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The On-Premise Consumer

December 2024

Workplace, College & University and Healthcare channel trends and consumer nuances.

The Size of On-Premise

On-premise channels account for $238 billion of foodservice sales—roughly a quarter of total foodservice. These channels have seen steady, positive movement following the COVID-19 pandemic.

Bar chart of Total Channel Retail Sales (Sales in $ Billions). The chart shows 2019-2023 broken into Lodging, Healthcare, Recreation, College & University, and Workplace. All channels reflect steady, positive growth since 2020.

Source: Technomic 2023 Foodservice Industry Wallchart (includes Travel & Leisure & Non Commercial)

Workplace

Food-only trips are much less likely to be sourced from the office—however a fighting force may come in the form of micro markets.

Similar to vending machines, micro markets are spaces that rely on self-serve kiosks where consumers can pick up grab-n-go items from shelves, or fridges and checkout digitally.

Benefits of on-premise occasion sourcing:

save on labor costs
keep workers on-site with more food options
create a wide assortment of grab-n-go beverages and food

Consider: 
Grab-n-go meals that stock easily in a micro market freezer.

Illustration of a scale highlighting the average spend: Workplace consumers will spend $7 at a vending machine, versus $20 at micro markets. •

Source: Hubert.ca, Increase Revenue and Reduce Labor Costs

College and University

Staff and faculty tend to get into a routine with food and beverage purchases—many rely on convenient, speedy choices and use this time to take a break, often at their desks.

Consider: 
Feature grab-n-go food and beverages that build breaks into everyday routines and pair well with desk work.

Chart highlighting the Occasion Motivations for College and University for students and staff/faculty: more convenient than other options (44% student, 58% staff/faculty), faster than other options (45% student, 54% staff/faculty), part of my normal routine (36% student, 49% staff/faculty), business or work meeting/class on campus (39% student, 22% staff/faculty), wanted to take a break (25% student, 39% staff/faculty). Bubble to the right of chart states that when asked where their food/beverage is consumed, 44% of staff/faculty said at their desk.

Source: On-Premise College & University October/November 2023

Healthcare

Convenience and speed are key drivers for healthcare. Patients and visitors want to relax and unwind—they’re more likely to be influenced by marketing than healthcare workers.

Consider: 
Advertising products in break rooms to bring awareness and visibility for healthcare workers.

Chart highlighting the Occasion Motivations for Healthcare for healthcare workers and visitor/patient: more convenient than other options (57% healthcare worker, 61% visitor/patient), faster than other options (55% healthcare worker, 58% visitor/patient), part of my normal routine (46% healthcare worker, 37% visitor/patient), wanted to relax/unwind (32% healthcare worker, 44% visitor/patient), wanted to take a break (39% healthcare worker, 42% visitor/patient). Bubble to the right of chart states that 42% of patients/visitors have seen marketing or promos for food & beverage, and 88% are more likely to purchase.

Source: On-Premise Healthcare October/November 2023

Takeaways for On-Premise

On-Premise channels account for almost 25% foodservice sales and have been growing steadily since the COVID-19 pandemic.
The On-Premise consumer is highly motivated by convenience, which can mean different things depending on the channel.
Consumers take into account the time it takes to order, receive their order, the foodservice location, and the availability of grab-n-go options.

Want to see more?

Discover more through the lens in the articles below.