The economy is slowing traffic at many of the large and mature casual-dining chains, but 67% of customers still prioritize alcohol when choosing a restaurant in that segment.
That was one of the trends that emerged during a Technomic session on “What Consumers Really Want from Behind the Bar,” held on Saturday during the National Restaurant Show in Chicago that ended Tuesday. Dave Henkes, Technomic senior principal and head of strategic partnerships, and Julie Heseman, director, research & insights, presented a snapshot of the casual-dining bar scene and how operators can win the battle for traffic and alcohol sales.
The good news is that 56% of consumers still want a drink to be part of the dining-out experience, according to Technomic data. And that number climbs to 67% for millennials and Gen Zers of legal drinking age. But as they continue to watch their wallets, there’s been a notable shift away from pricey craft cocktails, with 30% of operators saying lower-priced mixed drinks in the $6 to $7 range now make up a larger percentage of orders.
Barbell pricing is a smart way to attract these customers, said Henkes—a bar strategy that has spelled success for Chili’s. The casual-dining chain offers margaritas for $6 for drinkers with tight budgets, but balances those with $15 drinks that use premium spirits. The tiered structure has helped Chili’s increase sales of margaritas over $10, because not everyone wants a $6 drink.
Consumers are also showing more interest in happy hours as an affordable option to dine out without breaking the bank, said Heseman. “These can be a way to build incremental sales and a gateway to early dinner.” But deep discounts are a losing way to address the issue. Instead, think of drink and bar bite pairings, different specials for each day of the week, and innovative limited-time offers, like 2-ounce flights of martinis, beer or wine.
Local spirits and beers are also gaining ground with Americans, as tariffs begin to impact the costs of European, Latin American and Canadian imports. A promotion around lower-priced and unique local distillery and brewery products is a potential traffic builder, the speakers agreed.
Table stakes for any casual-dining drinks menu is a robust selection of zero- and low-proof drinks that are as appealing as their full-proof counterparts. Consumer demand for these is growing, especially among younger drinkers.
The Garden Escape is a zero-proof drink created by mixologist Tony Pereyra. | Photo by Pat Cobe
That was confirmed by the exhibitors in the Beverage Room of the National Restaurant Show, where low-alcohol canned cocktails, botanicals, flavorful, low-sugar mixers and teas were in abundance. There’s a larger market for drinks in the 4.8% to 8.5% alcohol range, and flavors like pineapple-coconut, yuzu, peach, hibiscus and lavender are trending. Similar flavor profiles showed up in juice-based mixers that can be turned into well-balanced mocktails in the hands of a pro.
Selling glassware to restaurants is Libbey’s main mission, so the company hired well-known mixologist Tony Pereyra to show off its wares by shaking up drinks at the booth. My favorite was The Garden Escape, a non-alcoholic mix of carrot and mango juices, lemon, honey, cardamom and turmeric. A garnish of edible flowers and carrot chips creates an impressive mocktail that can measure up to any cocktail.
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