We are now about three-quarters of the way through 2023 and on-premise trends have remained relatively similar to 2022, according to CGA, a NIQ-powered on-premise market research firm.
On-premise sales velocity for the week ending September 2 declined -4% versus the previous week, but was followed by a +2% week-over-week (WoW) increase in the latest week (ending September 9), following “ a similar pattern to last year,” CGA wrote in its latest On-Premise Impact Report.
Velocity was -2% below the same week in 2022, driven by a -5% decrease in ticket count year-over-year (YoY). Check value increased +3% YoY, as inflation continues to impact prices.
YoY velocity changes varied for each of the five observed states: New York (+8%), Florida (+3%), Texas (flat), California (-6%), Illinois (-11%).
Labor Day (September 4) resulted in a +27% increase in sales velocity versus an average Monday in 2023, making it the “most valuable Monday” so far this year. The increase was driven by a +25% lift in traffic.
The on-premise performance was in-line with Labor Day 2022, declining only -1% YoY. Ticket count declined -5% this year versus Labor Day 2022, while check value increased +4%.
All five observed states recorded double-digit increases on Monday versus an average Monday, with California leading the pack with a +36% increase.
The Sunday before Labor Day also saw a velocity uptick, increasing +7% versus an average Sunday. Drink-led establishments recorded a +38% increase in velocity versus an average Sunday, led by +48% increase at “neighborhood bars.”