Every day, beverage sales data is collected from each hospitality outlet or establishment across the US and analyzed. This data is accumulated from a variety of sources, such as Nielsen, IRI, and various restaurant-specific data sources. This data can help hospitality businesses make decisions for developing new products and pricing strategies for existing products, developing marketing plans, expanding locations, assessing customer preferences, and evaluating competitive landscape.
The most successful hospitality businesses take advantage of data for decision-making related to adult beverage sales and consumption. However, analyzing adult beverage data often requires understanding key data points, as well as the dynamics of the industry and customer base. Here, we present the top 10 factors to consider when evaluating adult beverage data for operational and marketing insights.
1. Regional Considerations
When evaluating adult beverage data, it’s important to understand regional trends and preferences. Establishments in an area may serve different types of drinks or craft cocktails based on what is popular in the neighborhood. Furthermore, areas can have different regulations and taxes that effect the bottom line. When evaluating customer preferences, consider the seasonality and the local customs of different regions that may impact beverage sales. Understanding regional trends can help create a better capture of customer preferences.
2. The Growth of Craft Products
The craft beverage movement has been on the rise in recent years, and craft beer, wine, and distilled beverages now account for a substantial portion of beverage sales in the US. It is important to understand the trends in the craft segment, including unique customer preferences and local regulations. This data can also help determine the most profitable beverage items on a menu and how to adjust pricing or mark-up points to maximize profitability.
3. Price and Availability
One process used to evaluate customer preference is to measure how price and availability influence sales. Analyzing the data can uncover how customers respond to changes in price levels or availability of certain items. It is also useful to consider how pricing strategy can be adjusted to cater to different customer demographics.
4. Cross-Industry Data
For businesses that span multiple industries, such as those that also operate a bar or nightclub, it is important to understand how customers are responding to both traditional and craft beverage options. The intersection of beverage sales data from multiple outlets can provide a more comprehensive view of customer preferences across regions and industries.
5. Menu & Beverage Engineering
Beverage menus can affect customer preferences and expenditures, and data from beverage sales can inform menu engineering decisions. Menu engineering methods can help restaurants and bars identify key items that drive the most profit and select items that minimize cost.
6. Technology Trends
Technology has been transforming the hospitality industry in recent years, and beverage sales data can provide insights to stay ahead of the curve. For example, mobile ordering solutions have increased in popularity, and data can help analyze customer trends that can be used to optimize marketing and promotional efforts.
7. Expected Consumption
Another factor to consider with adult beverage data is the expected consumption of alcohol. The price, ABV, and serving size can inform how quickly a customer will consume a drink. Understanding consumption ranges, by product, can help managers understand how much alcohol they can offer per customer for a given price.
8. Profitability by Unit
To evaluate the profitability of each beverage item, consider the cost of ingredients and labor. Data from beverage sales can be used to understand the gross margin of each item and the contribution to overall profits. Additionally, profitability can be assessed by outlet, i.e. which outlets are more profitable than others when it comes to selling adult beverages.
9. Cross-Merchandising
While evaluating beverage sales data, consider how different alcoholic beverages are used in combination with food items or other beverages to increase customer spending and maximize profits. Data can also provide insights on customer preferences with regards to significant discounts, limited-time offers, and promotional materials, such as coasters or branded cups.
10. Product Expansion and Quality
Finally, data from adult beverage sales can inform decisions related to quality and product expansion. Data can provide insight into customer preferences for craft or imported beers, and can be used to inform decisions related to partnering with distributors, wineries, and breweries.
