Nielsen CGA releases COVID-19 On Premise Impact Report

The latest COVID-19 On Premise Impact Report reveals returning and spend behaviors

With all states now in some degree of ‘open’, we have witnessed the US On Premise market undoing many variations of restrictions in the last two weeks. This is a period of experimentation for many venues – finding ways to serve outdoors, maximizing capacity with social distancing and encouraging more consumers to return. Nielsen CGA has gathered the latest statistics and consumer insights to provide you with the data to support your sales and business approaches during these ever-changing times.

In this issue, we have focused on the key states of Texas, Florida, New York and California. We have again asked reopening questions around their expected behavior, as well as their current spend in the On Premise vs pre-COVID-19 and perceptions of On Premise vs drinking at home drinking.

key findings

Increasing from 30% two weeks ago, 36% have been out to eat in the last two weeks.

While more 21-34 year olds (42%) have been to eat, the older age groups are closing the gap with 35% of 35-54 year olds and 33% of over 55s, illustrating that the more higher risk groups are feeling more confident about returning.

High level of satisfaction with experience is still observed and is increasing – 82% were satisfied with the overall experience in bars/restaurants in the last two weeks (compared to 74% in Issue 7).

In terms of spend in bars and restaurants, positively 70% say they are spending more or the same pre COVID-19

Nonetheless, consumers are still wary of the potential impact of COVID-19…

Despite signs of people returning and spending again, understandably there are still concerns.

89% were somewhat or very concerned with the impact of COVID-19 on the economic stability of the country.

This is followed by concerns with the impact of COVID-19 on health of myself and family’ (79%) and ‘the risk of contracting or spreading COVID-19 when visiting bars/restaurants (79%).

Our recommendations still stand – venues need to do the utmost to reassure consumers feel like it is safe for them to visit; they need to see clear hygiene practices, instructions and upholding of standards. Clearly displaying that you have social distancing could help to make some of these consumers feel safer to return.

We as consumers are social beings, we need to celebrate that the On Premise is a key vehicle for that…

Restaurants and bars are more closely aligned to buying alcohol for socialising (40%) compared to when buying alcohol at stores (13%).

While some may have had little choice but to shop from the Off Premise when shelter in place measures were in place, now that the On Premise is open, along with showcasing safety measures, venues need to showcase how bars/restaurants are the place for experimentation alongside socialising