On-Premise Channel Strategy

The On-Premise landscape in 2025

By Matthew Crompton, Vice President – BevAl On-Premise | Originally published in Bar & Restaurant News

It’s no exaggeration to say that the American on-premise landscape is among the most diverse in the world. From the glitzy casinos of Las Vegas to the honky-tonk bars of Nashville, and the countless casual dining chains dotting suburban neighborhoods, there truly is something for everyone when it comes to eating and drinking away from home.

With a market this nuanced and vibrant, the challenge for anyone operating within it is knowing how to win: where, when, and with whom. One of the most common questions we hear is, “What should our On Premise strategy be?” But given the sheer variety of venues, the more relevant question is, “What should our On Premise Channel Strategy be?”

A Market In Growth

There is often a lot of doom and gloom written about on-premise sales performance, and in many cases, that concern is justified. However, long-time readers of this column will know there are still plenty of pockets of growth, and what many may not realize is that the overall market is actually expanding. As of August this year, TDLinx reports 303,810 traditional on-premise locations with an alcohol license across mainland USA, up 0.5% versus the previous year and even higher than pre-COVID levels in 2019. The “other on-premise” segment, which includes less traditional channels such as recreation and lodging, is seeing even stronger growth, up 2.8% over the same period.

Casual Dining Leads the Way

Not all on-premise locations are created equally, so where is the growth coming from? Casual dining dominates the channel, with over half of all locations (161,003) falling into this category. The segment is currently up 1.0%, and 82% of all LDA on-premise visitors say they typically visit a casual dining venue, making it the number one sub-channel across the market.

Neighborhood bars come in second and are experiencing even stronger growth, up 2.0%. These largely drink-led venues had been under pressure for years, impacted by widespread closures over the past decade. However, that trend is now reversing. Many of the remaining neighborhood bars have successfully adapted to new audiences and are thriving by focusing on what they do best.

Another area of the market showing strong growth—albeit from a much smaller base—is Quick Service Restaurant (QSR) venues, which are up 11.2%. These locations prioritize convenience and speed of service above all else and typically offer a limited beverage alcohol assortment. As a result, it is essential for suppliers to have the right products and tailored offerings to succeed in this space.

Late Night Changes

One area of the market that has faced challenges in recent years is nightclubs and the broader late-night economy. With many consumers opting to go out earlier and lingering effects from pandemic-related inactivity, nightclub venues are down 2.1% compared to a year ago.

However, there are signs of resilience. Fourteen percent of consumers say they regularly visit high-energy venues, and for those who do, the occasion and underlying needs have evolved over the past 12 months. This shift has given rise to the concept of “Vibe Dining,” a hospitality trend that blends upscale food and drink with a high-energy, immersive atmosphere. These venues often feature mood lighting, curated music, live entertainment, and visually striking décor designed to encourage guests to linger, socialize, and celebrate. It’s a segment worth watching as operators look for new ways to drive growth.

To Finish

As the American on-premise landscape continues to shift, it’s clear that growth is not evenly distributed across channels. While casual dining and neighborhood bars are thriving, and quick-service restaurants are gaining traction, other segments like nightclubs face ongoing challenges. Yet innovation is alive and well, with concepts like “Vibe Dining” redefining what a night out can look like. For suppliers and operators alike, success will depend on a deeper understanding of channel-specific dynamics, evolving consumer needs, and the occasions that drive behavior. The future of the on-premise lies not in a one-size-fits-all strategy, but in a channel-led approach that meets consumers where they are, and where they’re headed.

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