With summer nearing its end, on- and off-premise operators are turning their attention to the next big thing to help drive beer sales: Oktoberfest. And for a growing number of operators, the German celebration is proving to be a good traffic builder while lifting beer margins and leaving customers with a fun experience.
Oktoberfest events have been growing in number in recent years, both at restaurants and retail stores. “More and more, accounts and consumers see the fun and appeal of Oktoberfest celebrations,” says Nick Weiland, brand director for Shiner beer at the Gambrinus Co., which markets a seasonal Oktoberfest brew. “We’ve seen more opportunity to do promotions at bars and restaurants than in the past.”
Steve Hauser, CEO of Paulaner USA, importer of Paulaner and Hacker-Pschorr Oktoberfest brews—which have long been sanctioned to be poured at the Munich celebration—adds that the emergence of beer halls and taprooms in the U.S. is helping to popularize the occasion. “Oktoberfest events create a sense of community while celebrating a tradition,” Hauser explains, and the inclusion of German Oktoberfest beers at the events provides for “a more authentic experience.”
Recent research from the hospitality engagement platform Union confirms that on-premise Oktoberfest celebrations can create a big sales opportunity. Authentic Oktoberfest beers from Germany, for example, generally command a higher price than other beers, Union found, driving up ticket averages. “Our data shows that consumers actively seek out Oktoberfest beers and are willing to pay a premium for them,” says CMO Layne Cox. “Oktoberfest is a golden opportunity for bar owners to boost sales and create a memorable experience for customers.”
The Munich festival dates back to 1810 and draws revelers from around the world for a two-week period that lasts from roughly mid-September until early October. German-themed restaurants in the U.S. have long honored the occasion by throwing their own events, often featuring traditional food, music, and of course, beer. Urban German in Portland, Oregon, for example, hosts a day-long Oktoberfest celebration featuring live bands and a wider assortment of German cuisine than typically available. Owner David Gluth says that even though “it’s Oktoberfest year-round here,” customers still turn out for the special celebration. With draft beers like Paulaner and Weinstephaner Oktoberfest ($8 a 16-ounce pint), “we sell tremendously more beer during our Oktoberfest than any other day,” Gluth notes.
But it’s not just German-themed accounts that host Oktoberfest celebrations and pour the authentic brews. “Our data shows that of the top-selling venues of Oktoberfest beers, only a few are German pubs,” says Cox. Indeed, many of the bars capitalizing on the fest include Irish and British pubs, as well as sports bars, she notes. New York’s Loreley—a “modern-day beer garden,” according to owner Doug Jacobson—has hosted an Oktoberfest celebration every year since opening in 2003. The event has become so popular that the venue now stretches out its Oktoberfest celebration to last from mid-September through the entire month of October. Food offerings include sausages and pretzels, while most of the 12 draft beers poured are German, such as Spaten and Hofbrau Oktoberfest brews ($8-$12 a half liter). Jacobson estimates that some 2,500 liters of beer are poured each week during Loreley’s Oktoberfest celebration.
Oktoberfest beers are also a draw for off-premise accounts. “Oktoberfest as a style has always been popular but it’s really taken off over the past few years as the younger crowd has gotten more into the style and lager in general,” says Adam Wolloch, director of purchasing at Half Time Beverage store in Poughkeepsie, New York. The search for the seasonal beers brings customers in, the retailer notes, and while there, “they often find more than just what they were looking for originally.” Beers from Hofbrau, Ayinger, and Paulaner ($14-$22 a 6-pack of 12-ounce bottles) are among the Oktoberfest brews Half Time stocks.
The season for Oktoberfest beers and events is upon us. “By offering these brews and crafting engaging events, bar owners can foster a sense of community, and attract new faces to their establishments,” Union’s Cox says.