OPUS provides vital research into consumer behavior, preferences and trends in the on-premises channel, exploring how South African consumers engage with bars, restaurants and other hospitality venues, and discovering category preferences. and opportunities.
On-premises in South Africa remains an important part of consumers’ lifestyles, despite the challenges posed by the cost of living crisis. According to OPUS, 87% of South African on-premises consumers visit a hospitality venue at least once a month, with half (49%) visiting weekly. Younger consumers with higher disposable incomes are driving this trend, making on-premises an important market for suppliers looking to reach this valuable demographic.
Casual dining restaurants dominate the on-premises world, with more than half (57%) of consumers visiting these restaurants in the past three months. Formal eateries are also very popular (43%), followed by bars (34%) and pubs and hotels (31%).
Special occasions have a strong impact on driving visits, especially among female consumers, outperforming the index by +7 points. Additionally, after-work drinks are also a common reason for going out, especially among weekly visitors, with a third citing it as an important occasion.
The cost of living crisis is being felt across South Africa and consumers (43%) are somewhat concerned about the current impact. However, there remains some optimism, with fewer consumers (39%) expecting the crisis to worsen in the next three months. Despite these economic pressures, South Africans continue to consider eating and drinking out as essential activities. In fact, 59% of consumers strongly or somewhat agree that socializing at on-premises venues is a fundamental part of their lifestyle, with this sentiment outperforming weekly visitors by +15 points. Masu.
As consumers return to on-premises more frequently, the demand for high-quality experiences is increasing. More than two-thirds of consumers are willing to pay extra for premium drinks, especially in Cape Town, where consumers are more likely to trade up for better quality ( +3 points). This suggests the potential to leverage a premiumization strategy that appeals to South Africa’s growing thirst for innovative and sophisticated products.
Abhi Sehgal, Client Solutions Manager EMEA, CGA by NIQ said: “The launch of OPUS in South Africa is a significant milestone in bringing world-class consumer insights to a dynamic and high-potential market. For the first time, South Africa’s leading on-premises stakeholders are Now you have access to robust, data-driven insights that help you better understand the key drivers behind customer behavior and make informed decisions. OPUS helps businesses stay ahead of trends, adapt to evolving consumer demands, and ultimately stay relevant for the future.”
Accessible through core outputs and custom project packages, as well as a unique self-service platform, OPUS is a single source of information for consumers to understand what they’re doing on-premises and why. To find out more about CGA’s South Africa-wide consumer research, download more information here or contact Abhi Sehgal here.
