Connecting people one drink at a time.
The average overall profit margin for a restaurant is only 6% however, alcohol sales have the highest profit margins. Specifically, of all three alcohol categories: spirits, beer and wine, spirits has the highest margin averaging over 80% and can be a springboard for higher profits. With 60% of establishments failing in the first year and 80% going out of business within five, establishments need to find new ways to grow profit margins to sustain success. The U.S. average for alcohol sales in restaurants hovers around 20% to 25% of overall revenue. Yet the highest earning restaurant in the U.S. generates alcohol sales of more than 50% of revenue, so you can see that alcohol is an engine that drives earning potential and profits to sustain success.
Distributors & Producers
Unlike most consumer categories, traditional brand engagement in the spirits industry cannot serve as a point-of-purchase. Handoff calls-to-action is a key touchpoint during the consumer journey and a large portion of brands do not provide either a retailer handoff or an establishment locator. This ultimately leads customers to a blind alley with no logical next step down the funnel. To be successful, brand engagement must effectively and seamlessly guide customers to points-of-purchase.
Mixologists, Bartenders & Entertainers
The endless parade of nights for mixologists and bartenders isn’t for everyone. Many reach a certain point in their career when the money isn’t cutting it as it can be hard to sustain over the years. To be successful, mixologists and bartenders must build an audience, which means not only putting in the effort to perfect their craft but letting people know about it. Building their personal brand only emerges one guest and one relationship at a time. Competing in competitions or winning awards can create a direct connection with influencers to increase reach and build a following. In addition, education is a core requirement for the profession and for those seeking long-term sustainability, need to continuously be learning. A mixologists or bartender should constantly be looking for opportunities to leverage their knowledge. In the new “gig economy”, cocktail catering or consulting services are a good side hustle and working independently as a freelancer can be a rewarding option that also supplements income and supports personal branding.
Although millennials consume less alcohol compared to baby boomers, they purchase it differently. They prefer higher-value products and are more selective and willing to try new things, posing a challenge to alcohol marketers who try to influence their drinking choices. It can be very frustrating when a customer is looking at a drink menu and all they see are limited details or options. In a world that revolves around decision-making, many people still don’t like to make decisions, especially when there are a great number of options presented on the menu. Educating and guiding customers on the beverages being offered is something today’s consumers expect.
Understanding millennial preferences by employing key mobile visual technologies will be indispensable to stay competitive. Millennials will continue to look for products through technology before they buy them, so establishments need to harness digital and social platforms in order to connect with patrons. Detailed product information, recommendations, ratings, pairings, tips, recipes, stories, and communities will be necessary to quench the thirst for information and ultimately purchasing decisions.
The distilled spirits industry generates nearly $30 billion annually in the U.S. with 70% of U.S. adults consuming an average of three drinks per week. Not only are adult consumers continuing to favor spirits over beer and wine, particularly among millennials, nearly 80% of adults own a smartphone. In the U.S., there are over one million establishments (restaurants, bars clubs, etc.), 2,800 distillers and over 600,000 mixologists and bartenders – and this does not include the international market.
socialmix employs a three-stakeholder model. For the patron, it’s finding the perfect drink for the specific moment. For the mixologist or bartender, it’s figuring out ways to gain recognition to grow their career. And for the establishment or brand, it’s adopting new strategies to increase revenue and improve margins.
- Mobile Experience – A mobile app for personalized drink recommendations and experiences based on interests, history & location.
- Engagement – A tool for establishments and brands to engage with targeted customers through behavioral and social experiences.
- Marketplace – A platform for freelance mixologists, bartenders and entertainers to compete for services, jobs & events.
- Community – A network for curators to promote their fluid excitements with a chance to win prizes.
socialmix has developed a new and disruptive engagement methodology that completely changes the status quo by leveraging intelligence and learning to provide a personalized experience - starting with the patron instead of ending with them:
- Personalized Experience – By leveraging intelligence and learning, present a personalized drink menu that meets the profile, chemistry, history and location of the patron for that moment.
- Enjoy – With statistical certainty.
We are excited about our team’s progress so far including validation at the NCB Show in Las Vegas, gaining over 100+ establishments interested in our launch, raising a friends and family round, building a prototype mobile app, adding key Advisors and most recently partnering with an application development firm.
To receive our Pitch Deck and schedule a 30 minute presentation of our detailed business model, please contact us for consideration.