Regularly ordered items and food pairings are the most dominant decision drivers, indicating that familiarity and complementary offerings play key roles in the consumer's path to purchase.
Social cues and recommendations, both visual (menus, displays) and verbal (suggestions from staff or friends), are also critical in swaying consumer choices.
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