With rugby season in full swing, now is the time to leverage New Zealand’s massive sports culture to drive customers into your on-premise venue. There are, of course, many pubs dedicated to sports-loving fans but there is an opportunity for your less sports-centric venues to lean into sports culture. It might seem pretty simple – just change the channel on the TV or big screen and you’re pleasing customers. But it’s much more than that, it’s an opportunity to increase both foot traffic into your bar, plus dwell time (aka the length of time people stay) and, importantly, drinks sales.
According to CGA by NIQ, the global on-premise sporting occasion is increasing share (just behind business-led occasions); buoyed by large-scale events. The simple fact is that sports bring people together. Stats show that over half of the top 10 sales days for drinks in the on-premise sector have coincided with high-profile sporting events. Between now and the end of the year, there are 13 All Blacks games alone that are still to be played. So how can you leverage these sporting events to drive customer engagement?
Target the non-traditional audience
The traditional “sports bar” conjures images of loud men in rugby jerseys swigging beer and yelling at the ref on the big screen. And while there’s nothing inherently wrong with this picture, it’s not exactly an environment that screams “family” or “female-friendly”. According to CGA by NIQ, any research the company has ever done on the sports occasion has revealed the number one concern of consumers to be safety – specifically for female customers. And large numbers of people in small spaces can be intimidating.
“While an opportunity exists for high-tempo, high-volume drinking during sports, [there is] a secondary opportunity for fewer but better drinks in a lower-tempo, safe and unintimidating atmosphere,” says Charlie Mitchell, CGA Research & Insight Director. Smaller, more intimate venues can therefore grab the opportunity to appeal to the non-traditional audience, offering a family and female-friendly environment, while still capitalising on a sporting event.
Think outside the big drawcards
While All Blacks and Warriors games are a big draw card for the on-premise to attract customers, try expanding your offering to regional and women’s sports.
Regional events
Showing regional sporting events, such as the NPC, Super Rugby or ANZ Premiership (netball) signals that your venue supports the local community which, in turn, builds customer loyalty. Regional bars that show regional sports become gathering places for fostering community pride.
Women’s sports
Research from CGA by NIQ shows that women’s sports are increasingly popular in pubs and bars amongst operators and consumers alike. Screening women’s games – such as the White Ferns, Silver Ferns or Black Sticks – provides an opportunity to draw in a broader range of customer.
Utilise pay-per-view
While rugby and league dominates at this time of year, don’t overlook basketball, football (especially during the World Cup), boxing, UFC and AFL. Broadening your sporting scope brings in diverse crowds and fills gaps between major rugby and league events. For this (and all sporting events) you will need to obtain broadcasting rights from Sky Sport (skybusiness.co.nz/pubs-clubs), or other pay-per-view platforms. Some residential streaming platforms, such as Netflix, are starting to enter the commercial space in overseas markets – so watch out for these in the coming months.
Look beyond beer
According to CGA by NIQ’s Charlie Mitchell, “Even though spend per head and dwell time shoot through the roof when fans visit the on-premise to watch sport, there are also missed goal-scoring chances. Any sales increases are skewed towards beer and cider rather than higher-margin spirits, and cocktails.”
A report from the Spirits New Zealand Market Context Distilled Spirits Aotearoa Conference 2024 shows that the most popular alcohol categories in the New Zealand on-premise are:
- Beer – 37%
- Wine – 33%
- Cocktails – 28%
- Spirits (including with a mixer, neat, or as a shot) – 25%
- RTDs – 20%
Beer-drinking and sports-watching may appear to go hand-in-hand (the same report shows that live sport is the main reason beer drinkers go out for food and drinks) but bars can combat the beer buzz by working with wine, spirits and RTD suppliers to target consumers effectively through well-executed activations.
Encourage bartenders to get creative with limited edition game-themed cocktails, offer group drinks specials such as pitchers of cocktails, or tempt consumers with one final drink after the event has finished. Data shows that customers are more likely to trade up to a premium spirit if they’re celebrating a team’s win (or even if they’re commiserating defeat).
Work with premium spirits brands to push a bespoke cocktail menu or premium RTD selection with a higher price point than beer. One-time offers of speciality drinks or group discounts can be talking points for your customer, while also boosting average spend.
Pick popular brands
Research data shows that consumers are driven not only by price, but also by brand security and quality. Utilise your venue’s sales history to establish which brands consistently drive revenue, and ensure they are fully stocked behind the bar. This includes beer and cider, wine, RTDs and premium spirits.
Note any liquor brand partners to the sporting event and feature them prominently. According to research from CGA by NIQ, brand partnerships have been proven to influence drinks choices during matches, with almost a third of consumers saying they’re more likely to drink a brand if it’s the official drinks sponsor.
Build long-term loyalty
Research from the Harvard Business Review shows that it can be at least five times more cost-effective to retain existing customers than to attract new ones. It’s therefore important to maintain consistent communication with customers following a successful game-day event.
The Spirits New Zealand Market Context Distilled Spirits Aotearoa Report shows that food deals & promotions and drink deals & promotions make up 53% of the reasons customers would go out to the on-premise more than they usually do.
Use your CRM (Customer Relationship Management) system to send exclusive offers and a round-up of upcoming sporting events. Thank loyal customers with loyalty points and offer bonus points for game-day bookings (or bonus drinks for large bookings), or food and drinks discounts on upcoming game days.
For the on-premise, sport represents a golden opportunity to turn passive viewing into active spending. With a strategic preparation and planning, your venue can become the go-to match day venue in your area.
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