New research has indicated a current outlook of the New Zealand on premise hospitality industry and its latest trends.
The latest insights from the New Zealand OPUS H1 Survey have shed light on the current state of the New Zealand On Premise and its evolving dynamics, signposting the key trends industry stakeholders will need to stay ahead of competitors in market.
There’s been a noticeable shift in consumer visitation patterns, with rising living costs and inflation exerting financial pressure. Consumers are reducing the frequency of their visits, with a 14 percent drop in drink-led occasions over the past 12 months between June 2023 and June 2024. Whilst food-led visits have remained steady, with a modest one percent year-on-year increase.
Despite these fluctuations, the overall visitation rate has stabilised, with three quarters (76 percent) of consumers maintaining their monthly visits, though a quarter (24 percent) report visiting less frequently. This data demonstrated the need for brands, suppliers, and operators to adjust their strategies to facilitate varying consumer behaviour.
One of the most striking trends is the shift in visitation times. Early evenings continue to dominate footfall, yet there are clear signs that earlier dayparts are increasingly in favour. In April 2024, early evening visits (5 pm to 8 pm) declined by three percent compared to the previous year, while lunch (two percent) and mid-afternoon (two percent) visits saw slight uplifts.
This trend is particularly evident in high-tempo drink occasions, which are moving from late-night slots to earlier times. For instance, high-tempo drinks during daytime hours (before 5pm) have increased by five percent, while late evening visits (after 8pm) have reduced by seven percent.
Understanding these shifts is crucial for drinks brands, suppliers and venue operators looking to optimise their offerings and capitalise on these new visitation patterns.
Generational differences have played a significant role. Gen Z consumers have struggled to maintain their visitation rates, with a decline of eight percent in weekly visits compared to the previous year. In contrast, 41 percent of millennials are going out weekly (plus six percent).
Boomers continue to display a consistent preference for wine when visiting the On Premise, emerging as a valuable demographic for wine suppliers.
Tailoring strategies to these generational differences is key to successful market engagement.
Ready-to-drink (RTD) beverages continue to gain traction within the New Zealand On Premise, particularly among younger visitors. Over two in five (41 percent) of consumers are now frequently drinking RTDs, and awareness of draught/tap RTDs is spreading.
For all these reasons, efficient distribution, plus conversion of awareness to consumption, are worth investing in for suppliers aiming to optimise this trend.
"It’s more critical than ever during times of economic uncertainty for drinks suppliers and operators to really understand how these pressures are re-shaping consumer behaviour. The ability to adapt to shifting visitation patterns, dayparts, and generational preferences are pivotal for thriving amidst fluctuating dynamics. Those who can anticipate and respond to these trends will be best positioned to succeed in the coming months,” said Tom Graham, Customer Success at ANZ.
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