This article was initially published in the March issue of Global Drinks Intel magazine. For details on how to subscribe click here.
My love of the on-premise is strong. As is my admiration for those who work in the channel to deliver the experiences that keep us coming back.
If I had my way, though, there are a few things I’d tweak. Here, then, are five suggestions that would make the on-premise an even better consumption location than I believe it already is.
Resist the temptation to cut corners – instead, maintain quality
Faced with mounting energy bills, increasingly demanding [and in-demand] staff looking for higher earnings, rent reviews and inflationary pressures on costs, it’s little surprise to see operators and suppliers alike trade down to cheaper – and, generally, lower-quality – options.
It’s something I’ve noticed myself in recent months, seeing favourite dishes transformed into blander, more tepid versions of their previous selves, or a trusted house wine switching from a very pleasant, full-bodied Rioja to an indiscernible sour-tasting, tart number.
I can understand why. The appeal must be strong to maintain consumer-facing prices while simultaneously maintaining margin – and the only way to do that is to use cheaper ingredients. However, the part of this equation that doesn’t stack up is volume. There’s a huge risk of consumers voting with their feet and choosing to not revisit.
In all our consumer research over the past two years, ‘good value’ has become increasingly important. When we dive into this further, we’ve found that value is not determined by price alone; in fact, a ‘cheap option’ is least likely to resonate with value.
Instead, value is more closely linked than any other metric to quality. Therefore, for operators and suppliers, retaining quality cues with their product offerings is vital to maintain value perceptions. In the long run, the risk is not in turning consumers off by raising prices, but instead by not raising prices, cutting corners and not meeting expectations.
Improve drink-led visits when it comes to safety, accessibility and, ultimately, hospitality
For all that our industry does a great job encouraging socialising and a sense of community, there’s a fair accusation to be levelled, especially at drink-led venues, that they can be boisterous, intimidating, male dominated, even hostile environments.
While much attention is centred around staff training for areas such as ‘perfect serve’, trading-up and the technicalities of operating venues, there is perhaps less focus on ensuring that consumers are made to feel safe and that environments are hospitable. Fostering a sense of community, where consumers feel protected is no easy task. Investing resources into achieving this, though, also makes business sense. Watch takings improve and the drinks flow as outlets become more accessible and less intimidating to all.
Put consumers at the heart of genuine innovation and develop categories accordingly
This one is for the brand owners. One of my personal grievances is the number of copycat brands and products that flood the channel each year, looking to capitalise on the success of new product launches that have captured the imagination of the consumer. Admittedly, some of these tend to improve the burgeoning category through increased availability or, in some rare cases, higher-quality offerings.
However, for the most part, these ‘me-too’ brands diminish the innovation value of a category, providing poor quality imitations and, ultimately, turning consumers off. Not to mention the often-cannibalising impact on existing products provided by poor NPD in the same category.
Instead of jumping on (and subsequently killing off) success stories such as flavoured gin and no- & low-alcohol spirits, my suggestion would be for drinks producers to first take stock of the target consumer they’re not currently attracting and invest in understanding their needs, occasions and drinks choices to develop new propositions that will attract them.
And please, if – and I hope when – Radler beers finally get the breakthrough I’ve been longing for [refreshing, flavoursome, low ABV – what’s not to love?], let’s not kill that too.
Develop sector strategies that reflect the complexity and nuance of the on-premise channel
This one, I will caveat, in that I’ve seen excellent examples of suppliers building detailed and diverse on-premise strategies that take into account the subtle differences, either by market, by sub-channel, by occasion, or even by consumer type.
These cases are few and far between, though. What is more common is a one-size-fits-all approach to on-premise success, which very rarely delivers anything of the sort. Understanding the glorious nuances of the channel, then developing strategies and executing accordingly to the needs of the varying elements sounds daunting and, indeed, this does require greater initial resources and investment.
However, to truly make the most that the on-premise has to offer to all vested interests, it is essential.
Be nice
Not only in business with one another, but also to consumers, to suppliers and to operators. Surely we can manage that?
This article was initially published in the March issue of Global Drinks Intel magazine. For details on how to subscribe click here.
