Generation Z (Gen Z), individuals born between 1997 and 2012, is reshaping the dining and drinking landscape with distinct preferences and behaviors. Understanding these trends is crucial for restaurant operators aiming to attract this demographic.

Why Gen Z is Drinking Less

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1. Health and Wellness Priorities

Gen Z is notably health-conscious, with a significant portion prioritizing their mental and physical well-being. This awareness has led to a decline in alcohol consumption among young adults. A 2023 Gallup survey highlighted that the share of adults under age 35 who say they ever drink dropped ten percentage points in two decades.

2. Financial Considerations

Economic factors play a role in Gen Z's drinking habits. Financial constraints, including student debt and the high cost of living, make regular alcohol consumption less feasible for many. Lawson Whiting, CEO of Brown-Forman, noted that younger consumers are increasingly cost-conscious, leading them to purchase smaller quantities of alcohol or abstain altogether.

3. The Social Media Factor

Social media platforms significantly influence Gen Z's dining decisions. Approximately 70% of Gen Zers utilize platforms like TikTok, Instagram, and YouTube to discover new food trends and establishments. This digital engagement emphasizes the need for restaurants to maintain a robust online presence, leveraging visually appealing content and engaging with influencers to attract this tech-savvy audience.

4. The Rise of Sober-Centric Socializing

Reflecting their reduced alcohol consumption, Gen Z has spurred the creation of sober-centric social venues. In cities like New York, alcohol-free bars and gaming hubs have emerged, offering environments where young adults can socialize without the presence of alcohol. These spaces provide alternatives such as board games and mocktails, aligning with the generation's preference for health-conscious and inclusive social settings.
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Emerging Drinking Trends in Restaurants and Bars

1. Non-Alcoholic and Low-ABV Options

With many Gen Z consumers reducing their alcohol intake, offering sophisticated, alcohol-free beverages is essential. According to a Drizly survey, 38% of Gen Z respondents are more open to trying non-alcoholic drinks than older age groups, highlighting a shift towards mindful drinking habits. Additionally, Statista reports that Gen Z consumers in the U.S. were the most likely to increase their consumption of non-alcoholic drinks in 2022 compared to the previous year. This growing demand has led to an expansion of non-alcoholic beers, craft mocktails, and functional wellness drinks on restaurant menus.

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2. Functional and Health-Focused Beverages

Gen Z exhibits a strong inclination towards health-conscious and sustainable dining options. A 2022 Statista survey found that 21% of Gen Z in the U.S. identify as vegan, compared to just 3% in 2017. Meanwhile, 72% of Gen Z consumers are willing to pay more for sustainable products, reflecting their prioritization of ethical sourcing and environmental responsibility. Restaurants can appeal to this audience by offering low-sugar, adaptogenic, and plant-based beverages, such as kombucha, turmeric lattes, and electrolyte-infused spritzers.

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3. Global and Cultural Drink Influences

Gen Z diners are adventurous and open to diverse culinary experiences, particularly regarding beverages. A report by AI Palette found that 64% of Gen Z consumers are more likely to experiment with new flavors and limited-edition products, emphasizing their desire for novelty and sensory-driven indulgence. Additionally, Innova Market Insights notes that Gen Z prioritizes bold, unexpected flavor combinations, leading to the rise of drinks infused with exotic ingredients like ube, hibiscus, and yuzu. Restaurants offering authentic, globally inspired beverages—such as Mexican agua frescas, Korean soju-based cocktails, and Japanese matcha lattes—can effectively attract this demographic.

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How Restaurants Can Adapt to Gen Z Drinking Trends

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1. Offer Craft Mocktails and Low-ABV Cocktails

Rather than simple soda-based mocktails, restaurants should craft high-quality, alcohol-free beverages that rival traditional cocktails. House-made syrups, fresh herbs, and sophisticated garnishes can elevate the experience. Examples include:

• Zero-Proof Mojitos – Made with fresh mint, lime, and sparkling water.

• Hibiscus Spritzers – A tangy and floral non-alcoholic alternative to rosé.

• Cold-Brew Espresso Martinis – An alcohol-free twist on the popular cocktail.

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2. Emphasize Sustainability and Customization

Gen Z values sustainability and personalization. Restaurants can incorporate this by:

• Offering house-made sodas with real fruit and natural sweeteners.

• Using upcycled ingredients, like citrus peels or herb stems, in cocktails to reduce waste.

• Creating DIY mocktail stations, allowing guests to mix their own drinks.

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3. Leverage Social Media and Aesthetic Appeal

As Gen Z discovers new dining experiences through social media, beverage presentation becomes essential. Brightly colored drinks, unique glassware, and intriguing flavor combinations inspire guests to take and share photos. Promoting user-generated content and collaborating with influencers can enhance a restaurant’s visibility.

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4. Pair Drinks with Experiential Dining

Since Gen Z values experiences over more than a night of drinking, combining innovative drinks with engaging dining options can be a win. Consider:

• Trivia or Game Nights with non-alcoholic drink specials.

• Food and Beverage Pairing Menus that include mocktail pairings.

• Interactive Cocktail Making events featuring both alcoholic and non-alcoholic options.

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Final Thoughts

Gen Z’s departure from heavy alcohol consumption is transforming the restaurant and bar industry. This generation prioritizes health-conscious, sustainable, and globally inspired drink options while favoring a more social, experience-driven approach to dining.

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