Restaurants: Brunch booms, nightclubs struggle and beer still dominates on premise
- InsightTrendsWorld
- Mar 26
- 9 min read
Why it is the topic trending:
Shifting Consumer Behavior in On-Premise: The article highlights significant changes in when, why, and what people are drinking when they go out, directly impacting the on-premise market.
Opportunities for Craft Brewers: The data presented identifies specific areas like brunch, draft beer, and non-alcoholic beverages where craft brewers have potential for growth and engagement.
Data-Driven Insights: The analysis is based on recent data from CGA by NIQ, a reputable source for on-premise market information, making the trends and opportunities particularly relevant and actionable for industry professionals.
Strategic Guidance for Breweries: The article provides key takeaways and insights specifically tailored for craft brewers to adapt their strategies and offerings to the evolving market dynamics.
Overview:
The article presents the latest data from CGA by NIQ on the shifting on-premise market in the US, focusing on the implications and opportunities for craft brewers. Key trends highlighted include the rise of brunch for Gen Z and parents with higher spending on cocktails, the decline in nightclub traffic but continued importance of experiences in high-energy venues, the dominance of draft beer in on-premise alcohol sales with craft beer leading the draft category, and the increasing popularity of ready-to-drink (RTD) and non-alcoholic (NA) beer options. The article emphasizes that customer experience beyond just the beer is becoming a critical competitive edge for taprooms and breweries.
Detailed Findings:
Brunch Boom: 39% of 21-24-year-olds and 47% of parents now go out for brunch, making it the top daypart for Gen Z. Consumers spend an average of $12.49 on cocktails during brunch, the highest of any time of day. Beer, including sessionable IPAs, fruit-forward sours, and low-ABV options, has a strong presence at brunch, with alcohol content and calorie information influencing choices.
Nightclub Struggles: One in five casual nightclubs has closed since March 2020 due to rising costs, shifting habits, and dating apps. However, "high energy" venues still see strong alcohol spending, with consumers prioritizing experience over budget.
Draft Beer Dominance: Beer holds 40.5% of all on-premise alcohol sales, with draft beer now accounting for 52.3% of out-of-home beer volume, surpassing packaged beer. Craft beer captures 47.2 cents of every draft dollar spent. While overall beer sales dropped by 2.9%, draft only slipped by 2%, indicating the importance of freshness and presentation.
RTD and NA Beer Growth: RTDs grew significantly in 2024, especially in bars and nightclubs, attracting younger drinkers with new flavors and convenient formats. Non-alcoholic beer sales increased by 33.7% year-over-year on premise, driven by health-conscious consumers, with IPAs and stouts leading this growth at 170% and 130% respectively.
Experience Matters: Beyond the beverage itself, customer experience is the next competitive edge for taprooms, encompassing elevated brunch offerings, expanded NA menus, technology integration, events, and well-trained staff.
Key Takeaway:
The on-premise market is evolving, with brunch becoming a prime opportunity for craft brewers to connect with younger demographics and families, draft beer remaining the dominant format with craft beer leading the charge, and RTDs and non-alcoholic options gaining significant traction. Craft brewers need to innovate beyond just their beer, focusing on creating memorable customer experiences to thrive in this dynamic market.
Main Trend:
The Diversification and Experience-Driven Evolution of the On-Premise Market for Craft Beer
Description of the trend (please name it):
The trend can be named "Craft On-Premise Reinvention." This trend signifies the ongoing transformation of the on-premise market for craft beer, moving beyond traditional beer-centric models to embrace diversification in offerings (including brunch-friendly styles, NA options, and potentially RTDs) and a heightened emphasis on creating comprehensive and memorable customer experiences within taprooms and other venues.
What is consumer motivation:
Seeking Diverse Occasions for Outings: Consumers, particularly younger generations and parents, are looking for varied experiences when going out, with brunch becoming a key occasion.
Demand for Quality and Freshness: The preference for draft beer underscores the value consumers place on the quality, flavor, and presentation of their drinks.
Health and Wellness Considerations: The growth of NA beer reflects the increasing number of health-conscious consumers seeking alcohol-free alternatives.
Convenience and New Flavors: The popularity of RTDs appeals to consumers looking for convenient and innovative drink options, especially in high-energy environments.
Desire for Memorable Experiences: Beyond just the drinks, consumers are seeking engaging and memorable experiences when they visit on-premise establishments.
What is driving the trend:
Changing Lifestyles and Priorities: The rise of brunch culture among younger demographics and families reflects evolving social habits and priorities.
