The latest IBISWorld Pubs, Bars, and Nightclubs in Australia 2022 report reveals that the industry’s revenue in 2022 (calendar year) was more than $2 billion lower than pre-COVID levels.
Restoring the balance
The Australian Bureau of Statistics’ data indicates that Australians have not faced such cost-of-living pressures in over two decades.
With the food and beverage industry known for its pricing variances, choosing when and where to visit venues can present significant cost-saving opportunities while supporting local establishments during quieter periods.
To address these challenges and encourage patrons to return to their local pubs and bars, The Happiest Hour platform offers a range of strategies:
- Food and drink combo offers:
The platform has observed a growing demand for meal and drink combinations in the $20-$30 price range.
“One macro trend we’ve seen on our platform is increased demand for a meal and wine/beer in the $20-30 price range,” said Joonas Karppinen, CEO and Co-Founder of The Happiest Hour.
“The hypothesis here is that for someone to order food delivery and have a glass of wine at home, the cost is typically $20-30 per person, so if a venue can offer something at the same price point it’s enough to get people off the couch and into a venue with a mate. Adding a drink to the offer also gives the venue better control over the overall margin of the offer.”
- Cocktail happy hours:
“Historically, cocktails were the 3rd most searched drink item on our platform, but as of June 2023 cocktails are not only the #1 most searched drink happy hour, but the number 1 most searched offer of any sort.” said Karppinen.
“When we speak with our users, the general consensus is that $12 cocktails are considered great value. Furthermore, users are accepting of cocktail happy hours where only a select few cocktails are on happy hour, meaning venues can specify the cocktails that work best for them in terms of margin and time to make them.”
- TikTok micro-influencers:
TikTok influencers within the hospitality industry have witnessed a significant rise in volume and effectiveness. TikTok’s search engine-like functionality allows content to remain discoverable over time.
Venues targeting the 18-34 age bracket can benefit from collaborating with suitable TikTok influencers.
Identifying influencers who focus on specific niches, such as cocktails, and have a local following can yield superior results.