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Industry

April 20, 2017

Cafe Liquor

Over time, one’s drinking habits can change

One of the biggest changes we have seen recently is with the younger generations going from sticking with their one or two well-known familiar brands (VB or Jack Daniels, for example) to a myriad of boutique craft beers, whiskeys and wines.

In 2017, the range of labels to choose from has increased significantly, resulting in a broader spectrum for their “go to” beverages. The typical stereotype of the younger generation embracing change and innovation is only reinforced by this observation. With more willing to try new things, it doesn’t guarantee that these new products will be successful; however, it does give them a good a start.

As with supply and demand, these changes put pressure on the café industry, as people want this selection in their local cafés. A good example of this is mainstream beer brands versus artisan style craft beer.

The Australian café industry is very trend driven, and now with beer and wine making its way into cafés, the liquor market is also being affected by what is “on trend”.
Over recent years, Café Pulse research has been collecting data on alcohol service trends in the Australian café industry. This collective data from 2015 will hopefully be seen as an important look into the role liquor plays in our coffee market.

Interesting side notes:
• One in three cafés were licensed, indicating a growing trend in the acceptance and expectation for alcohol at cafés.
• The average licensed café turnover is between $61 – $100k PA, with the majority selling basic packaged retail size beer and local wines at competitive restaurant pricing.
• Most café owners purchased their packaged liquor from a local supermarket chain outlet (i.e Dan Murphy’s) choosing not to use an account system liquor distributor.
• The average liquor sales over the first two years of their inaugural launch have steady growth.


Interesting side notes:
• Lack of bench space, limited seating and brand label advertising were the biggest contributors to beer served in the bottle instead of a glass.
• Wine was the largest liquor purchase at 55%.
• Most café owners displayed wine glasses on the tables to encourage patrons to buy wine by the glass and/or pay corkage for BYO.
• A growing trend in establishments offering both “by the glass” or “by the bottle” services.

Questions to Consider

What is the opportunity?
Café owners can increase sales and growth in their business by providing liquor options as part of their drinks menu.
What is the one thing café owners should change to help their liquor sales?
Ensure your product range is well displayed. Have your liquor items as part of the café menu, with detailed information and a history background. Have staff that are passionate and knowledgeable about their liquor menu.
What does the future hold?
Current trends are seeing a positive growth. To ensure this growth continues, one of the main obstacles will be with current alcohol related problems in society intertwining with the café lifestyle. An RSA (Responsible Service Of Alcohol Accreditation) is required when working in licensed venues, meaning more café owners will require any new and existing staff to attain their accreditation.

Written by David Parnham
For more details contact Café Pulse: David@cafeculture.com or mobile 0423 200 206





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