Consumers still craving Ireland’s On Premise despite cost of living crisis

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Consumers still craving Ireland’s On Premise despite cost of living crisis

Consumers still craving Ireland’s On Premise despite cost of living crisis
November 06
11:06 2023
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Some of Ireland’s consumers have reduced their On Premise visits because of soaring costs, but most remain eager to eat and drink out whenever they can. ‘Playing to win in the Irish On Premise’ CGA by NIQ’s On Premise Consumer Insights report, reveals that 60% of consumers in Ireland have seen a significant increase in the cost of living over the past year, with three in 10 seeing a severe impact on their finances. With tightened purse strings, consumers are more intent on managing their finances when visiting the channel.

The research reveals consumers will be looking to cut spend by moving down the pricing ladder – two in five plan to search for more value options while visiting the On Premise. Whilst the concept of ‘value for money’ is always adapting, for consumers in Ireland it is very much about something feeling worth the cost, which must be factored into brand activations and serve execution. Emphasising the quality of these offerings and the experience is vital to satisfying consumers, as 40% link value for money to good quality and the majority base their view of quality on taste and experience.

CGA’s sales data shows spending on drinks held up well in 2023, with spikes over the warmer summer months. However, there were dips in months including February, when the aftermath of Christmas reduced people’s discretionary spending. CGA’s Consumer Pulse surveys also showed a slight fall in the frequency of visits last November, as consumers saved up money for festive occasions—a trend that may be repeated this year.

Around a third of consumers visited bars and restaurants at least weekly over the 2022 festive period. Throughout last year, the percentage of consumers decreasing their On Premise spending was higher than those increasing it—though the gap narrowed in December as people splashed out on festive celebrations.

Despite the current economic climate, there is still an opportunity for suppliers and operators to drive consumer spend. The report reveals that eating and drinking out remains a key part of consumers lives (68%), and a proportion of consumers (24%) say they will continue to go out to visit the channel even when short of cash, demonstrating the high value they place on the channel.

Sian Brennan, CGA’s client director, Ireland, said: “Consumer demand for the special experiences provided by pubs, bars and restaurants remains high, and our research points to a likely loosening of spending over Christmas, despite pressure on disposable incomes. But the cost of living crisis has undoubtedly raised people’s expectations, and venues will need to deliver consistently good experiences and value for money to sustain footfall over the crucial festive period.”

The Ireland Consumer Insight Report ‘Playing to win in the Irish On Premise’ offers relevant deep dives and market analysis to inform and develop a consumer led strategy.  It includes the latest leading-edge data, trends and topics in the On Premise channel, enabling brands and operators to optimise marketing and sales strategies. Click here to download more information, or get in touch with Sian Brennan – sian.brennan@nielseniq.com

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