This text is an automatic translation from Русский. It was generated by AI and may contain inaccuracies.
Read original →The Bill Without the Booze
An analysis of the 42.4% drop in restaurant alcohol sales in Russia during the first half of the year. How steep markups are changing consumer behavior and forcing restaurants to rethink their business model.
Alcohol becomes the first item to cut back on
In January–June, sales of alcoholic beverages in the hotel, restaurant and catering (HoReCa) segment, excluding beer, cider, mead and similar drinks, declined by 42.4%, to 818,300 decaliters. Wine sales fell particularly sharply—down 44.8% to 361,000 decaliters. Sales of beverages with alcohol content above 9% decreased by 39.78%, to 447,300 decaliters.
At the same time, overall retail demand proved far more resilient. Alcohol sales in stores over the same period fell by just 0.65%. In other words, the main decline isn't in alcohol as a product, but in where people are buying it.
According to restaurant market data, the reason is primarily related to consumer habits. In the first half of the year, the number of checks at restaurants and bars across Russia fell by 4%, and in Moscow by 11%. People have been visiting establishments less frequently and are more cautious about spending during such visits.
Meanwhile, the average check continued to grow: in Russia it increased by 8% to 3,200 rubles, and in Moscow by 6% to 4,500 rubles. But a higher check total doesn't mean guests are spending more across all categories. On the contrary, alcohol is taking up less and less of the bill. Its share over the year dropped from 41% to 37% across Russia and from 37% to 32% in Moscow.
It's precisely this shift in spending structure, rather than simply a drop in visitor numbers, that's becoming the key signal for the restaurant market. Guests are still willing to pay for a restaurant visit, but they're choosing ever more carefully what exactly to spend their money on.
Restaurant markups become more noticeable
Alcohol turns out to be a convenient item to economize on also because the difference between its cost in a store versus a restaurant is particularly striking. According to estimates from market participants, restaurants can set markups on alcohol at 200–300%.
At these price levels, a bottle of wine or spirits can significantly inflate the final bill. When diners are trying to stay within a certain budget, it turns out to be easier to skip drinks than to forgo a main course. As a result, restaurant alcohol shifts from being a routine part of the order to a purchase that can be postponed or eliminated entirely.