The average price of 12 oz. equivalent (EQ) at U.S. bars and restaurants has increased +10.2% in the last 52 weeks (ending August 12) versus the previous 52-week period, according to CGA, an NIQ-powered on-premise market research firm.
Consumers paid an average of $4.96 for 12 oz. of beer in the 52-week period, versus $4.50 in the same period in 2022 and $4.20 in 2021.
The double-digit increase is “nearly twice the pace of growth in spirits,” CGA wrote. The average price for 1.5 oz. EQ of spirits at bars and restaurants was $7.24 in the 52-week period, a +5.3% increase year-over-year (YoY). Consumers paid an average of $6.87 per 1.5 oz. for the same period in 2022 and $6.60 in 2021.
The largest price increases were recorded for below premium beers (+12.9% YoY in 2023, and +9.7% in 2022), followed by domestic super premium (+11% in 2023, +7.7% in 2022), domestic premium (+10.3% in 2023, +8.3% in 2022), craft beer (+10.2% in 2023, +5.1% in 2022) and imports (+9.2% in 2023, +5.6% in 2022).
“These numbers show the inflationary pressures facing the on-premise in the U.S., which have inevitably led to price increases in bars and restaurants,” Matthew Crompton, CGA regional director, North America, said in the report. “They are also a reminder of the need for careful nuance in pricing strategies, with differing requirements from category to category and state to state.”
Of the 16 states reported by CGA, Tennessee recorded the highest average price increase for beer (+11.5% YoY), followed by Nevada (+11%). Eight other states recorded double-digit increases: Texas (+10.9%), Louisiana (+10.9%), Pennsylvania (+10.8%), Arizona (+10.6%), Florida (+10.4%), Colorado (+10.2%), Georgia (+10.1%) and Ohio (+10%).
California recorded the smallest increase YoY (+8.4%), followed by Oregon (+9%), Illinois (+9.2%), Washington (+9.3%), North Carolina and New York (both +9.9%).
Whiskey recorded the largest average price increase among spirits segments (+7% YoY), followed by coradials (+6.1%) and rum (+5.1%).
Of the 16 states reported, Ohio (+8.3%) and North Carolina (+7%) recorded the largest average spirits price increases. Ten other states recorded increases above the national average: Nevada (+5.4%), Arizona (+5.8%), Texas (+5.3%), Louisiana (+6.7%), Tennessee (+5.3%), Florida (+6%), Georgia (+6.1%), North Carolina (+7%), Ohio (+8.3%) and Pennsylvania (+6.3%).
California also recorded the smallest average price increase for spirits (+3.3% YoY), followed by New York (+3.9%), Washington (+4%), Oregon (+4.2%), Colorado (+4.2%) and Illinois (+4.2%).