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What South Africans want from bars and restaurants
CGA by NIQ recently launched its flagship On Premise User Study (OPUS) in South Africa, which provides a comprehensive look at how South African consumers interact with bars, restaurants, and other venues and explores key metrics such as consumer behaviours, brand preferences and occasion trends.
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An executive summary of the study reveals a promising outlook for South Africa’s on-premise beverage market, particularly in the spirits and cocktails sectors.
Despite ongoing economic challenges, including a cost-of-living crisis, South Africans continue to prioritise dining and drinking out, with half of the population visiting on-premise venues weekly.
CGA by NIQ Client Solutions Manager for EMEA Abhi Sehgal explains, "Despite rising costs, South Africans' weekly visits to bars and restaurants highlight the nation’s strong appetite for social experiences. This suggests a resilient market, particularly among younger, affluent consumers who are willing to pay more for premium offerings.”
Key consumer trends
According to the CGA by NIQ OPUS South Africa Executive Summary, the frequency of on-premise visits remain high, with younger and more affluent consumers making up the majority of these frequent visitors.
This presents substantial opportunities for beverage brands and hospitality venues to align their offerings with key market trends and consumer preferences. Understanding these behaviours and tailoring products accordingly can provide significant competitive advantages.
One of the standout findings from the report is that nearly 49% of South Africans visit on-premise venues weekly, with an impressive 87% visiting at least once a month.
This frequency of visits underlines the enduring importance of out-of-home experiences in South African culture, where dining and drinking are central to leisure and social life.
Spirits and cocktails emerge as leading choices for on-premise consumers, with 27% of visitors consuming spirits and 38% opting for cocktails.
The rising popularity of cocktails is noteworthy, as 60% of cocktail drinkers enjoy them every time they visit a venue. This trend is especially pronounced among younger consumers and women, who are key drivers of demand in this category.
With cocktail consumption on the rise, there is a significant opportunity for brands to innovate and cater to this growing market segment.
Opportunities for growth
The research identifies several areas of opportunity for businesses looking to succeed in South Africa’s on-premise market:
- Millennials with money - Younger visitors, typically more affluent with higher disposable income, represent a key demographic for premium brands. By offering high quality products and experiences, venues can attract and retain these valuable consumers, driving higher sales and loyalty.
- Capitalising on cocktails - With a large proportion of consumers choosing cocktails during their visits, there is a clear opportunity for spirit brands to innovate within this category. Popular cocktails include rum-based drinks like Mojitos, but there is also growing demand for non-traditional offerings, signalling room for creativity and new product development.
- A premium state of mind - Despite economic pressures, South Africans are willing to pay more for premium experiences. In fact, 61% of consumers stated they are willing to pay extra for a higher quality drink.
- Bottles are best - Bottle service remains an attractive option for social groups, with 40% of spirits and wine consumers opting for bottle orders in venues. This trend is particularly popular among younger consumers, with gin and whisky being the most common choices for bottle service.
- Leveraging special occasions - Special occasions, including birthdays and anniversaries, are major drivers of on-premise visits, particularly among younger consumers. After work drinks, high-tempo nights, and live sports events present lucrative opportunities for targeting spirits drinkers who enjoy socialising during these occasions.
In conclusion, the report underscores the wide variety of occasions that draw South African consumers to on-premise venues.
From relaxed afterwork drinks to casual dining and lively celebrations, these frequent visits offer brands countless opportunities to tailor their offerings to specific contexts.
By tapping into these diverse touchpoints, businesses can deepen their engagement with consumers and drive increased sales.
