It can be tempting in our fast-paced society to put little stock in trends. Every day there is a new TikTok dance, a new favorite song—and it seems what is trending in the restaurant industry moves in and out just as quickly. There are some staples to good business that will always be true: great customer service, careful menu curation, an inviting atmosphere that draws guests in. And there are some trends, when they are greatly impacting the bottom line, that are worth noting.
For example: alcohol sales are down. That’s not common news in the restaurant world. “Alcohol sales for big chains are in the hundreds of millions on an annual basis, according to Technomic data,” writes Nations Restaurant News (NRN) recently. But “according to a new Gallup poll, 54% of American adults said they consume alcohol, which is the lowest percentage in the 90 years of the poll.”
And believe it or not, there is more than one factor driving down the sale of alcohol.
The primary source: Gen Z. The younger generations have been opting out of alcohol altogether—and they’re calling out the older generations for their alcohol use. NRN reports, “According to a new Harris Poll run in partnership with eMarketer, millennials (50%) and Gen X (40%) consumers are much more likely than Gen Z (25%) to name an alcoholic drink as their to-go restaurant beverage.”
There are hints that this trend could be shifting back, and many news outlets are reporting that Gen Z drinking is on the rise as the generation ages. But could this be enough to turn the tide of declining alcohol sales?
Perhaps not. Research has shown that GenZ isn’t the only group skipping the cocktail on their dinner ticket. Generally, consumers are drinking less in an effort to manage their dining out budgets, with food costs skyrocketing.
For those not as concerned with financial health, it is physical well-being that might be influencing their decision to drink or not drink. “In January, for instance, former U.S. surgeon general Vivek Murthy issued an advisory sharing how alcohol increases risks of cancer and calling for a new health warning on alcoholic beverages,” NRN writes. Restauranteurs believe this is affecting alcohol sales.
Many restaurants are considering their options, like new efforts put into mocktail offerings on the menu. Utilizing many of the same ingredients used in alcoholic drinks, mocktails are a creative way to respond to a trend impacting ticket sales.
Richard Weil, principal and owner of National Restaurant Consultants notes, “Depending on the segment of the food service and hospitality industry that operators work in, these trends can be managed to offset sales revenues, margins, and profits.” He adds, “Training in respectful communication to upsell alternatives to alcohol sales is important. Establish your guests’ needs and wants and respond accordingly.”