Sales velocity at bars and restaurants across the U.S. has increased +20% compared to last year, according to CGA, the on-premise data arm of NielsenIQ.
“While the festive season saw consumers flock to the on-premise, it’s clear that the channel is continuing to perform strongly as we move further into 2023, with both ticket count and check value up versus last year and pre-pandemic levels (February 2020),” CGA client solutions director for North America Andrew Hummel said in a press release.
In addition to recording +20% growth, on-premise velocity between January 15-28 also outpaced those two weeks in January 2020, just before the COVID-19 pandemic upended the hospitality industry. CGA attributed the increases to “an uptick in visitation levels and check value.”
For the week ending January 28, check value increased +14% nationwide, to $49.67, and ticket count increased +6%, to 1,595 on average.
Of the five key states CGA tracks, New York (+45%) and Illinois (+28%) recorded the highest growth in the period. Sales velocity in California increased +24% year-over-year, followed by Texas (+8%) and Florida (+7%).
Compared to the week ending January 21, California and Texas (both +5%) tied for highest growth, followed by Florida (+4%). New York’s week-over-week growth was flat.
In Illinois, week-over-week growth declined by -4, which CGA attributed to “recent cold weather and snowfall to the north of the state.” Harsh winter weather caused a -16% decline in velocity on January 28, compared to the prior Saturday, CGA said.
More than two-thirds (68%) of survey respondents told CGA they have been out to eat in the last two weeks of January, which marked a +1% increase over December. Forty percent of respondents went out for drinks in the same period, a +3% increase compared to December.
To celebrate New Year’s Eve, 60% of respondents patronized an on-premise establishment, either through visiting on-site (33%) or through takeout or delivery (27%), CGA reported. And more on-premise-centric holidays are on the way.
“With key occasions such as Valentine’s Day and the Super Bowl on the horizon, drinks suppliers should be considering how to capitalize on how consumers will behave – with key shifts across category consumption, choice of venue, and spend,” Hummel wrote. “For example, last year CGA highlighted that while fine dining venues saw an uptick in visitation across Valentine’s Day, there are key opportunities for casual dining chains and independently owned restaurants as well.”