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US on-premise sales variable heading into holidays

Consumer data from CGA by NIQ shows that on-premise spending has been up and down in certain key US markets.

on-trade drinking
People were generally spending the same amount per on-premise visit, but visits were down

Using BeverageTrak sales data, CGA by NIQ has released a report that found on-premise sales were up 8% in the week ending 11 November, but down 4% in the week ending 18 November.

“In recent weeks, drinks sales performance has fluctuated across the US on-premise,” Matthew Crompton, North American regional director at CGA, said. “Check value remains largely flat, attributing these trends to fluctuations in ticket count. In navigating these shifts, adaptability is paramount for hospitality businesses, operators and suppliers alike.”

Using data from four key US markets – New York, Texas, Florida, and California – CGA found that value velocity had moved 0% from the same period in 2022, with an average of US$76,771. Check value is up 1%, with an average of US$50.95, while ticket count was down 1% with an average of 1,507.

Tracking consumer trends over the past month, CGA found that 28% increased their spending, 52% had spent the same, and 20% had spent less. Meanwhile, 36% of consumers who are spending less are choosing cheaper food options, while 16% of consumers who are spending less are choosing cheaper drink options.

When choosing an occasion to consume alcohol in the past three months, 41% of consumers opted to go out for a drink when catching up with friends, while 35% chose to drink at home or someone else’s house. When celebrating, 30% went out while 23% stayed in. To watch a sporting event, 23% went out while 22% stayed in. And as a treat or reward, 28% went out, while 19% stayed in.

In those key states, 60% of consumers said they would feel lost or disappointed if they were unable to eat or drink at venues, while 40% expressed a similar feeling if they were unable to drink alcohol at home.

CGA first launched these reports during the Covid-19 pandemic as a way to track on-premise traffic and now provides reports year-round.

The Global Bar Report for North America found that although on-trade sales were bouncing back after Covid-19, staff turnover remained an issue.

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