Check value, premiumization rises on-premise

Nearly two-thirds of consumers have increased tip amounts

Many of us are more than ready to bid adieu to 2020. Although experts warn that COVID-19 is not in the rearview mirror yet, with a new vaccine on the horizon and consumers tipping more when dining in, there are some reasons for optimism.

When bars and restaurants were closed for on-premise dining, beer sales were down 33 percent and spirits were down 19 percent, according to Nielsen CGA’s BeverageTrak. Yet, sales data reveals higher check values. For checks with at least one beer, the value went from $43 to $50, while checks with one spirit rose 24 percent to $61 from $49 pre-COVID-19.

Wait staff also are benefiting, as 62 percent of visitors are adding a higher tip than before COVID.

The jump in check value highlight new on-premise consumer trends: maximizing the occasion, trading up/premiumization and the wider “treat” mentality.

For instance, 53 percent of on-premise diners are more likely to treat themselves. Two in five diners (39 percent) are trading up to premium drinks, while 58 percent of 21- to 34-year-olds are trading up, BeverageTrak data suggests.

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Barbara Harfmann, managing editor of Beverage Industry, visits beverage companies for cover stories and facility tours, and writes and edits for the magazine’s print and online components. She also represents the magazine at trade shows and events. She earned a Bachelor of Science in Mass Communications and Public Relations from Illinois State University.