Innovation in Craft Brewing: Craft brewers are increasingly experimenting with new beer styles, including those suitable for brunch, low-ABV options, and non-alcoholic alternatives.
Growth of the RTD Market: The broader popularity of RTDs across the beverage industry is influencing on-premise consumption.
Increased Focus on Health and Wellness: Growing consumer interest in health and wellness is driving the demand for NA beverages.
Competitive On-Premise Landscape: Establishments are recognizing that offering a superior customer experience is crucial for standing out in a crowded market.
What is motivation beyond the trend:
Beyond the specific trends in the on-premise craft beer market, the underlying motivation reflects a broader consumer demand for variety, quality, and experiences in their leisure and consumption choices, coupled with an increasing awareness of health and wellness.
Description of consumers article is referring to (what is their age?, what is their gender? What is their income? What is their lifestyle):
The article refers to several consumer segments:
Gen Z (21-24 year olds): Highly engaged with brunch, making it their top daypart for going out.
Parents: Also frequent brunch outings, close behind Gen Z.
General On-Premise Alcohol Consumers: Show a preference for draft beer due to its freshness and flavor.
Younger Drinkers: Drawn to RTDs in bars and nightclubs due to new flavors and convenience.
Health-Conscious Consumers: Driving the growth of the non-alcoholic beer market.
Nightclub Attendees: May earn less but spend more per visit, prioritizing the overall experience.
The article does not provide specific information about the gender or income of these consumer segments beyond the note about nightclub attendees. Their lifestyles generally include socializing and dining out, with Gen Z and parents prioritizing brunch, younger drinkers frequenting bars and nightclubs, and a segment of consumers focusing on health and wellness.
Conclusions:
The on-premise market presents a dynamic landscape for craft brewers. While nightclubs face challenges, brunch offers a significant growth opportunity, particularly with younger demographics and families. Draft beer remains the dominant format, with craft beer leading the way. The increasing popularity of RTDs and NA beers signifies the need for diversification. Ultimately, success in the evolving on-premise market hinges on craft brewers innovating beyond their core beer offerings and focusing on delivering exceptional and multi-faceted customer experiences.
Implications for brands:
Brunch Integration is Key: Craft brewers should consider how their beer styles can complement brunch menus and attract morning and mid-day traffic.
Draft Beer Remains Core: Maintaining high-quality draft programs with consistent offerings and rotating styles is crucial for on-premise success.
Diversification is Necessary: Exploring non-alcoholic options and potentially collaborations on RTDs can open up new consumer segments.
Experience is a Differentiator: Taprooms and brewery venues should focus on creating memorable and engaging experiences beyond just the beer.
Implication for society:
Evolution of Social Drinking Habits: The shift towards brunch and the growth of NA beer reflect changing societal norms around alcohol consumption.
Support for Local Breweries: The emphasis on draft and the importance of taproom experiences can bolster local craft brewing communities.
Implications for consumers:
More Diverse On-Premise Options: Consumers can expect a wider variety of drink choices, including craft beers tailored for brunch and more non-alcoholic selections.
Enhanced Out-of-Home Experiences: The focus on customer experience in on-premise venues will likely lead to more engaging and enjoyable outings.
Implication for Future:
The on-premise market will likely continue to evolve, with brunch remaining a significant opportunity, draft beer maintaining its stronghold, and RTDs and NA options becoming increasingly mainstream. Craft brewers who prioritize innovation in both their beverages and the overall customer experience will be best positioned for long-term success.
Consumer Trend (name, detailed description):
"Experiential Out-of-Home Consumption": This trend describes the increasing consumer expectation for on-premise visits to be more than just about the food or drinks; they seek comprehensive and memorable experiences that encompass the atmosphere, service, and overall ambiance of the venue.
Consumer Sub Trend (name, detailed description):
"Daypart-Specific Socializing": Consumers, particularly younger generations and families, are increasingly engaging in socializing and going out during non-traditional dayparts like brunch, indicating a shift in when and how they choose to frequent on-premise establishments.
Big Social Trend (name, detailed description):
"The Blurring of Consumption Occasions": Traditional boundaries between when certain beverages or foods are consumed are becoming less defined, as seen with beer's growing presence at brunch.
Worldwide Social Trend (name, detailed description):
"The Global Rise of Craft Beverage Culture": The appreciation for craft beverages, including beer, continues to grow globally, with consumers seeking out unique flavors, local producers, and authentic experiences.
