Gen Z’s monthly dining and drinking expenditure averages €122
Fourteen percent of Gen Z adults say they are more likely to buy a drink because of its ‘Instagrammability (Photo by Helena Lopes via Pexels)
Gen Z consumers are some of the most frequent visitors to Ireland’s pubs, bars and restaurants. However, younger adults have been affected more by the cost-of-living crisis than older consumers. Gen Z spends an average of €122 a month on eating and drinking out, €20 less than Ireland’s average of €144.
With their spending under pressure, they need to be engaged with the right combination of value, range and visual appeal.
These are among the insights from CGA by NIQ’s latest OPUS research into people’s engagement with the on premise, which helps suppliers unlock extra spend and build brand loyalty. The survey shows a third (33%) of adults aged 18-24 go out for a drink at least once a week, nine percentage points more than the 24% average among all consumers.
With disposable incomes under pressure, suppliers and venues need to offer all guests good value for money, but there are many more ways to attract Gen Z. Three in 10 (30%) of these consumers say the range of drinks is an important consideration, 11 percentage points more than average. While 25% are attracted by drinks promotions, an over-indexing of nine percentage points. Young adults are also more likely to be attracted by music, and less likely to be influenced by factors like the quality of food and service.
CGA’s OPUS research also reveals more insights into Gen Z behaviours, including:
- Gen Z are 16 and nine percentage points more likely than average to use these channels.
- Nearly half (47%) of Gen Z drink cocktails while out, and nearly as many (44%) choose spirits—an over-indexing of 12 and seven percentage points respectively.
- Half (51%) of Gen Z consumers say they drink both familiar and new drinks or brands, three percentage points more than average.
- One in seven (14%) Gen Z adults say they are more likely to buy a drink because of its ‘Instagrammability’ than they were a year ago, more than double the average of 6%. The same proportion (14%) are also now more likely to pick a brand because it’s trendy.
Sian Brennan, client director, CGA Ireland, said: “Gen Z are a crucial target market, especially in late-night channels and the spirits category. They are at a stage of their lives where they are ready to begin brand and venue loyalty and share their activities widely among their friends and on social media, creating a powerful and organic form of marketing.
“Winning their spend isn’t easy at a time of rising costs, so it’s vital to understand their preferences and the right levers to pull to engage them. Suppliers that invest in their Gen Z knowledge and engagement strategies will reap the rewards—not just now but for many years to come.”
