How Will the Year End?

Alcohol purchases are rebounding in full-service restaurants, a trend that is contributing to the positive – although slow – overall growth trend reported by Technomic Inc. In fact, alcohol is growing faster than was originally projected.

The Chicago-based hospitality market research firm projects casual dining and fine dining restaurant segments to finish 2011 with 2.0% and 1.5% sales growth, respectively. Bars and nightclubs are expected to achieve 2.0% growth, which is a downgrade in Technomic’s original forecast for that segment’s 2011 performance. 

Total alcohol sales in on-premise outlets are expected to grow 2.3% in 2011, outpacing total food and beverage sales (2.0%), Technomic reports. After several difficult years, wine leads the pack, with 3.0% growth projected, followed by spirits at 2.3% and beer at 2.0%. This forecast is an upgrade from the firm's projection made late last year, which called for a 1.9% sales increase for alcohol in restaurants in 2011.

Hotel bars and restaurants are expected to be the top growth segment, a trend driven by a strong rebound in hotel occupancy rates in the past year. Technomic calls for 5.9% growth in alcohol sales in lodging facilities, with wine delivering a 7% increase, and spirits and wine each finishing the year up 5.5%.

Source: Technomic Inc. 

Suggested Articles

This concept in St. Louis lets guests pay an hourly rate to drink all the cocktails, beer and wine they want.

So, you want to take advantage of eatertainment’s growing popularity but don’t know how to start. P.F. Chang's may have a viable way forward.

As the year draws to a close it's time to start thinking about what investments you want to make in 2020.