Get Ready for the Great Brand Purge at Bars, Restaurants

Only 35% of bar and restaurant operators surveyed by Nielsen CGA expect to keep all the brands they stocked before Covid-19.

The survey also found that only 11% of operators have been able to generate sustainable profits with just a takeout/delivery basis.  Sixty percent said reduced fees from third-party delivery platforms would make takeout/delivery more sustainable.  But with the nation starting to reopen, 52% said they will continue offering take out/delivery once they are allowed to reopen, as it is expected that demand for these services will continue.

Suppliers can help, 50% said, by offering short-term product discounts and 46% said they are looking for help in driving footfall and in marketing to encourage people to return to bars and restaurants.

At least until regular sales patterns are established, more than half (52%) of operators anticipate reducing their range of both food and drink

Of those that need support with optimizing their drinks assortment, 57% of operators are asking for clear, evidence-based, recommendations from their suppliers.

Scott Elliott, SVP, Nielsen CGA, commented, “The majority of on-premise operators believe that they are in for a bumpy ride as the industry transitions towards a more predictable ongoing performance. They really want help, and the suppliers that offer exceptional support now will gain the kind of loyalty that may have seemed impossible before this crisis.

“That said, the stakes are high for these operators—who are in need of facts to help remove risk through this unprecedented operating period. Suppliers that work as true partners and offer real value to on-premise owners and operators will gain loyalty and advocacy, two of the most difficult things to achieve in the on-premise space.”

Nielsen CGA surveyed owners and operators and C-suite execs from more than 100 distinct U.S. on-premise businesses or groups, largely focused on independent concepts and small chains.

 

 

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