On Premise consumers see glimmers of recovery amid continued cost of living pressures in Britain and Ireland

New insights from CGA by NIQ reveal growing polarisation in On Premise behaviours across Great Britain and Ireland, as the cost of living remains a chief concern to both footfall and spend in the On Premise.

The latest research confirms a mixed picture. There are tentative signs of recovery but ongoing pressures on household finances continue to shape channel engagement, consumer footfall, and brand spend across the board. 

Some consumers are feeling small financial relief, demonstrated by a drop in the number of consumers moderately effected by the cost-of-living crisis in February. Conversely, the proportion of those still impacted a little has increased.  

Notably, more than half (55%) of UK households* say they are either severely or moderately impacted by the cost of living. As a result, this adverse impact is stirring up subdivisions in On Premise behaviours. 

High costs and less disposable income remain the biggest hurdle for the 42% of consumers who are going out less than usual (+6pp vs. a year ago). In contrast, 1 in 5 On Premise consumers are going out more. Social motivations, like friends and family going out more and treats are key factors driving increased visitation frequency.  

In terms of spend, fewer consumers have decreased their overall monthly spend compared to last year. But those watching their spend per visit are doing so to budget, indicating ongoing caution with disposable income.  

Everyday essentials like groceries remain the bigger priority for many, with 40% of UK consumers actively trying to save on their food shop. Eating and drinking out are perceived as more of a luxury or indulgence for some.  

Still, the On Premise retains value in public perception, often outperforming other discretionary categories like clothing and home improvement. There’s also growth potential in higher value visits, with consumers spending more for the following reasons: 

• To celebrate special moments 

• To treat themselves 

• Because of increased food and drink prices 

With changing spending habits, how can drinks suppliers be resilient to cost cutting and maintaining healthy profits? 

Value Consciousness Driving Category Behaviour 

Consumer demand for value is reflected in category performance. Beer, often perceived as good value over other categories, remains the most popular drink category in February, representing an open invitation for venue operators and drinks suppliers to capitalise on existing demand. 

Comparatively, the spirits category is under pressure as habits and occasions evolve. But the outlook isn’t without opportunity. Industry stakeholders must re-engage today’s value-conscious drinkers by focusing on emerging behaviours and preferences in areas such as: 

• Quality at Every Price Point 

• Value-led ranges 

• Stronger early daypart offerings 

• Understanding category sweet spots 

Similarly, cocktails are a standout. Consumers rate them highly for value, quality, and overall experience.  

Cocktails lead the way in drink experimentation – an added inventive when a third (34%) of consumers are trialling a new drink this month. Beer follows closely behind, while other categories lag. This willingness to experiment reinforces the need for targeted innovation and promotional strategies to inspire curiosity beyond the familiar. 

With value and cost consciousness driving behaviour, what strategies can operators implement to encourage category engagement across dayparts and shifting occasions? 

Karl Chessell, CGA by NIQ’s Director of Hospitality Operators and Food, EMEA, said: “It’s a pivotal moment for the British On Premise. Many consumers understandably remain cautious. But there’s growing appetite among important segments to go out, spend more, and try something new – if the offer is right. As we head into summer, operators and suppliers who focus on delivering value, relevance, and quality across the most effective touchpoints are best placed to sustain and grow that spend by aligning with changing consumer priorities.”