The Value of Serving RTD Cocktails On-Premise

“Service efficiency,” “ease of use,” “consistent quality.” 

These are phrases that you often hear nowadays when the topic of on-premise RTDs is raised. While RTDs don’t fit the business model of every establishment, they are gradually finding a home in both upscale, craft cocktail bars as well as high-volume restaurants and other drinks venues. This applies to everything from canned to bottled cocktails.

Bryan Chenault, national sales director of Ventura Spirits, recalls that the brand’s RTDs originally “were developed with retail and direct-to-consumer in mind.” But Chenault and his team have been both delighted and surprised by the disparate collection of bars in Southern California that Ventura’s RTDs now call home.

The Gutter, a basement bowling alley in San Diego’s La Fayette hotel, powers through 15 or more cases of Ventura Spirits’ Pixie-cello Collins each month, while the Waterfront in Santa Monica features multiple products as part of their easy, quick-serve, batched cocktail philosophy. And The Grant, an intimate, upscale bar in the artsy part of Eagle Rock, brought in over 100 cases of product last year. 

According to Matthew Schmuck, The Grant's beverage director, “The Angeleno Spritz has been a runaway success for us. Guests find it a refreshing and interesting alternative to the classic Spritz. During our Happy Hour, it often rivals other cocktails 2:1.” Schmuck sees appeal for the bartenders too, since Ventura’s bottled cocktails are balanced in flavor and quick to serve.

Elements of efficiency and consistency are a familiar refrain from bars and restaurants that have incorporated RTDs into their programs. At Oak & Rye in Los Gatos, California, GM and Owner Bree Hanson acknowledges that “Slow & Low Rock and Rye [from Cooper Spirits Co.] helps streamline our process, allowing us to serve a craft bar quality cocktail quickly without sacrificing flavor. Having a reliable base like Slow & Low lets us maintain consistency, which is crucial, especially during peak hours. It reduces prep time and ingredient costs, ultimately boosting our serve efficiency and positively impacting our bottom line. Plus, our guests love it.”

Oak & Rye is just one of many Cooper Spirits accounts. The Slow & Low Rock & Rye Old-Fashioned, as well as the Coffee Old-Fashioned variation, are now sold in numerous bars, restaurants, and hotels. However, when the Rock & Rye was first released it was presented, much like Ventura Spirits did, as a consumer-facing option for easy-to-use, easy-to-transport craft cocktails. 

Group of friends toast with canned beverages

According to Chad Solomon, director of Innovation at Cooper Spirits Co., the company now emphasizes specific benefits when approaching on-premise accounts. The multiple value propositions are appealing. “[It's about] minimizing costs associated with prep, dry goods, and ingredient inventory, and storage," he says. "[It] maximizes service efficiency by minimizing opportunity costs related to building cocktails á la minute. The cans are an excellent one touch solution for on-premise accounts that offer grab & go.”

Solomon’s precise explanation of the benefits offered by RTDs illustrates exactly why they are gradually becoming more and more prevalent in on-premise locations. But it’s not just alcoholic canned and bottled cocktails that are gaining traction. With the movement toward more mindful drinking, non-alcoholic RTDs are also finding a home on menus. 

Krista Kemple, Northern California and Washington market manager for Aplós, has seen how “N/A RTDs are a game-changer in bars.” She finds that, “Bartenders love the easy serve that doesn’t slow them down, and patrons are thrilled to have a sophisticated, instantly available non-alcoholic option. Feedback from owner/operators has been fantastic — customers enjoy feeling included in the bar experience with a drink that’s crafted, functional, and ready to go."

Casements Bar in San Francisco is one of Aplós’ accounts. "Creating a consistent non-alcoholic cocktail can be tricky, especially with functional ingredients like those in Aplós that don’t see the same frequent use as alcohol-based spirits," says Gillian Fitzgerald of Casements Bar. "Balancing dilution and unique ingredient rotations is essential to keep the drink quality high and enjoyable for our guests.” She has even found that some guests alternate between an alcoholic cocktail and a non-alcoholic one like Aplós.

Along with the obvious reasons for carrying these products is the sometimes-overlooked customer engagement factor. Oak & Rye’s Bree Hanson says that the team allows “each cocktail to speak for itself, but our bartenders will recommend [Slow & Low] to guests who are looking for something unique or bold.” Even though the RTD is clearly featured on the menu, the bar staff has noticed that guests enjoy hearing the history of the original, pre-made version, which can be traced back to 1884. 

Fitzgerald of Casements shares a similar sentiment, "If a guest is unsure of what they want, we make it a point to talk through their preferences to help them discover the right drink for their mood, whether that’s a traditional cocktail or something functional and non-alcoholic."

Whether spotlighting alcoholic or non-alcoholic RTDs, the on-premise segment notices tangible benefits. Matthew Schmuck sums up the broad appeal of RTDs saying, “When building a menu, including something that is fast, cost effective, and delicious is a great way to add variety without a lot of extra inventory. Particularly for a high-volume event or establishment, getting drinks in hands is top priority. Being able to just open, pour, and garnish makes them attractive options for establishments and guests alike.” Even if, on paper, a canned drink costs more to make than a house-made cocktail, the benefits come from the time saved in preparation, while still offering a quality product. It’s a win-win for both the business and the guest."

 

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