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US bars and restaurants see increase in food spending as drink budgets decrease

The latest snapshot report on consumer spending in the On Premise industry reveals interesting trends and insights that are shaping the current landscape. With a notable split in consumer behavior, it is evident that there are varying factors influencing how individuals choose to spend their money when dining out.

One key finding from the report is that 1 in 4 consumers are visiting bars and restaurants more often than usual, with almost half of them primarily doing so to treat themselves. On the other hand, a larger segment of 3 in 10 consumers are visiting less frequently, citing reasons such as the overall increase in the cost of living and rising food and drink prices in the On Premise. This shift in visitation patterns highlights the impact of economic factors on consumer behavior.

When it comes to spending habits, the report indicates that 1 in 4 consumers are spending more than usual when dining out, driven by the rising cost of food and drinks. Conversely, 1 in 5 consumers are spending less, showing a heightened focus on saving money and being more budget-conscious. This change in spending dynamics compared to the previous year is evident, with more consumers now spending more on food and drinks.

Interestingly, the report also highlights variations in age-specific spending patterns, with Millennials and Gen Z consumers showing different preferences compared to other demographics. While 35–54-year-olds are leading in food spending, younger 21–34-year-olds are the highest spenders on drinks. This insight into generational spending habits can help businesses tailor their offerings to better cater to their target audience.

Overall, the report emphasizes the importance of understanding consumer motivations and constraints in order to strategically plan for success in the On Premise industry. With economic challenges and evolving consumer dynamics, it is crucial for drinks brands, suppliers, and venue teams to adapt their strategies to meet changing consumer needs.

In conclusion, the snapshot report provides valuable insights for industry stakeholders to make informed decisions and adapt their strategies in line with fluctuating consumer behaviors. By staying attuned to current trends and consumer preferences, businesses can better position themselves for success in a competitive market.

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