On-premise Alcohol Consumption Trends - US

Food flavors and ingredients, like herbs and vegetables, found more often in the kitchen are also making their way to the bar, creating a breed of culinary cocktails that take the growing cocktail culture to the next step.

Countries covered: United States

Table of contents

What you need to know
Definition
Data sources

Mintel Menu Insights
Consumer survey data
Advertising creative

Abbreviations and terms

Abbreviations
Terms

EXECUTIVE SUMMARY

On-premise sales have taken a hit but are rebounding
Intriguing trends await returning patrons
What’s on the menu
Marketing strategies could use a facelift
An overview of on-premise drinking habits and spending
What patrons are drinking, and would like to drink

INSIGHTS AND OPPORTUNITIES

Key points
Locavore movement crops up on the bar side
Culinary moves from kitchen to cocktails
On-premise targets off-premise
Promoting the drinks menu with technology

Social media
Location based
Handheld devices

INSPIRE INSIGHTS

Inspire Trend: Life Hacking

Figure 1: Alcoholic beverage adventurousness, by age, December 2010

MARKET SIZE AND FORECAST

Key points
Growth but still low totals
On-premise alcohol sales and forecast

Figure 2: U.S. on-premise alcohol sales, at current prices, 2005-15
Figure 3: U.S. on-premise alcohol sales, at inflation-adjusted prices, 2005-15

On-premise alcohol sales by channel

Figure 4: Sales of alcoholic beverages at bars, restaurants and other venues, by beverage, 2005-10
Figure 5: Sales of alcoholic beverages at bars, restaurants and other venues, by channel, 2005-10

Fan chart forecast

Figure 6: U.S. on-premise alcohol sales fanned forecast, at current prices, 2005-15

MARKET DRIVERS

Key points
Economic factors

Figure 7: Adjusted foodservice and drinking place sales, January 2008-February 2011
Figure 8: Unemployment and underemployment rates, January 2007-March 2011
Figure 9: U.S. real disposable personal income growth, January 2007-January 2011

Attitudes and behaviors

Figure 10: NRA Performance Indices, January 2009-February 2011
Figure 11: University of Michigan Consumer Sentiment Index, March 2007-March 2011

Demographics: Young and spirited

Figure 12: Population, by age, 2006-16
Figure 13: Mean spend on alcoholic beverages at bars and restaurants, by age, December 2010
Figure 14: How social networking sites function for the users, by age, January 2010

COMPETITIVE CONTEXT

Drinking at home: cheaper, and now easier to do in style

RESTAURANT AND BAR ANALYSIS

CraftWorks Restaurants & Breweries

The major brands

T.G.I. Friday’s
Independents

Bittercreek Ale House (and adjacent Red Feather Lounge), Boise, Idaho: Local and sustainable
Hopcat, Grand Rapids, Mich.: Promoting Michigan’s brewing industry
The Drawing Room, Chicago: The culinary cocktail

MARKETING STRATEGIES

Television ads

Old Chicago Restaurant
Figure 15: Old Chicago Restaurant television ad, 2010
Figure 16: Old Chicago Restaurant television ad, 2010
Smokey Bones Barbeque & Grill
Figure 17: Smokey Bones Barbeque & Grill television ad, 2010
Carino’s
Figure 18: Carino’s television ad, 2010
P.F. Chang’s
Figure 19: P.F. Chang’s television ad, 2010
T.G.I. Friday’s
Figure 20: T.G.I. Friday's television ad, 2010

Websites

T.G.I. Friday’s
Old Chicago Restaurant

Social media

T.G.I. Friday’s, Terre Haute, Ind.
Old Chicago Restaurant
Smokey Bones Bar & Fire Grill

MENU INSIGHTS ANALYSIS

Key points
Fine dining surges in new menu additions

Figure 21: Alcoholic beverages at restaurant segments, by incidence, Q4 2007-Q4 2010

Drink prices increase, driven by quality offerings

Figure 22: Alcoholic beverages at restaurant segments, by incidence and price, Q4 2007-Q4 2010

Scotch, premium lagers and cocktails taking greater share of the drinks menu

Figure 23: Top 10 alcoholic beverages, by incidence, Q4 2007-Q4 2010

Wines the priciest option

Figure 24: Top 10 alcoholic beverages, by incidence and price, Q4 2007-Q4 2010

Bacardi leads in incidence

Figure 25: Top 10 alcohol brands, by incidence, Q4 2007-Q4 2010

Lime and strawberry the leading flavors, and growing

Figure 26: Top 10 cocktail flavors, by incidence, Q4 2007-Q4 2010

ALCOHOLIC BEVERAGE CONSUMPTION—AN OVERVIEW

Key points
On-premise drinking the exception, not the norm; beer the top choice

Figure 27: Alcoholic beverage ordering frequency, December 2010
Figure 28: Alcoholic beverage ordering frequency, by age, December 2010
Figure 29: Alcoholic beverage consumption, by beverage type, at bars and restaurants, December 2010

Consumption at bars

Figure 30: Alcoholic beverage consumption at bars, by gender, December 2010
Figure 31: Alcoholic beverage consumption at bars, by age, December 2010
Figure 32: Usual alcoholic beverage consumption at bars, by gender, December 2010
Figure 33: Usual alcoholic beverage consumption at bars, by age, December 2010

