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January, 2009

Building Better Beverage Programs Through On-Premise Consumer Insights Presented By. January, 2009. Session Overview. Building better beverage programs starts with on-premise specific consumer insights. This session will feature the latest on-premise national

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January, 2009

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  1. Building Better Beverage Programs Through On-Premise Consumer InsightsPresented By January, 2009

  2. Session Overview • Building better beverage programs starts with on-premise • specific consumer insights. • This session will feature the latest on-premise national • accounts consumer research fielded exclusively for the • Cheers Beverage Conference. • This year’s session will focus on the hot topics of the • impact of the economy on beverage purchases, pricing • service and drink menu effectiveness. • The session also includes a review of the latest • consumer beverage trends from our Cheers Consumer • Trend Monitor.

  3. Methodology

  4. Methodology • Custom on-premise national chain consumer research conducted by Next Level Research and Nova Marketing. • This study was fielded exclusively for the 2009 Cheers Beverage Conference. • The study was conducted in December, 2008 using the on-line Zoomerang Database • Zoomerang is the leading on-line survey tool with a national data base of over 5 million consumers. • The study provides quantitative information on the on-premise consumer at a 95% confidence level.

  5. Consumer Screens • All consumers were at least 21 • years old • Split 50% male / 50% female • Evenly spread throughout U.S. • Must have Visited an On- • Premise National Chain within • the last 30 days • Must have ordered an • alcoholic beverage at an • On-Premise National Chain • within the past 30 days

  6. National Chain Focus Study includes consumers from all of the top Casual Dining, Fine Dining and Hotel chains.

  7. Consumer Composition Study included 500 past 30-day national chain beverage alcohol consumers providing 95% confidence level.

  8. Drill Down Topic • #1 • The Economy

  9. Full Service Restaurant Spending As a result of the economy, three-quarters of consumers say they are spending less at full-service bars and restaurants. Females cutting back slightly more than males Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  10. Reducing Full-Service Restaurant Spending Most consumers are going out less often and those that still go out are looking to spend less per occasion. Source: NLR/NOVA: Dec 2008 with 380 past 30 day national chain beverage alcohol consumers that are cutting back

  11. Ways To Reduce Spending Per Visit Consumers looking to cut back spending per visit order less expensive entrees, take advantage of special promotions, cut back on side orders and cut back on cocktails. Source: NLR/NOVA: Dec 2008 with 380 past 30 day national chain beverage alcohol consumers that are cutting back

  12. Ways To Increase Consumer Visits • Consumers would respond to traffic driving promotions like • buy one get one meals and ½ priced drinks. Source: NLR/NOVA: Dec 2008 with 380 past 30 day national chain beverage alcohol consumers that are cutting back

  13. Drinking Behavior Changes When asked how their beverage alcohol purchases have changed over the past year, consumers are equally split between ordering the same and ordering less per occasion. More males are ordering the same while more females are ordering less/occasion. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  14. Drill Down Topic • #2 • Pricing

  15. Bar & Restaurant Choice • When deciding which full-service restaurant to visit, food, prices, service, location, atmosphere and alcoholic beverages are the most important factors. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  16. Most Importance Beverage Alcohol Items Consumers rate “Everyday Drink Prices At A Good Value” as the most important beverage program element. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  17. Importance Of Price When Ordering Drinks When ordering beer, wine and spirit drinks in full-service bars or restaurants, price is very important for only 28% of consumers but somewhat important for half the consumers. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  18. Knowing The Exact Pricing In Advance • Most consumers do not know the exact price of beer, wine and cocktails before they place their orders. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  19. Drink Taste Expectations – Spirits • Consumers strongly agree that cocktails made with premium brands taste better than those made with house brands. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  20. Drink Taste Expectations – Wine • Consumers strongly agree that premium branded wines taste better than house wines.  Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  21. Drink Taste Expectations – Beer • Consumers strongly agree crafts and imported beers taste better than mass domestic beers. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  22. Drink Taste Expectations – Summary • Across beer, wine and spirits consumers strongly agree that better brands taste better. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  23. Drink Price Expectations • Across beer, wine and spirits most consumers expect to pay more for premium brands. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  24. How Much More • On average, consumers expect to pay $1.81 more for a premium beer, $2.44 more for a premium wine and $2.80 more for a premium cocktail. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  25. Drill Down Topic • #3 • Service

