The enduring appeal of the European On-Premise
Europe has long dominated global hospitality rankings, topping accolades such as the renowned Michelin Guide with countless starred fine-dining restaurants. Similarly, Europe claims nearly half of the entries on the coveted World’s 50 Best Bars list. Emerging European cities (recently Tirana and Bratislava) regularly join the chart, underscoring the vibrancy and dynamism of the continent’s bar scene. Admittedly, new venues from alternative hospitality markets – from Brazil to Singapore – are increasingly featured in these rankings too. Yet, rather than a decline in European relevance, they demonstrate the enduring appeal of the European On-Premise lifestyle and its influence on societies around the world.
In recent years, a range of global and regional challenges – from inflation to rising energy costs – have negatively impacted the sector with reduced visits to bars, pubs, and restaurants. But Europeans’ desire to drink and eat out has not faded. Three out of five people still rely heavily on the On-Premise as part of their lifestyle, with a striking 15% saying they would feel lost without it.
The daytime night out
While brands and operators can be confident that the continent’s strong connection to the On-Premise is unlikely to weaken any time soon, recognising the current challenging climate is essential to assessing strategies effectively. 43% of users go out less frequently than before, and nearly one in three admit they have a smaller budget when they do. This, however, has not translated into behaviour that necessarily prioritises cost-saving options. On the contrary, Europeans are 7 percentage points (pp) below the global average in seeking out value options when going out, and 3pp more unlikely to opt for less premium venues. Perhaps thanks to their enduring love for the On-Premise experience, these consumers increasingly treat going out as an affordable luxury. This means that they may go out less often, but they are willing to spend more on experiences they perceive as delivering greater value.
As consumers are keen to make the most of their time out, major events – from festivals and sporting fixtures to special occasions and celebrations – are becoming ever more important opportunities for brands and operators to maximise value sales. That said, people are highly selective, so brands must fine-tune their strategies to remain relevant on these occasions and succeed in an increasingly competitive landscape.
An awareness of shifting consumer behaviour is key to achieving this goal. Businesses must realise that what is happening across Europe today goes beyond short-term trends: the continent is experiencing fundamental societal changes that are reshaping how people live. When it comes to their lifestyle and engagement with On-Premise venues, these changes translate into earlier routine outings. The shift is particularly pronounced in France, where 19% of people are eating out earlier and 12% are drinking out earlier. It is more striking still in Greece, Spain, Italy and Portugal. In Greece, for example, meals and drinking out are moving earlier for 21% and 14% of consumers respectively. Drinking occasions are also shifting earlier for 11% of people in Portugal, 12% in Italy, and a notable 16% in Spain. These Mediterranean countries have traditionally been associated with later meal times than their Northern European counterparts, but they also have longstanding traditions of socialising in the late afternoon or early evening, such as the aperitivo in Italy or the tardeo in Spain. Likely, these habits are prevailing because they align more naturally with how people balance work and leisure today.
Food-led and drink-led occasions converge
Earlier drinking directly affects the types of venues people prefer to visit. Earlier dayparts often involve more food consumption, so it is no surprise how the lines between food-led and drink-led outlets are becoming increasingly blurred. Brands and operators adapt to a more holistic food-and-drinks experience if they want their strategy to successfully respond to these tendencies. But the move to earlier drinking also affects the categories consumers choose.
The aperitivo hour naturally lends itself to beverages traditionally associated with the occasion, so spritzes, for example, have strong potential on the late-afternoon menu. Yet these are not the only categories our surveys highlight as having strong potential in the current European On-Premise landscape.
The growing trend towards moderation is driving demand for soft drinks and no- or low-alcohol options, now selected by 24% and 30% of consumers respectively, and both continue to grow. But we are seeing traditional LAD categories on the rise, too. Cider, for example, is chosen by 23% of consumers and beer by 20%. In this case, the growth is less about moderation and more a response to the search for convenience, with one in five European consumers considering a larger serve size a sign of good value.
Regional dynamics and local nuances
European regions share numerous cultural elements with each other, giving rise to significant overarching consumer tendencies. Yet, the continent is also highly complex and diverse, and recognising the regional nuances this entails is a vital necessity for businesses.
In Northern European countries, for instance, opportunities rarely stem from high volumes of footfall. Weekly visitations are generally lower than the 60% global average, reaching just 35% in the Netherlands and 29% in Denmark, so brands simply need to adapt their strategies to capture consumers during these fewer occasions with a price-focused approach. Indeed, the key driver in this region is value: consumers tend to favour cheaper food options or seek out offers and discounts when costs rise.
Southern Europe shows higher weekly visitations to On-Premise venues, with 73% in Spain and Italy and 72% in Portugal. This gives businesses slightly more room to drive sales and build customer loyalty. One way to achieve this is through a strong social media presence: 58% of consumers say they have been influenced by the likes of Instagram and Tik Tok to visit a venue, and 49% have purchased an item after seeing it online. Businesses can also influence decisions directly in the venue by ensuring bar staff are well trained and brand-supportive, as 22% of consumers say they rely on bartenders when choosing what to drink, a notable 3pp higher than the average.
Meanwhile, Eastern European markets present a mixed picture. Visitations to bars, pubs, and restaurants are higher than in Northern regions, though not as high as in the Mediterranean, yet consumers here are particularly price-conscious, reflecting perhaps a greater financial pressure. In Romania, for example, 38% say they prioritise price when deciding what to order, and one in three considers perceived value for money. These factors outweigh considerations such as ambience, hygiene, trust in the venue, or even the quality of the drinks. Here, too, social media may come to the rescue. Consumers in Romania are among the most influenced by what they see online, with over three in four visiting a venue or purchasing a product in the On-Premise after encountering it on social platforms. For businesses, maintaining a strong social presence is therefore a top priority here, not merely an added bonus.
“Europe’s deep-rooted connection to the On-Premise remains incredibly resilient. Even as consumers go out less often, they’re choosing experiences that deliver real value – driving earlier dayparts, stronger food and drink occasions and rising demand for both premium and no/low options. To win, brands must pair continent-wide trends with hyper-local insight, because in Europe, nuance is the key to unlocking growth.”
George Argyropoulos- Managing Director, On-Premise, EMEA – NielsenIQ
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