We often think of young adults as those who probably do the most partying — and with that, the most drinking of alcohol.
A cocktail at The Edison in Disney Springs
But Generation Z — which the U.S. Census designates as those born between 1997 and 2013 — is drinking less than previous generations. And that trend, which we have to assume delights health advocates and probably many parents, is concerning to many businesses.
A 2022 study by Drizly — an alcohol delivery platform owned by Uber — showed that 38% of Gen Z planned to drink more non-alcoholic drinks in 2022 than they had the year before. The reasons cited for this were mainly health. It all feeds into the “sober curious” movement — which is focused on mindful consumption of alcohol, having periods of non-drinking, and drinking less. If you’re heard about “Dry January” the past few years, that’s part of the sober curious movement.
The Edison
And while less drinking would be viewed by many as a good thing, it does have an effect on profits for many businesses. Restaurants typically make about 30% of their revenue from alcohol sales, according to Full Service Restaurant News. And with lower labor costs to pour a drink than to make a meal, and a longer shelf life for alcohol that reduces waste, the profit margin for a restaurant’s bar is often much higher than a restaurant’s kitchen.
A recent report in Billboard magazine said that smaller concert venues are starting to feel the effects of the different choices Gen Z is making when it comes to drinking. Concert venues often rely on alcohol sales to make a profit — hoping to “break even” on the price of the entertainment with ticket sales, and make profits on the night of the concert with bar sales. One concert venue in Arizona told Billboard that it is making 25% less on alcohol sales at shows that cater to Gen Z than at shows that attract older generations.
Drink lineup at Narcoossee’s
“One of the big trends we’re seeing is that Gen Z doesn’t drink as much,” said Dayna Frank, president/CEO of First Avenue Productions, told Billboard.
In addition to concert venues, this trend could be hurting profits at many restaurants — including those at Disney Parks. Every table service restaurant at Disney World offers beer and wine, with many offering cocktails and a full-service bar. You’ll also find limited alcoholic drinks at many quick-service establishments in Disney Parks and hotels.
Red Rum cocktail at The Edison in Disney Springs
So as consumption of alcohol trends downward, how will Disney make up those profits? Well, we are seeing lots of small price increases on food at Disney World. And while food prices are projected to rise about 6% in 2023, according to the U.S. Department of Agriculture, we could see additional price increases if alcohol sales drop, and because of higher labor costs for Disney.
But one trend may also help make up for any alcohol losses — mocktails. Drizly reported that non-alcoholic spirits sales were up 600% year over year in 2022, with non-alcoholic wine sales up 300%, and non-alcoholic beer sales up 200%. Disney has long offered non-alcoholic specialty drinks, and we’re seeing more be introduced with zero-proof spirits, specialty syrups and more complex flavors.
The Agave Garden zero-proof cocktail at Narcoossee’s
The recently reopened Narcoosee’s restaurant at Disney World features two zero-proof cocktails on its menu — crafted with a complexity that used to be reserved for alcoholic cocktails. The Agave Garden has Lyre’s Agave Reserva Spirit, Cold-pressed Lime Juice, Passionfruit-Papaya Green Tea, and Cucumber and sells for $11. And the Pink London Spritzer — Lyre’s Pink London Spirit, Grapefruit Soda, Pomegranate-Green Tea, Lime, and Mint — also sells for $11.
A Mother’s Day Luau at Morimoto Asia in Disney Springs featured two mocktails, dubbed “Hand-crafted Libations” on the menu, including the Tiki Tiki — with a “tiki blend” of juices, cherry blossom syrup, orgeat, and lime for $9.
Tiki Tiki
These drinks are priced higher than a soft drink, and just a few dollars less than a cocktail containing alcohol. As zero-proof cocktails continue to gain popularity, we can expect the introduction of more fancy non-alcoholic libations around Disney Parks and Resorts. Keep following DFB for the latest Disney food news!
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The post The Gen Z Trend That Could Decimate Disney Profits first appeared on the disney food blog.