Exclusive Lightspeed Data Shows How Bars and Restaurants can Seize on Thanksgiving Eve Trend ‘Drinksgiving’ to Drive Major Sales

Rhea-AI Summary

Lightspeed Commerce Inc. (NYSE | TSX: LSPD) reveals insights from its Advanced Insights module, showing a significant boost in business for bars and restaurants on Thanksgiving Eve, known as 'Drinksgiving.' The data indicates a doubling of business for bars compared to the previous week and a 39% growth in total transactions across all restaurant categories. Key highlights include a 156% increase in liquor orders, 85% increase in beer sales, 69% surge in cocktail orders, and 6% growth in wine sales. The report also suggests that staying open on Thanksgiving Day can be lucrative, with a 36% increase in transactions and 109% increase in total sales. The data debunks the myth of bad tippers on Thanksgiving Day, with an average dine-in tip percentage of 18%. However, the report warns about labor shortages and retention challenges, urging businesses to prepare for the holiday rush in December.

Positive

• None.

Negative

• Labor shortages and retention challenges pose a potential negative impact on staff morale and operational efficiency during the holiday season.

Unique data from Lightspeed’s Advanced Insights module, reveals that last year business doubled for bars compared to the previous week; total number of transactions across all restaurant categories grew by 39%

MONTREAL, Nov. 20, 2023 (GLOBE NEWSWIRE) --  Lightspeed Commerce Inc. (NYSE | TSX: LSPD) published a new report sharing insights on the potential sales boost available to American bars and restaurants who open on Thanksgiving Eve—otherwise known as ‘Drinksgiving.’ With Advanced Insights built directly into the Lightspeed Restaurant platform, the company is in a prime position to turn everyday data into actionable steps that help restaurants accelerate growth, provide the best customer experiences and become a go-to destination in their space.


The data, which is based on a sample of thousands of restaurants and bars powered by Lightspeed across the U.S., shows that business owners who are keen to increase their competitive edge should stock up on liquor, comfort foods and staffing levels for November 22, 2023 a.k.a. Drinksgiving—one of the biggest nights of the year for bars. Highlights include:

• Last year, liquor orders grew by 156% compared to the previous Wednesday. And “beer before wine” is more than an expression—beer sales went up by 85%, cocktail orders surged by 69% and wine saw a small bump at 6%
  
• Tequila sales in the Midwest in particular skyrocket on Drinksgiving, with sales of tequila increasing by 864%, compared to 246% on the West Coast. Meanwhile, in the Northeast their love of vodka proves strong, with a +427% increase in sales on Thanksgiving Eve. 

Kitchens across the U.S. should also prep for a surge, with Lightspeed’s Advanced Insights data showing that:

• The number of takeout orders increased by 21% on Thanksgiving Eve compared to the previous Wednesday, with a 16% increase for dine-in orders. 
• And for restaurants considering staying open on Thanksgiving Day itself, the data shows it can be lucrative. Restaurants who were open on the holiday saw a 36% increase in the number of transactions and 109% increase in total sales compared to the previous Thursday. Dine-in tip percentages for restaurants that stay open on Thanksgiving hold steady at around 18%.

Peter Dougherty, General Manager of Hospitality at Lightspeed Commerce, points out that beyond encouraging businesses to prep for Thanksgiving Eve, the data also debunks the industry myth that patrons who dine out on Thanksgiving Day are bad tippers. “This echoes what we’ve seen in the industry overall—that people are tipping their waitstaff more than in previous years,” notes Dougherty. “Added to the relative increase in sales, Thanksgiving could prove to be a profitable day for both servers and restaurants.”


Still, Dougherty warns, given labor shortages and retention challenges (75% jump in employee turnover year-over-year, according to the latest Lightspeed data report), staying open on the holiday “might not be the best for staff morale. And as we head into December, hospitality businesses will need all hands on deck to handle the holiday rush—especially on Saturday, December 9, which based on last year’s numbers could be the biggest sales night after New Year’s.”


For more insights into how restaurants and bars can jump on the Drinksgiving trend to increase sales, visit Lightspeed’s blog. 


Lightspeed powers the world’s best bars and restaurants, including: Boulod (New York), Alinea (Chicago), Recess (Chicago), Death & Co (Los Angeles), Mace (New York), Service Bar (Washington, DC), Collective Arts (Toronto), Joe Beef (Montreal), Cloakroom (Montreal), David Rocco Bar Aperitivo (Toronto), Cubitt House (London), Maybe Sammy (Sydney), Sunshine Brewery (Gisborne) and In den Ouden Vogelstruys (Maastricht).


Dive into the transformative features of Lightspeed Restaurant on our website, or to witness its powerful capabilities, see lightspeedhq.com/pos/restaurant.


*Methodology
Lightspeed analyzed transactions from thousands of hospitality businesses across North America powered by Lightspeed Restaurant. The analysis included diverse business categories such as bars, casual dining, upscale, fine dining venues and fast-casual businesses. The analysis compared various sales trends and menu items’ popularity between Wednesday November 23, 2022 and the Wednesday in the previous week.


About Lightspeed


Powering the businesses that are the backbone of the global economy, Lightspeed’s one-stop commerce platform helps merchants innovate to simplify, scale and provide exceptional customer experiences. Our cloud commerce solution transforms and unifies online and physical operations, multichannel sales, expansion to new locations, global payments, financial solutions and connection to supplier networks.

Founded in Montréal, Canada in 2005, Lightspeed is dual-listed on the New York Stock Exchange and Toronto Stock Exchange (NYSE | TSX: LSPD). With teams across North America, Europe and Asia Pacific, the company serves retail, hospitality and golf businesses in over 100 countries.


For more information, see lightspeedhq.com.


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Forward-Looking Statements

This news release may include forward-looking information and forward-looking statements within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as "will", "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of Lightspeed's management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, under "Risk Factors" in our most recent Annual Information Form, and in our other filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profiles on SEDAR at www.sedarplus.ca and on EDGAR at www.sec.gov. Readers are cautioned to consider these and other factors carefully when making decisions with respect to Lightspeed's subordinate voting shares and not to place undue reliance on forward-looking statements. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that Lightspeed considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by Lightspeed. Except as may be expressly required by applicable law, Lightspeed does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

For further information: Media Contacts: Canada: Victoria Baker, NKPR - victoriab@nkpr.net; USA: Jennifer Fugel, Newsmaker Group- jfugel@newsmakergroup.com; Lightspeed Media Relations - media@lightspeedhq.com; Investor Relations: Gus Papageorgiou, Lightspeed Investor Relations - investorrelations@lightspeedhq.com

Attachment

• Exclusive Lightspeed Data

What insights does Lightspeed's Advanced Insights module reveal about Thanksgiving Eve business?

The module shows a doubling of business for bars compared to the previous week and a 39% growth in total transactions across all restaurant categories.

What are the key highlights of the report?

The report highlights a significant increase in liquor, beer, cocktail, and wine sales, as well as the potential profitability of staying open on Thanksgiving Day.

What does the report debunk about Thanksgiving Day patrons?

The report debunks the myth of bad tippers on Thanksgiving Day, revealing an average dine-in tip percentage of 18%.

What challenges do businesses face during the holiday season according to the report?

The report warns about labor shortages, retention challenges, and the need to prepare for the holiday rush in December.