News

World Cup is a windfall for Buffalo Wild Wings, other sports bars and restaurants

June 25, 2014

Thanks the FIFA World Cup, Buffalo Wild Wings is seeing a surge in business that's likely to continue until the tournament wraps up on July 13, according to a story in the Latin Post.

Soccer fans are flooding Buffalo Wild Wings restaurants to watch the matches, sometimes queuing up for hour-long waits and standing room only. From the story:

"Interestingly, our sources told us that regardless of what matches were being featured since the World Cup began, World Cup viewership in B-dubs [short for Buffalo Wild Wings] has consistently been very strong with most of the 'soccer powerhouse matches' including Mexico, Brazil and Germany especially well attended," said Bob Derrington, who covers Buffalo Wild Wings for Wunderlich Securities.

More than 25 million viewers tuned into the U.S.-Portugal game on ESPN and Spanish channel Univision, and fans are tuning in to watch other matches, too. Derrington said other sports bars and restaurants are also likely seeing a bump in business.

The crush to watch the World Cup at a local watering hole fits with consumer research, revealing an upward trend in on-premise alcohol sales.

On-premise alcohol sales increased 5.4 percent in 2013, and researchers expect sales to reach $105 billion by 2018.

More than half of all consumers surveyed by Mintel for their "On-premise Alcohol Consumption Trends" study reported that they had consumed an alcoholic drink away from home in the past month.

The fast casual segment of the restaurant industry is leading the way in responding to consumer demand for adult beverages, growing alcoholic beverage options offered on menus by 185 percent last year. Fine dining restaurants grew their selection by 27 percent, and quick service restaurants by 21 percent.

Key findings in Mintel's research include:

Millennials are the most likely generation to have consumed alcohol at a pub/brewery (27%) over the past month (vs 20% of overall sample and 18% of Baby Boomers).

Midwesterners are more likely than any other region to have visited a neighborhood bar in the past month (25% vs 20% overall and compared to 17% for the West Coast).

"On-premise drinking tends to be a more social occasion than drinking at home. Since over half of respondents drink while doing something else and an even higher number drink with family and friends, operators can create group activities and events to encourage socialization," says Bethany Wall, foodservice analyst at Mintel. "Going beyond viewing the game, operators can create large events in which customers are encouraged to sport their team's colors. They can host games and contests during half time, awarding prizes to individuals and groups to get consumers involved and boost interaction. Themed food and drink pairings can be created to match the cuisine of the countries or better yet, plates and tasting flights can offer components from each country as a duel."