Consumption at restaurants

Figure 34: Alcoholic beverage consumption at restaurants, by gender, December. 2010
Figure 35: Alcoholic beverage consumption at restaurants, by household income, December. 2010

Alcohol most often consumed

Figure 36: Usual alcoholic beverage consumption at restaurants, by gender, December 2010
Figure 37: Usual alcoholic beverage consumption at restaurants, by household income, December 2010

THE ALCOHOLIC BEVERAGE DECISION-MAKING PROCESS

Key points
Drinkers driven most by favorites

Figure 38: Alcoholic beverage decision-making process, at bars and restaurants, January 2010
Drink decisions at bars
Figure 39: Alcoholic beverage decision-making process at bars, by age, January 2010
Figure 40: Alcoholic beverage decision-making process at bars, by household income, December 2010
Drink decisions at restaurants
Figure 41: Alcoholic beverage decision-making process at restaurants, by age, December 2010
Figure 42: Alcoholic beverage decision-making process at restaurants, by household income, December 2010

AMOUNT SPENT ON ALCOHOLIC BEVERAGES

Key points
More spent at bars, yet spending is down

Figure 43: Alcoholic beverage spend at bars and restaurants, January 2010 and December 2010
Figure 44: Alcoholic beverage spend at bars and restaurants, December 2010

Spending at bars

Figure 45: Alcoholic beverage spend at bars, by gender, December 2010
Figure 46: Alcoholic beverage spend at bars, by age, December 2010

Spending at restaurants

Figure 47: Alcoholic beverage spend at restaurants, by gender, December 2010
Figure 48: Alcoholic beverage spend at restaurants, by age, December 2010

ALCOHOLIC BEVERAGE CONSUMPTION COMPARED TO LAST YEAR

Key points
Just half are spending the same as last year

Figure 49: Alcoholic beverage ordering compared to last year, by gender, December 2010
Figure 50: Alcoholic beverage ordering compared to last year, by household income, December 2010
Rationales for spending less
Figure 51: Rationales for spending less on alcoholic beverages, by gender, December 2010

ATTITUDES TOWARD RESTAURANT AND BAR DRINK OPTIONS

Key points
Room for improvement on restaurant drinks menus

Figure 52: Attitudes toward alcoholic beverage selections at restaurants, December 2010
Figure 53: Attitudes toward alcoholic beverage selections at restaurants, by gender, December 2010
Figure 54: Attitudes toward alcoholic beverage selections at restaurants, by household income, December 2010 70

Bars fare better, apart from wine

Figure 55: Attitudes toward alcoholic beverage selections at bars/nightclubs, December 2010
Figure 56: Attitudes toward alcoholic beverage selections at bars/nightclubs, by age, December 2010
Figure 57: Attitudes toward alcoholic beverage selections at bars/nightclubs, by household income, December 2010

ALCOHOLIC BEVERAGE PREFERENCES AND ADVENTUROUSNESS

Key points
A battle of the “tried and true” and the adventurous palate

Figure 58: Alcoholic beverage adventurousness, December 2010
Figure 59: Alcoholic beverage adventurousness, by gender, December 2010
Figure 60: Alcoholic beverage adventurousness, by age, December 2010

CUSTOM CONSUMER TABLES: LIGHT, MEDIUM, AND HEAVY USERS

The 25-34 demographic

Figure 61: Usage frequency, by age, December 2010

Consumption at bars

Figure 62: Alcoholic beverage consumption at bars, by frequency of use, December 2010

Consumption at restaurants

Figure 63: Alcoholic beverage consumption at restaurants, by frequency of use, December. 2010

Alcohol most often consumed

Bar/Nightclub
Figure 64: Usual alcoholic beverage consumption at bars/nightclubs, by frequency of use, December 2010
Restaurants
Figure 65: Usual alcoholic beverage consumption at restaurants, by frequency of use, December 2010

The alcoholic beverage decision-making process

Bar/Nightclub
Figure 66: Alcoholic beverage decision-making process at bar/nightclubs, by frequency of use, December 2010
Restaurants
Figure 67: Alcoholic beverage decision-making process at restaurants, by frequency of use, December 2010
Amount spent on alcoholic beverages
Bar/Nightclub
Figure 68: Alcoholic beverage spend at bars, by frequency of use, December 2010
Restaurant
Figure 69: Alcoholic beverage spend at restaurants, by frequency of use, December 2010

Alcoholic beverage consumption compared to last year

Figure 70: Alcoholic beverage ordering compared to last year, by frequency of use, December 2010

Attitudes toward restaurant and bar drink options

Bar/Nightclub
Figure 71: Attitudes toward alcoholic beverage selections at bars/nightclubs, by frequency of use, December 2010
Restaurant
Figure 72: Attitudes toward alcoholic beverage selections at restaurants, by frequency of use, December 2010

Alcoholic beverage preferences and adventurousness

Figure 73: Alcoholic beverage adventurousness, by frequency of use, December 2010

APPENDIX—TRADE ASSOCIATIONS
APPENDIX: RESEARCH METHODOLOGY
CONSUMER RESEARCH

Primary Data Analysis

Sampling
Global Market Insite (GMI)

Secondary Data Analysis

Experian Simmons National Consumer Studies

Statistical Forecasting

Statistical modelling
Qualitative insight
The Mintel fan chart
Weather analogy

Related research categories

By sector: General alcohol, Trends

By market: United States (in North America)