Gen Z drinks less than the generations before them, but the awkwardness they feel talking about alcohol is starting to transform where they go out, what they order, and how bars are built for them.
Younger consumers say they feel more awkward than older consumers when explaining why they aren’t drinking, new research from Heineken shows. While an increasing percentage of Americans feel comfortable declining an alcoholic drink with a simple “no thanks” (72%) or opting for a non-alcoholic alternative at parties (86%), only about half of Americans under 35 are comfortable drinking low or no-alcohol drinks in public.
They’re also more likely to expect someone will question them, and more likely to feel they need an excuse for not drinking — a paradox, given that Gen Z drinks less overall.
As younger adults pull back from drinking while still worrying about how to justify it, nightlife operators are rebuilding their menus, spaces, and social experiences around a generation that wants to go out without having to explain what’s in their glass.
Laura Fenton, a research associate at the University of Sheffield’s School of Medicine and Population Health who studies youth drinking behavior, said the tension around talking about drinking likely stems from social expectations. Even for Gen Z consumers, she said, “drinking together can be really important to friendship and to negotiating kind of a sense of belonging.”
A Danish study she cited found that young people feel like they have to give a good reason when they don’t drink or when they turn down alcohol with their friends, because “drinking is kind of a demonstration of reciprocity.”
“So if you’re going to not be on the same level, you have to have a good reason,” Fenton said.
Gen Z’s approach to alcohol is also shaped by a notable anxiety about health concerns and other risks associated with drinking, as well as an aversion to the high costs. With cocktails priced at $15 or more in most cities, many young adults opt for soda, coffee, or mocktails, perceiving them as offering better value than booze.
“They’re just a much more conscious consumer,” Marten Lodewijks, president of the beverage market data firm, IWSR, told Business Insider. “It’s not that they just don’t want to drink. They enjoy it, and they enjoy it as much as other generations. It’s just that they’re conscious that it’s not good for them, and so they don’t do it as frequently.”
Bars are revamping their strategies as Gen Z makes alcohol optional
Operators say the shift isn’t theoretical; they’re seeing it in real time.
Michelin-starred chef David Chang said in a November interview with TBPN talk-show hosts John Coogan and Jordi Hays that the decline in Gen Z’s drinking is a “real existential threat” to restaurants if they don’t pivot, given the industry’s already thin margins.
Sober bars are cropping up across major metropolitan areas — and one operator told Business Insider in January that every bar will have to expand its non-alcoholic offerings to stay competitive.
That change is already taking place: mocktails now appear on menus not as afterthoughts but as full-fledged offerings that look, feel, and cost like traditional cocktails, Stacy Molnar, a designer who has worked on restaurant and bar concepts for more than 30 years, told Business Insider.
“At the end of the day, it’s about revenue per seat,” said Molnar. “If someone wants to order a $15 mocktail instead of a $15 cocktail, great — it makes them feel included, and the operator still hits their numbers.”
Heineken USA’s Chief Corporate Affairs Officer, Anne de Graaf, told Business Insider that “Zebra Striping,” which is when people choose to alternate between alcohol and non-alcoholic drinks, is also on the rise.
But it’s not just the drink list that’s changing; it’s the overall bar experience.
Younger consumers want something to gather around when they go out, such as board games, trivia nights, themed environments, Instagrammable bathrooms, striking focal points, and distinctive décor.
In other words, Molnar said, they want atmosphere.
“They’re not going to a bar just to sit,” Molnar, who has two Gen Z kids of his own, said. “They want an activity. They want a vibe.”
From all-pink cafés trending on TikTok to bars built around entertainment, the industry is shifting away from alcohol as the main draw. Instead, it’s centering aesthetic experiences that make socializing feel low-stakes — and alcohol optional.
“This isn’t just about alcohol,” Fenton, the youth-drinking researcher, said. “It’s about what young adults want from social life. If you think about it, for young adults, drinking is a social behavior, and it’s largely geared toward forming and maintaining social bonds.”
Bars that succeed with younger customers aren’t just offering alcohol-free options; they’re de-emphasizing alcohol altogether. They’re transforming into multi-experience spaces where friends can hang out without feeling judged, pressured, or out of sync with the group, Molnar said.
So, what comes next? Expect to see more bars that are less about booze and more about belonging — and more spaces where saying “I’m not drinking tonight” doesn’t require a speech.
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