Cost of living crisis set to change Canada’s consumer behaviors in On-Premise channel


Cost of living crisis set to change Canada’s consumer behaviors in On-Premise channel

How Canadian consumers plan to dine out in 2023

The On-Premise channel (which includes bars and restaurants) is a core part of consumers’ lives for many reasons—it’s where we go to socialize, unwind, and reward ourselves. Fifty-two percent of consumers agree that eating and drinking out is an essential or important activity in their lives.  

The channel also offers plentiful opportunities for drinks brands and operators.     

With noticeable inflation spikes during 2022 and subsequent cost-of-living increases, it’s important to understand the effects on consumer behavior and visitation to the On-Premise channel in the future.   

Two thirds (65%) of On-Premise visitors agree eating and drinking is a treat they most look forward to, while almost half (48%) agree it is a fundamental activity. This demonstrates the importance many consumers place on their visits to bars and restaurants and the value of the channel for suppliers and operators alike.   

More importantly, nearly three quarters (72%) of consumers plan to visit the On-Premise for the rest of 2022, while 22% anticipate reducing their visits as a result of rising cost pressures. This is widely positive for the channel. Consumers that continue to dine and drink out (largely younger demographics) are typically active and engaged consumers who expect to receive good value for money.  

However, as a significant portion of the population plan to go out less, it’s important for suppliers to understand how their brands align with certain channels and occasions—especially those that are going to be prioritized—in order to capitalize on the most appropriate and valuable type of consumer.  

How seasonality impacts Canadian’s On-Premise behaviors

CGA’s research also explores how seasonality affects Canadian consumers’ On-Premise visits. Winter 2023 looks promising for On-Premise sales, with almost 8 in 10 active visitors likely to visit full-service restaurants more or as often as a typical fall and winter. However, this behavior will vary regionally by province, as will the occasions driving consumers out to bars and restaurants.   

Driving On-Premise visits in a cost-of-living crisis

There are a variety of marketing paths brands can take to appeal to On-Premise visitors despite cost-of-living challenges—CGA’S new research details key takeaways and actionable insights to help suppliers navigate these market challenges.   

Matthew Crompton, Regional Director, CGA – North America, said: “As the channel battles with another macro-economic crisis, there are many considerations suppliers and operators should have about the nuanced dynamics influencing Canadians and how they will behave in the On-Premise channel. Approaching a crucial trading period for bars and restaurants, having that understanding and knowledge of how consumers plan to behave will be key.”  

A closer look at the On-Premise channel

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