Why QSRs should rethink their hot beverage menu in 2024
More consumers are willing to spend more on hot beverages in the next 12 months.
Improving the quality of hot beverages should be part of QSRs strategies in the next 12 months as more consumers say they are willing to pay extra for better quality hot drinks, The Hot Beverages Spotlight Report by CGA by NIQ revealed.
The report shows that many on-premise visitors are happy to spend more money on hot beverages in 2024 but only if the quality and value are right.
Research reveals that over a quarter (28%) of consumers expect to spend more on hot beverages in the next 12 months. 54% say they will pay extra for better quality drinks, a figure that rises to 62% for adults aged 18 to 34. The report also said that there is a particularly strong appetite for trading up in coffee, where the quality of beans has become integral to marketing campaigns.
“Hot beverages are an increasingly valuable part of on-premise drinks menus and they can unlock incremental sales in new day-parts. But with competition so fierce and consumers more knowledgeable about their drinks than ever, it’s crucial to understand exactly where, when and why these drinks are bought. With spending likely to fluctuate widely between premium and value offerings, crafting the right ranges and hitting the pricing sweet spots will be the keys to success in 2024,” Andy Hodgson, CGA by NIQ’s senior business development manager, said.