Indulgence and traditional festive flavours are expected to be the order of the day again this December as pub, bar and restaurant visitors look to treat themselves despite the tough economy.
That’s not to say that a tough economy and squeezed household budgets won’t be a factor, however, and so a balance of ‘value and experience’ was highlighted as important for this year’s Christmas customers.
“We are optimistic that it can be a successful season across the trade after another challenging year,” said Niall Deveney of Dunns Food & Drinks.
“The cost-of-living continues to squeeze and consumers are becoming increasingly deliberate with their spending, prioritising exactly what they want to spend their money on.
“However, research this year has identified that eating and drinking out remain a top priority and Christmas remains the time of year when we are most willing to treat ourselves and catch up with colleagues, friends and family.”
That was reinforced by a similarly-optimistic Ryan McFarland at Drinksology Kirker Greer, who said he expects to see ‘a strong festive period overall’.
“The challenges of the past few years have made consumers more intentional about where they spend their money, but they’re still choosing to treat themselves, particularly around Christmas,” he said.
“For pubs and bars, that means focusing on quality and experience. Venues that deliver a memorable night out with great drinks, great service and atmosphere will see the rewards. We saw good momentum last year, and I expect that uplift to continue as people prioritise connection, celebration and small luxuries close to home.”
Nishant Sharma, founder of Edinburgh’s Rutland Square Spirits, said he was ‘cautiously optimistic’ about the upcoming festive season.
“Expect strong peaks on Fridays/Saturdays and tighter weekday trade,” said Sharma. “Groups are booking earlier and spending with intent on the night, but they’re value-conscious.
“Venues that bundle experiences (set menus, a welcome cocktail and a hot serve) should outperform last year.”
The economy, as well as a changing culture overall, means there are likely to be more factors at play than might have been the case in the past, said Steven Smith-Hay of Vault City.
“While people are more mindful of value, there seems to still be a real appetite for social occasions and quality experiences. There’s also a growing trend of moderation, which can mean cutting back or just being more selective.
“It’s definitely not as black and white as it once was.”
Pete Thornton of Franklin & Sons said squeezed household budgets have led customers to become ‘more selective about when and where they go out’.
“For operators, this means balancing value with experience, ensuring that every serve feels worth the price,” said Thornton.
Ultimately, the season is likely to see ‘winners and losers’, according to Dougal Sharp at Innis & Gunn.
“December is a time when people want to celebrate properly. They’ve worked hard all year and use the festive period to reconnect with friends and family,” he said.
“Outlets that offer genuine quality and a memorable experience will be the ones that win.”
Describing the festive season as ‘one of the most profitable trading periods’, C&C’s on-trade sales director for Scotland and Northern Ireland, Kenny Gray, said wine, and in particular sparkling wines such as Prosecco and French Crémant, are likely to prove popular with revellers, with red also expected to perform well.
C&C also expects spirits and liqueurs to be big business next month.
“Unsurprisingly, cream liqueurs like Baileys come out top with sales up 113% in the four weeks of Christmas 2024,” said Gray.
Beer is another big seller at Christmas, but Gray pointed out that December is also an important month for those cutting down on or avoiding alcohol altogether.
He said: “It may be surprising given it’s the most sociable time of the year, but December is also the biggest month for no and low drinks and with one in three Scottish bar and pub drinkers said to be cutting back on alcohol, operators need to be giving some thought to their non-alcoholic offering.”
Heineken UK’s on-trade director, Will Rice, agreed. He said that people reducing their alcohol consumption ‘is a consumer behaviour that we expect to continue into the Christmas period, with customers looking to balance healthy choices, and the increase in social drinking occasions’.
“Offering variety is key during the festive season, especially as more customers are choosing to cut back or explore alcohol-free options,” said Rice.
“In fact, 31% of people say they’ve left a venue early or felt disappointed due to a lack of no and low alcohol choices, and 40% will check what’s available before they even arrive.”
‘Flavour and indulgence’ are likely to be two of the most important factors in drinks choices this December, according to Thornton at Franklin & Sons.
And he pointed to ‘traditional winter spices like cinnamon, clove and nutmeg’ as being ‘still very much at the heart of festive flavours’.
“But there’s also a growing appetite for delicate floral notes that add a modern twist and create a more sophisticated festive palate,” said Thornton.
“Premium ginger ales, for example, pair extremely well with dark spirits like whisky and rum, while citrus-led tonics and botanical mixers lift lighter serves, such as gin spritzes and festive mocktails.
“Consumers are looking for festive drinks that lean into both indulgence and refinement, with mixers and garnishes that can elevate a simple serve into something special.”
