Nightclub & Bar - December 2009

Special Report:
Tracking Drink Trends
Bars Outperform Other On-premise Segments at the Close of the Third Quarter

By Donna Hood Crecca

Aquick glance at the numbers on these pages could certainly drive one to reach for a drink, and possibly a second immediately after. But take a closer look before doing so; some interesting trends and opportunities are lurking in our second round of data from GuestMetrics. The report, provided exclusively to Nightclub & Bar by the Leesburg, Va.-based firm that tracks on-premise spirits, wine and beer sales via operator point-of-sale data, reflects sales from January through September of this year at more than

2,800 establishments in six markets.

The first trend that emerges is that “bars are the best performing segment,” when compared to casual dining and fine dining outlets, says Tammy Posten, COO of GuestMetrics. The bar segment, which includes nightclubs, was trending down 7 percent nationally — meaning in all six of the markets tracked — for the nine months ending Sept. 30. That represents a slowing rate of decline; bars were down 11 percent for the first six months of the year.

Total beverage alcohol sales in all segments — bars, casual dining and fine dining — held at - 17 percent, with casual dining declining 14 percent and fine dining declining 23 percent for the nine-month period, compared to - 12 and - 21 percent for the first six months of the year for casual and fine dining, respectively. Posten attributes the slower rate of decline among bars to two factors: seasonality and promotions.

“Bars traditionally fare better during summer months, and we’re seeing bars and nightclubs running a lot more promotions in the summer months and more beverage promotions overall

Beverage Alcohol Sales Trends: January – September 2009

Dollar sales compared to January – September 2008

Total Bev. Alcohol
Bar

Casual Dining

Fine Dining Spirits

Bar

Casual Dining

Fine Dining Wine

Bar

Casual Dining

Fine Dining Beer

Bar

Casual Dining

Fine Dining

NY -25% -25%

-6% -29% -9% -9% -4% -12% -37% -37% -13% -38% -11% -11% -7%

-13%

DC -15% -15%

-8% -25% -13% -13% -10% -20% -33% -33% -23% -36% -5% -5% -5%

-8%

ATL -19% -5%

-17% -29% -16% -3% -17% -22% -31% -22% -28% -37% -13% -7% -12%

-27%

MIA -13% 18%

-15% -23% -12% 16% -16% -26% -25% -9% -22% -28% -8% 30% -13%

-12%

CHI LA NATIONAL -17% -18% -17% -18% -16% -7%

-16% -18% -14% -19% -18% -23% -18% -17% -15% -20% -15% -5% -17% -19% -15% -18% -15% -20% -20% -24% -29% -27% -19% -22% -24% -29% -25% -19% -22% -30% -14% -9% -10% -14% -16% -8% -13% -8% -10%