Social Drive (name, detailed description):
"Seeking Versatility and Choice in Social Settings": Consumers desire a range of options to suit different occasions, preferences, and even health considerations when they are out socializing.
Learnings for brands to use in 2025 (bullets, detailed description):
Understand Daypart Preferences: Tailor offerings and promotions to align with the specific needs and preferences of consumers during different times of the day, particularly the growing brunch crowd.
Champion Your Draft Program: Ensure the quality and consistency of your draft beer offerings, as this remains a key driver of on-premise success for craft brewers.
Embrace Non-Alcoholic Options: Recognize the increasing demand for NA beers and consider adding or expanding your NA offerings to capture a broader audience.
Think Beyond the Beer: Develop strategies to enhance the overall customer experience in your taproom or at on-premise accounts, considering food pairings, events, and staff training.
Stay Informed by Data: Utilize market data and consumer insights to stay ahead of evolving trends and make informed decisions about your offerings and strategies.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Develop Brunch-Focused Beer Styles and Pairings: Create beer styles that complement brunch menus and offer suggested food pairings to on-premise accounts.
Invest in Draft Quality and Variety: Maintain impeccable draft systems and offer a dynamic range of beer styles, including rotating and limited releases, to keep consumers engaged.
Introduce or Expand Non-Alcoholic Beer Selections: Offer high-quality and diverse NA beer options, potentially including popular styles like IPAs and stouts.
Enhance the Taproom Experience: Invest in creating a welcoming and engaging atmosphere in your taproom through events, entertainment, comfortable seating, and knowledgeable staff.
Explore Collaborations for RTDs: Consider partnering with other beverage companies to create or offer unique and appealing RTD options that align with your brand.
Final sentence (key concept) describing main trend from article:
The on-premise market for craft brewers is undergoing a significant evolution characterized by the importance of brunch, the dominance of draft beer, the rise of alternative beverage options, and an overarching emphasis on the holistic customer experience.
What brands & companies should do in 2025 to benefit from trend and how to do it:
In 2025, craft brewers should strategically adapt to the evolving on-premise market by:
Developing beer styles and offerings that specifically cater to the growing brunch daypart: This includes considering lighter, more sessionable options or fruit-forward styles that pair well with typical brunch fare, and actively marketing these options to on-premise accounts that serve brunch.
Maintaining a strong focus on the quality, variety, and presentation of their draft beer offerings: Draft remains the champion in on-premise sales for craft beer, so ensuring consistent quality, a diverse tap list, and well-maintained draft systems is crucial for attracting and retaining customers.
Actively exploring and investing in the non-alcoholic beer segment: The significant growth in NA beer provides a valuable opportunity to reach health-conscious consumers and expand their customer base without compromising their brand identity; this could involve brewing their own NA options or partnering with brands that specialize in this area.
Final Note:
Core Trend:
"The Craft Brewery as a Multifaceted Destination": Taprooms are evolving beyond just beer sales to become venues that cater to diverse occasions and preferences, offering brunch, non-alcoholic options, and enhanced experiences.
Core Strategy:
"Diversification and Experience-Centricity in On-Premise Engagement": Craft brewers need to diversify their offerings beyond core beers and focus on creating memorable and engaging experiences within on-premise settings to attract and retain customers.
Core Industry Trend:
"The Maturing and Broadening of the Craft Beer Market": The craft beer market is expanding to include more diverse product types and consumption occasions, reflecting evolving consumer tastes and lifestyles.
Core Consumer Motivation:
"Seeking Variety, Quality, and Engaging Experiences in Social Settings": Consumers visiting on-premise establishments are motivated by the desire for diverse drink options, high-quality beverages, and enjoyable and memorable experiences that go beyond just the product itself.
Core Trend Detailed:
"Craft On-Premise Reinvention": This core trend highlights a crucial turning point for craft brewers in the on-premise market. No longer can breweries solely rely on the appeal of their traditional beer offerings. The market is demanding a more holistic approach, where diversification in product lines—including brunch-friendly beers, innovative RTDs, and high-quality non-alcoholic options—is becoming increasingly important. Furthermore, the focus has shifted towards creating comprehensive and memorable customer experiences within taprooms and other on-premise venues. This reinvention requires breweries to think beyond the glass, considering elements like food pairings (especially for brunch), engaging events, comfortable atmospheres, and knowledgeable staff. By embracing this multifaceted approach, craft brewers can effectively cater to evolving consumer preferences, tap into new market segments, and thrive in an increasingly competitive on-premise landscape.
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