Photograph of a woman behind a coffee counter

taking part in on-premise

MAY 2024

Grasping the importance of on-premise is crucial to attaining holistic results. 

How big is 
on-premise?

On-Premise plays a huge part in food and beverage consumption while we work, study, play and travel.

It’s $213 billion of total foodservice retail sales equivalent (RSE), which includes food, non-foods and all beverages.¹

Infographic showing the industries that make up total food and beverage consumption: Restaurants and bars (68.9%), Retailers (8%), Travel & Leisure (9.4%), and Non-Commercial (12.9%). The latter two categories are both on-premise industries.
Infographic showing two breakdowns of on-premise subchannels: Non-Commercial ($123 billion) and Travel & Leisure ($90 billion). The breakdown of Non-Commercial is: Military (5%), Corrections (4%), Healthcare (34%), Business/Industry (14%), Vending (24%), and Education (42%). The breakdown of Travel & Leisure is: Travel (13%), Caterers (11%), Amusement & Leisure (4%), and Lodging (52%).

How
on-premise is changing

Remote work and distance learning are affecting Non-Commercial On-Premise. 

27% of workers report working onsite 3-4 days a week.

48% of workers say they are motivated to work onsite by subsidized meals.²

Infographic showing traffic trends by subchannel based on time period (pre-covid 2019, 2020, 2021, 2022, and 2023. It is as follows: Healthcare had about 1.75 million for all time periods. College & University had 5 million pre-covid, then a sharp decline to 2.75 million in 2020, then a gradual year over year rise from there to 3.75 million in 2023. Business & Industry had 2.5 million pre-covid, then a decline to 1.25 million in 2020, then a gradual year over year rise from there to 2 million in 2023.
photograph of a hand tapping on a check out screen. Wearing a wedding ring, seems pensive.

micro markets and healthy options

More and more, consumers are looking for a quick, grab and go, contactless experience. Micro markets are convenience store-like locations with no cashier—offering a solution to operators from a labor and space perspective, while also providing a user-friendly experience that’s fast and easy.

Top performing food and drink products⁴:

  • Salty Snacks 
  • Confectionary Candy
  • Soft Drinks

As Micro markets continue to grow, studies⁵ also show a continued interest in healthy offerings that are unique and strike a chord in terms of crave-ability. When surveyed, consumers most expect to be drawn to innovative and healthy offerings moving forward.

KEY TAKEAWAYS

1. On-Premise is leading the way in Foodservice


In 2022, US Foodservice Industry retail sales were $958B, with $213B 
being On-Premise.

2. Remote work & distance learning have an impact


With more people working and learning at home after the pandemic, traffic recovery has been slow in certain channels.

3. Micro markets are growing

Consumers are looking for quick and easy experiences. Unattended retail will continue to gain traction and expand.

4. Healthy offerings

Interest in healthier options is growing—healthy meal solutions enable 
consumers to make smart decisions without “missing out”. ■

Sources: 1) Technomic Wallchart, Nov 2023. 2) On Premise Landscape Study 2023. 3) Kantar U.S. MONITOR 2021(Q2; Q1); 2022 (Q1). 4) Coca‑Cola® Micro Market Study 2021. 5) Technomic Multi-Client Business & Industry Study 2021

WANT TO SEE MORE?

Discover more through the lens in the articles below.