The upcoming first week of September brings about three major events for consumers this year: the Labor Day weekend, the kickoff of this year’s National Football League (NFL) season and the return of federal student loan interest.
In CGA’s latest On-Premise Impact Report, the NIQ-powered on-premise market research firm gave a preview of expected performance for bars and restaurants, as well how many consumers will be impacted by the end of student loan forbearance.
Labor Day
More than one-third (36%) of the 580 consumers surveyed by CGA plan to visit on-premise establishments for Labor Day (Saturday, September 1). That number increases to 49% for consumers aged 21-34.
Beer was the most popular beverage for those planning to visit the on-premise for the holiday, with 53% planning to drink beer, followed by soft drinks (29%), vodka (27%), tequila (26%), whiskey (25%) and table wine (25%).
Nearly one-third of those celebrating (31%) plan to visit sports bars, followed by independently owned restaurants (25%) and casual dining chains (24%). The majority of consumers (46%) plan to visit the on-premise in the early evening (5 p.m. to 8 p.m.), followed by “happy hour” (37%), lunch (31%) and mid-afternoon (30%).
NFL Kickoff
The 2023-2024 NFL season kicks off Thursday, September 7. Nearly half of consumers (48%) plan to watch the Detroit Lions vs. Kansas City Chiefs game at home, while 14% plan to watch at a bar or restaurant. The latter increases to 20% when including only consumers aged 35-54. Five percent of consumers plan to watch the game live at Arrowhead Stadium.
Of the 14% who plan to visit the on-premise for the game, 61% plan to drink beer – an increase of 5% versus the same poll in August 2022. Soft drinks were the next most popular drink (32%), followed by tequila (31%), whiskey (27%), vodka (25%) and unspecified “shots” (25%).
Student Loan Payments
Federal student loan repayments have been in forbearance since March 2020, as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). Despite some lawmakers’ efforts to extend the forbearance period, loan interest will go back into effect on September 1, with payments due starting in October.
More than a quarter of consumers surveyed by CGA said they or their partner/spouse will have to make repayments. That number increases to 50% when including only 21-34 year olds.
Of the consumers who will be impacted, 67% strongly agree/agree that the forbearance period ending will have a “negative impact on my current disposable household income.” Similarly, 67% said they expect to cut back their visits to bars and restaurants and 67% said they expect to make “a conscious decision to visit cheaper (lower cost) bars and restaurants.”
Nearly one-third (64%) said they plan to buy fewer drinks, “but of the same quality as I currently buy,” while 63% said they plan to buy “cheaper drinks.”
Still, more than a quarter of all consumers surveyed (26%) plan to prioritize regular food-led visits to bars and restaurants over the rest of 2023, second only to buying clothing. Nearly one-in-five (17%) plan to prioritize regular drink-led visits, increasing to 22% when including only 21-34 year olds. Nearly one-quarter (24%) also plan to prioritize “special occasion visits to bars/restaurants,” while 19% plan to prioritize live events.