Australia’s on premise is at a critical moment of evolution, with frequency of visits on the rise, albeit concentrated around fewer occasions across fewer channels. This provides opportunity to any venue or supplier that is able to tailor its offer to the changing needs of its consumer.
According to the CGA by NIQ’s latest OPUS report, the average monthly visitation rate increased from 5.3 visits to 7.2 visits over the 12 months up to September 2024, with weekly visits increasing 10% over the same period.
“Consumers are becoming more deliberate about their on premise experiences, focusing on quality and value for money,” wrote CGA by NIQ.
“Visits are concentrated around fewer occasions across fewer channels, driven by intent rather than spontaneity.”
Experience-led occasions have continued to increase in popularity as a motivating factor for on premise visitation. As it stands, Events and special occasions now represent the reason to go out for 39% of total visits, up four percentage points on last year.
This was especially true for younger 18-34 year old Australians, with the popularity of occasions such as Bowling venues and Arcade/amusement bars increasing 13 and nine percentage points respectively over the past year. 70% of both Gen Z and Millennial consumers say they prefer different drinks at bars and restaurants to home, compared to 40% of Gen X and 31% of Boomers.
“In line with their quest for experiences, we also note the high proportion of these younger consumers who prefer different drinks at bars/restaurants compared to home,” said Marco Silva, Customer Success Director at NIQ.
“This suggests that On-Premise consumption/visitation plays a more unique and differentiated role in their lives than it does for older consumers, making it less replicable at home and could be one of the reasons why many young consumers are either going out as much as before or even more often despite the higher cost-of-living.”
The latest OPUS report shows that Food-led occasions as a reason to go out dipped four percentage points to 29%. Despite this, 50% of Australian consumers make on premise visits for food-led occasions weekly, compared to 36% for drinks-led occasions.
According to CGA by NIQ, there are “growing overlaps between eating and drinking occasions,” offering opportunity for venues that cater to both, especially in regards to promotion. Currently, the top fators shaping value perceptions are A good deal, Worth its cost, and High quality.
"Promotions play a significant role in attracting new patrons. Meanwhile, overall quality of experience encourages repeat visits."
On-premise consumption of RTDs has continued to increase since the last OPUS report, with 52% of RTD drinkers now consuming RTDs almost every time they go out. This includes a nine percentage point increase in RTD consumption among the 55+ demographic since March.
According to Tom Graham, Senior Manager of Australia and New Zealand at NIQ, “the rise of RTDs in the Australian and New Zealand markets presents a striking opportunity for drinks brands and suppliers to expand their reach in the on-premise sector by providing the familiarity consumers crave.”
One of the categories best positioned for on-premise innovation is that of tap/draught RTDs. Thus far, The tap RTD sector has experienced success in everything from white-spirit RTDs, such as CUB’s Hard Rated; 'value' tap cocktails, such as Vanguard’s recently-extended Cocktails on Tap portfolio; and premium tap cocktails, such as Curatif’s 20 litre kegs.
“It’s clear the key takeaway for industry stakeholders is to focus on innovation in order to meet consumer demand for recognition, taste and convenience,” said Graham.
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