Australians are keener than ever to return On Premise, to reconnect with friends and family and to support their local hospitality businesses, according to a new report from CGA, the global On Premise data and insights consultancy.
This month, CGA launched its monthly On Premise Impact Report, checking in with around 1,000 Australian On Premise visitors to understand their recent behaviour, how they feel about the channel (including any COVID-19 restrictions) and their intentions for visits in the month ahead.
The report is part of CGA’s global expansion program, a host of best-in-class insight solutions being launched in Australia and dedicated to the On Premise channel.
The On Premise insight solutions are specifically designed to provide the foundational insights required to help Australian suppliers grow their On Premise business with more efficiency and less risk. Many of the world’s leading beverage suppliers already use these solutions, and CGA will bring these capabilities to Australian beverage suppliers for the very first time.
This insights ‘toolkit’ includes OPUS (On Premise User Study), a well-established consumer research program that is a nationally representative study of On Premise users - providing robust insights into brand and category consumption, occasions, missions and drinking preferences. OPUS is used around the world by suppliers to better understand their consumer, for brand strategy development, for sales stories and when working with key account customers.
April
CGA will continue their phased solutions launch with Outlet Index in April. Outlet Index is a world leading On Premise outlet database which tracks every licensed venue, name, address and CGA’s proprietary outlet segment in close to 50 countries. Leading beverage suppliers use Outlet Index in many markets to enrich their CRM, to better profile their customers, and to refine their targeting and sales strategy
June
In June, CGA will launch BeverageTrak, a unique sales tracking solution that will allow suppliers to understand how their brands sell in bars and restaurants across Australia by the hour. Understanding the brand-level performance and competitive opportunity by trading period (Happy Hour, Weekend Brunch etc), day of week and for specific events (holidays, sporting events etc) has proven to be game changing in the way North American suppliers build local sales and activation strategies. Now, this advanced sales tracking solution will be available in Australia for the first time.
September
Finally, in September CGA will launch OPM, the world-leading measurement solution for the On Premise channel. OPM (On Premise Measurement) has been established for more than a decade as the ultimate barometer for sales and share performance in the On Premise channel. Used by leading beverage suppliers in the USA, UK, Ireland, and France, this fully projected, statistically robust service will provide the most accurate view of manufacturer and brand share at a total market level (i.e., Total Australia) and at essential market breaks and outlet segments.
In addition to these solutions, this month sees the first Australian On Premise Impact Report, which is an up-to-the-minute monthly study of consumers across the country.
This inaugural report reveals that since the beginning of 2022, 91 per cent of Australians have visited the On Premise for an eating or drinking occasion. When asked about their intentions for the rest of the year, a huge 89 per cent of consumers plan to visit bars, restaurants, and pubs at least the same amount (48 per cent) or more frequently (41 per cent) than they did in 2021.
Most Australians are keen to put COVID-19 behind them, with only 13 per cent visiting the channel less over the last two weeks due to concerns around Omicron cases. The majority (59 per cent) of Australian consumers feel more comfortable visiting the On Premise now compared to 2021 and this confidence is even higher with city dwellers. Sixty-three per cent of consumers in Sydney, 65 per cent in Melbourne and 53 per cent in Brisbane state that they are now more comfortable in visiting venues compared to over the last year.
Not only do the majority of Australians now feel more comfortable in bar and restaurants, but they are actively looking to treat themselves and to enjoy new or premium experiences. Sixty per cent of On Premise visitors say they are likely to pay more for what they perceive as a ‘better quality drink’, while 52 per cent of these consumers would be happy to ‘trade-up’ following a direct recommendation from a bartender or server.
The major enablement to recommendation and brand advocacy however is training. CGA’s custom bartender research, which was conducted earlier this year in Australia, reinforces how important supplier training is for the bartender community. Sixty-one per cent of bartenders surveyed said that following training, they were more confident when making recommendations. Fifty-one per cent also said that training made it ‘more likely for them to make recommendations’ and 1 in 5 bartenders said that training has resulted in menu changes.
Although COVID-19 has impacted the job satisfaction of many hospitality staff, 62 per cent are now feeling optimistic about the future of the industry over the next year. For many reasons, crucial to job satisfaction will be effective training and support – with 90 per cent of bartenders saying they are happy to take part in supplier engagement programmes over the next 12 months.
CGA’s managing director, Americas and Asia Pacific, Scott Elliott said: “It’s clear that the Australian consumer is keen to not only return to normal On Premise behaviour, but many intend to make up for lost time. A significant proportion of Australians are now heading back into the channel with a treat mindset, looking for celebratory and experience-led occasions.
“Now is the time for sophisticated suppliers to really lean-in to help their customers maximise this opportunity. Staff training and advocacy programs, footfall-driving activations, promotional support, technology engagement to help customers navigate a massively changed Path to Purchase - these are all areas in which suppliers can proactively build investment strategies.
“Bartenders and bar owners have told us that the number one factor for listing a brand is the relationship with the supplier or distributor (44 per cent). What we have seen in other On Premise markets that are a little further down the path to full re-opening is that the suppliers who most lean into this channel now gain space, share and customer loyalty once things return to some degree of normality.”
To learn more about CGA’s consumer research and market measurement services across both Australia and New Zealand, please contact Scott Elliott at scott.elliott@cgastrategy.com.