On-premise sales velocity increased +3% in the week ending May 7, following a -1% decline in the week ending April 30, according to a report from the market research firm CGA.
The increase was driven by a +2% increase in check value week-over-week, as well as a +1% increase in traffic. Velocity trends continue to follow 2019 on-premise trends.
Nationally, sales velocity increased +18% compared to the same week in 2021, with a +14% increase in check value and +4% increase in ticket count year-over-year, on average. Sales velocity increased +29% year-over-year in the latest 12 week period.
Additionally, two typically on-premise-heavy events boosted the channel during the week: the Cinco de Mayo and Kentucky Derby.
Sales velocity on Cinco de Mayo (Thursday, May 5) increased +19% nationally versus the average Thursday year-to-date. Texas had the highest increase in sales velocity of CGA-tracked states – increasing +30% versus the average Thursday for the state year-to-date – driven by a +24% increase in traffic. California also recorded double-digit growth compared to an average Thursday, driven by a +12% increase in traffic.
The Kentucky Derby (Saturday, May 7) had a large positive impact on the state of Kentucky and the event’s host city, Louisville. Sales velocity increased +16% in Kentucky compared to the average Saturday year-to-date, driven by a +18% increase in check value. Sales velocity in Louisville increased +23% during the event compared to an average Saturday, driven by a +34% increase in check value.
Las Vegas, Miami, and New Orleans each also recorded double-digit velocity increases compared to their days’ averages, due to local events: the Canelo vs. Bivol boxing match, the Formula 1 Miami Grand Prix and the New Orleans Jazz & Heritage Festival, respectively.
All five key states tracked by CGA recorded an increase in sales velocity during the week compared to the same week in 2021, led by New York (+39%), Illinois (+32%) and California (+23%). Texas (+4%) and Florida (+2%) each had single-digit growth. Texas and Florida lifted pandemic-driven restrictions earlier than New York, California and Illinois, which led to stronger sales in 2021.
Texas led week-over-week growth, with a +5% increase in sales velocity compared to the week ending April 30. Illinois (+3%) recorded the next largest week-over-week growth, followed by New York (+2%), California (+2%) and Florida (+1%).