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Insight of the Day: Inside the minds of German On Premise consumers: Path to Purchase revealed

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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