INDUSTRY TRENDS

A To-Go Cocktail for Success

The to-go mugs, bottles and margarita glasses are here to stay. When it comes to who wants to-go alcohol, more than half of millennials (62%) and Gen Z adults (52%) report they would be more likely to pick a restaurant for takeout if they could also order alcohol beverages.

“The new alcohol-to-go laws modernized state alcohol policy and consumers can now enjoy more of the restaurant hospitality experience in the comfort of their own homes. As this report demonstrates, operators who innovatively connect the experiential aspects of their alcohol programs with a clear off-premise strategy are seeing enormous success with customers,” says Mike Whatley, vice president of state affairs and grassroots advocacy at the National Restaurant Association.

Menu Prices on the Rise amid Inflation and Staff Shortages

In 2023, inflation and staff shortages are regarded to be two of the biggest challenges impacting the food industry in the U.S. According to the Bureau of Labor Statistics, the Consumer Price Index for Food Away from Home increased by 8.8% between March 2022 and March 2023.

Restaurant and tavern owners and operators are resorting to raising their menu prices. In fact, full-service restaurant menu prices rose 8% between March 2022 and March 2023. Higher menu prices are expected to contribute to a projected $997 billion in sales for the food service industry in 2023.

That’s all according to a new report from the National Restaurant Association, which breaks down the latest data on alcohol trends and preferences among restaurant owners and consumers.

Despite more than half (54%) of delivery customers stating that the availability of alcohol beverages would make them more likely to choose a restaurant, and the growing number of states extending or making permanent the to-go options for restaurants, only one-quarter of adults who opted for takeout or delivery from a restaurant during the last six months included an alcohol beverage in the order. That leaves significant growth opportunities for establishments, particularly in how they market, package and differentiate their offerings, according to the report.

The report also reaffirms the association’s prediction that local experiences would be this year’s hottest trend. Despite the emphasis on to-go options, consumers also expect local restaurants to offer experiential events. For example, both wine (81%) and beer (79%) drinkers say they would participate in tasting events.

Finally, the report emphasizes the trust between consumers and restaurants, with most (82%) of adults that drink wine, beer and liquor saying they trust the staff at local restaurants to make good drink recommendations.

As per the National Restaurant Association, 92% of operators say the cost of food is a significant challenge in 2023, while 47% of operators expect competition to be more intense than last year.

The average U.S. household is believed to spend $3,008 per year on dining out. Although it is found that 34% of Americans visit casual dining restaurants once a week and allocate approximately 20% of their food budget toward dining out, a new survey finds that only 42% of consumers in the U.S. are willing to pay the full price required to dine at their preferred establishment.

This sudden change in consumer behavior is leading restaurants to offer discounts averaging 24% off menu prices to keep existing customers coming back and attract new ones. These discounts and promotions can increase revenue, but tighter profit margins can make it difficult to achieve success.

“Runaway inflation and staff shortages have increased the cost of food and labor. Surfing the breaks and swells brought on by circumstances beyond their control requires the restaurant industry to adopt a new way of thinking to adapt to the ebbs and flows,” acknowledges Brian Duncan, president of me&u USA, a global provider of attable ordering.

In the U.S., the hospitality and leisure industry currently has 2 million job vacancies and is still 500,000 employees below its pre-pandemic levels. About 58% of operators anticipate utilizing technology and automation to address labor shortage issues, but it is important to note that technology is designed to improve rather than replace human labor in the restaurant industry.

Mezcal Climbing the Ranks in Popularity

If there’s any single spirit making its way up the rankings right now, it’s mezcal, tequila’s smokier, more nuanced cousin. This agave-derived liquor can be sipped straight up or added to any cocktail that needs more depth. Gaston Martinez, co-founder of IZO Spirits , shares, “Mezcal blends a smoky complexity with a smooth, sippable taste. It’s both extremely distinctive and sure to please a crowd.”

When it first made its way onto the American spirits scene, mezcal was often best identified by a worm in the bottom of the bottle. It’s come a long way since then. Now spirit connoisseurs and experienced bartenders are integrating mezcal into their regular lineup.

Consumers across the country are clamoring for tequila’s more complex