Research from food & drink consultancy CGA Strategy shows that 90% of managed pubs currently include some level of steak offer on their menu, and that destination venues – pubs off the high street – are the heartland for steak sales. These outlets see £1 in every £5 spent on food going towards a steak course, compared to £1 in £13 for the average food pub.
Rump steak is the biggest seller, and penetration for the better cuts of beef is actually still relatively low given the size of this category. Fillet, for example are only on 50% of menus and Rib Eye even less so, on just 33% of menus.
Trading customers up
The revenue opportunity for trading customers up the steak quality ladder is significant. The average Sirloin sells for £2.85 more than Rump, with Rib Eye holding a whopping £5.82 price premium to the entry level Rump.
So how can customers be traded up? Across other food and drink categories, demystifying the ‘big ticket’ items leads to far better trial and engagement at the more expensive end of the spectrum. Menus detailing the different cuts and the different eating experience to be enjoyed by spending a bit more, do work. Old school, personal advocacy works even better!
Scott Elliott adds:
“The fact that 20% of food sales can be driven by just one element of the menu, and that only Rump & Sirloin are typically offered, would indicate a clear opportunity for growth. Any way of differentiating your offer from the competition is a good thing in this competitive market and, given the obvious love for the category, being known for ‘great steaks’ can only be good for business.
“Whilst not suitable for all, being standout in just one menu item really can work. A quick look at the outlets involved in the ‘better burger’ trend has shown how it is possible to create a real buzz about the offer, to drive serious footfall, and to offer consumers the perfect opportunity for treat spend”.
The Pub Food Report
This data has been produced as part of the Pub Food Report developed by food and drink consultancy firm CGA Strategy. The report findings are based on a combination of data sources, including daily sales data for over 5,000 managed pubs, 8 years of trended menu analysis from over 1,000 pubs and restaurants and total market estimations driven by anonymised sales data from a pool of over 69,000 licensed venues across 18 operating companies representing 70 retail brands. This massive and unique data set is all contextualised through market-leading on trade expertise.
CGA Strategy is the leading on trade consultancy with over twenty years’ experience of blending best in class quantitative analytics with exceptional market understanding, to create truly actionable insight.
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