ND1027114

Title: Restaurant Goers Opt for Tap

Description: Tap water servings at restaurants are growing at a rapid pace, while soft drink and coffee orders are on the decline.

Page Content: CHICAGO ? Beverage purchases at restaurants have been declining for the past five years, while tap water requests are growing at a swift pace, The NPD Group reports.

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According to NPD?s ?Beverages at Foodservice: Satisfying Our Thirst for Beverages? report, over the past five years, restaurant traffic has dipped 1%, while total beverage servings, excluding tap water, are down 2.7 billion servings. By contrast, tap water servings are up 2.8 billion servings since 2006.

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The report compiles data from a custom survey of 5,500 adults and reveals that beverage consumption declines are led by decreased demand for carbonated soft drinks and brewed coffee, which represent 49 percent of all beverage servings.

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?Although the economy and high unemployment are factors in tap water?s upswing and beverage servings declines, some beverages, like carbonated soft drinks were declining prior to the recession,? said Bonnie Riggs, NPD restaurant industry analyst and author of the report. ?A key learning from this report is that much of the declines in beverage servings are tied to the price/value relationship the consumer perceives.?

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The report notes that cost was one reason why consumers are abandoning soft drinks.

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?Some declining beverages will fare better as the economy recovers, but beverage providers will need to address consumers? concerns and poor value perceptions to stem further losses,? Riggs said. ?Not all beverages are on the decline. New flavors, addressing taste interests, preparing fresh/freshly made, and creating new versions of existing beverages are factors in the beverages that are growing.?

Content Subject: Research

Formatted Article Date: October 27, 2011

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