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Consumer Trends: Bar Business

Despite a tough economy, Americans are still buying plenty of adult beverages.

By Mary Boltz Chapman, Editor-in-Chief -- Chain Leader, 9/1/2008

Bar customers
Research shows that the tough economy hasn't adversely affected alcohol consumption.
Steele Platt, founder and CEO of Yard House, once told Chain Leader that his bar-heavy concept was prepared for economic flux: In happy times, he said, people eat. In hard times, they drink.

Nielsen Company data seem to agree. In June the research company reported that nearly half of consumers surveyed said the economy has had no impact on the amount they spend on beer, wine or spirits; less than 20 percent say there has been a significant impact. More than 80 percent of respondents say they are spending the same on alcoholic beverages as they did a year prior.

More alcoholic beverage trends

Gallup's annual Consumption Habits survey, conducted in July, shows that 42 percent of U.S. drinkers said beer is their top alcoholic beverage choice, wine is the favorite of 31 percent, and 23 percent choose spirits. In last year's poll, 40 percent cited beer; 34 percent, wine; and 22 percent, spirits. The study reveals the decrease in wine occurred mostly among 30- to 49-year-old drinkers.

Long-term data show beer consumption on a slow decline. According to U.S. Department of Agriculture, Economic Research Service data, U.S. per-capita consumption of beer was 21.3 gallons in 2005, 21.8 in 1995, and 23.8 in 1985. Per-capita consumption of wine was 2.4 gallons in 2005, 1.7 in 1995, and 2.4 in 1985. And Americans consumed approximately 1.4 gallons of spirits in 2005, 1.2 in 1995 and 1.8 in 1985.

Looking within restaurants and bars, Technomic Inc. reports that spirits comprise 43 percent of all away-from-home drinking occasions; beer represents just over half.

According to The NPD Group data for the 12 months ending April 2008, 33 percent of casual-dining and fine-dining meals on the weekend, Friday thru Sunday, included an alcoholic beverage, while 27 percent of weekday meals did. In 2006, 37 percent of adults reported having drinks with weekend dinners and 34 percent did on weekdays.

Birthdays are the top occasions for drinks, according to the idrinkwell.com 2008 National Survey of American Cocktail Culture, Attitudes and Trends, released in June. The next two most popular occasions were vacations and job promotions.

The report also shows that 94 percent of people choose a drink based on their mood, 84 percent on what they are eating, 83 percent on who they are with, and 75 percent on the price.

 DRINKS WITH DINNER--AND LUNCH
The days of the three-martini lunch may be over, but plenty
of consumers still have drinks with the midday meal. Even more 
drink with dinner, according to Restaurants & Institutions' 
2008 New American Diner Study.

All Female Male
Respondents' last lunch in a restaurant
Had beer 6.6% 4.7% 8.6%
Had cocktails 4.9% 5.4% 4.3%
Had wine 4.4% 3.4% 4.5%
Respondents' last dinner in a restaurant
Had beer 14.2% 9.3% 19.4%
Had cocktails 11.5% 12.5% 10.5%
Had wine 12.4% 12.2% 19.4%
Source: Restaurants & Institutions' 2008 New American Diner Study

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