  26. Key Elements Of Beverage Service • Consumers rank prompt drink delivery, appropriate/clean • glassware, prompt order taking and server greetings as the most important elements of good beverage service. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  27. Speed Of Service Satisfaction Levels • Consumers are generally satisfied with the speed of drink service that they currently experience in national chains. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  28. Speed Of Service Expectations • After placing their order, 73% of consumers expect to receive their drinks 2 – 5 minutes. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  29. Preferred Server / Bartender Greetings • Consumers clearly prefer server / bartender greetings that provide them with more information. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  30. Responsiveness To Suggestive Selling If trade-up brands were suggested, 50% beer, wine and spirit consumers would order them. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  31. Ways Servers Can Enhance The Experience • On an open ended basis, the dining experience could be enhanced if servers were faster, offered more suggestive selling, were more knowledgeable and friendly. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  32. Drill Down Topic • #4 • The Drink • Menu

  33. Beverage Purchase Decision Timing • Nearly 80% of consumers do not know what beer, wine and spirit drink they will order in advance. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  34. Beverage Purchase Influencers • Beverage menus and bartender/server suggestions are the most important order influencers. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  35. Reading Drink Menus • When visiting full-service bars and restaurants, nearly 90% of consumers read the drink menus. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  36. Reading Drink Menus • Females read drink menus more than males and younger consumers read them more than older consumers. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  37. Types Of Drink Menus • Consumers clearly prefer stand alone drink menus over drink listings on food menus, table tents or insert cards. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  38. Number Of Drinks On Drink Menus • On average, consumers want to see 14 beer, 14 wine and 16 cocktail offerings on national chain drink menus. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  39. How To List Beer Menu • Consumers prefer to have beer selection listed by domestics, imports and crafts on national chain menus. Source: NLR/NOVA: Dec 2008 with 374 past 30 day national chain beer consumers

  40. Information On Drink Menus • In addition to the drink name, consumers most want to see drink descriptions on national chain menus. Source: NLR/NOVA: Dec 2008 with 500 past 30 day national chain beverage alcohol consumers

  41. Drink Menu Visual Tests • Five separate drink menu visual tests were conducted as • part of this study. • The menu visuals were presented to consumers in a • random order to prevent any order bias. • Patrick Henry Creative Promotions provided the menu • visuals for this study and consulted on the menu • questions.

  42. Drink Menu Visual Test #1 • Tested the consumer purchase intent of three different • margaritas, presented on the menu in three different • ways: • 1. Functional descriptions • 2. Romance copy descriptions • 3. Romance copy descriptions with price

  43. Menu Visual Test #1A - Functional • Based on functional descriptions, 47% of consumers would order House, 31% Top Shelf and 22% Ultra-Premium. Source: NLR/NOVA: Dec 2008 with 456 past 30 day national chain spirit cocktail consumers

  44. Menu Visual Test #1B - Romance • Adding romance copy, reduces House orders from 47% to 33% increasing trade-up from 53% to 67% Source: NLR/NOVA: Dec 2008 with 456 past 30 day national chain spirit cocktail consumers

  45. Menu Visual Test #1C – Romance & Price • Adding romance copy and price maintains trade-up at 67% with slight trade down from Ultra to Top Shelf. Source: NLR/NOVA: Dec 2008 with 456 past 30 day national chain spirit cocktail consumers

  46. Menu Visual Test #1 – Results Summary • Adding romance drink copy to menus drives significant drink trade-up and the addition of price is trade-up neutral. 53% 67% 67% Source: NLR/NOVA: Dec 2008 with 456 past 30 day national chain spirit cocktail consumers

  47. Drink Menu Visual Test #2 • Tested the consumer purchase intent of three menus • with varying degrees of drink photography: • 1. Six drinks with no photos • 2. Same six drinks with one photo • 3. Same six drinks with a photo for each

  48. Margarita Menu With No Photos

  49. Margarita Menu With One Photo

  50. Margarita Menu With Photo Of Each Drink

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