Food retailers are exploring ways to open wine bars and taprooms closed during the pandemic
March 26, 2021
Before the pandemic hit, wine bars and taprooms were a growing trend at upscale supermarkets, as retailers found a new business in offering craft beers, wine and snacks to customers in-store.
Large chains like Kroger, Whole Foods and Albertsons, as well as smaller operators like Mariano’s in Chicago (a division of Kroger) and Gelson’s Markets and Erewhon in Los Angeles found added value in these types of beverage offerings, not least of all creating a sense of community within the store.
But by the end of last March, in-store wine bars and taprooms were basically non-existent, forced to shut down due to COVID-19 challenges and safety and social distancing concerns.
Gelson’s, well known for its extensive wine selection, also enjoyed success from its wine bars prior to the pandemic. A spokesperson notes that the retailer is waiting for COVID positivity numbers to decrease before considering reopening those, and predicted that wouldn’t happen in 2021.
Conversely, Erewhon, which has six stores in the Los Angeles area complete with its famous tonic and juice bar, hasn’t stopped serving when open, and has even added some outdoor seating at two of its locations, and enforced social distancing measures at the others.
Both of those retailers operate in California, which has had some of the strictest restaurant lockdowns in the country, with most operators relegated to outdoor dining only.
Gelson's Markets in California is waiting for COVID positivity numbers to decrease before considering reopening those, and predicted that wouldn’t happen in 2021.
Mariano’s took a different tack with its popular Friday Happy Hours during lockdown by going virtual and adding live local music, allowing the 44-store Chicagoland retailer to maintain a connection with its customers during lockdown. Although many of its bars began reopening with social distancing protocols last summer, Mariano’s continues its virtual Happy Hours for customers who are not comfortable with the in-person events.
Supermarket advisor and design expert Rikki Landini, managing director at Sydney-based Landini Associates, which works globally with major supermarket brands including Aldi, Loblaws, Esselunga and SSG Food Market, is currently helping to design and roll out creative new concepts including innovative in-store wine bar and taproom models.
“Wine bars and taprooms offered people a chance to gather and to feel that their shopping experience was elevated into a social one,” Landini said. “From the grocer’s perspective, these offerings were a differentiating service that could help grow a customer base in competitive markets — and encourage customers to spend more in the store.”
Before the pandemic hit, wine bars and taprooms were a growing trend at upscale supermarkets, as retailers found a new business in offering craft beers, wine and snacks to customers in-store.
Additionally, for the retailer, the concept allowed the opportunity to showcase their food and beverage offerings at a higher margin than in the grocery department, while still providing a good value for the customer in a relaxed environment, which traditionally leads to increased sales.
Landini doesn’t think the trend will permanently disappear due to closures caused by the pandemic and, in fact, expects it will come roaring back by the fall.
“We’re seeing optimism on the long-term prospects for wine bars and taprooms, including takeout and outdoor settings in addition to the in-store trend,” she said. “In many ways, COVID has taught us to share better, and to live in the moment. So, these community-based experiences and ways to treat ourselves well on the grocery trip become even more valuable. By nature, we are social beings, and the feeling of isolation felt by many during the pandemic will undoubtedly lead to a desire for great connection as soon as we feel safe to do so.”
Josh Goodman, founder, and CEO of PourMyBeer, a self-pour beverage system with 7,000 taps in more than 270 locations around the world including Whole Foods, H Mart and other regional grocery stores, says projects started to die off last spring, but are beginning to get back on the schedule again.
“They are starting to pick up again and I believe that more grocery stores will see the need to provide that unique experience and update their decor or setup,” he said. “I remember getting texts from some of our grocery store customers showing me a packed taproom with the grocery store behind them. It brings customers and revenue there that wouldn’t have gone there otherwise.”
For instance, Goodman installed taps at the family-owned McLanahan’s Downtown Market in State College, Pa., and the site regularly had a packed house pre-pandemic. It’s the kind of revenue generator the store will obviously get back to when it can, he noted.
Many in the industry believe that a good way to reintroduce these offerings will be to highlight more local brands and get the community excited about those businesses close to home.
“We expect more taprooms and wine bars to feature localization, including regional brewers and vintners, as a way to connect to the community even more closely,” Landini said. “We’re active not only designing stores in North America but also in Asia, Australia and Europe, where some of the new trends are forming and where stores are already operating in a post-COVID mindset.”
One successful idea she’s seen has been bringing the wine bars and taprooms toward the front of the stores, making them a more prominent part of the experience.
Ryan Small, founder of the Beer and Wine Geek blog, wholeheartedly believes these will return when it’s safe—and in a big way.
“Firstly, there’s a lot of pent-up demand,” he said. “People have been cooped up for a while now and can’t wait to travel and go to restaurants again. Secondly, it’s something that worked very well for the stores. They’d be foolish to not try to bring it back.”
Still, he thinks it would be prudent not to rush things.
“You don’t want to ramp it up only to shut down again,” Small said. “Once we have a path ahead where you can realistically assume there won’t be any more lockdowns, then bars at grocery stores will certainly return.”
