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Dinner and no drinks: Restaurants are struggling as Americans drink less
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Traditionally a reliable revenue stream for restaurants, alcoholic drinks are down markedly – and the bottom line is, too.
PHOTO: TAMARA KENYON/NYTIMES
Meghan McCarron
- US restaurants face declining alcohol sales due to health awareness, generational shifts, and GLP-1 medications, impacting their revenue model.
- Some restaurants are adapting by offering appealing non-alcoholic options, although they may not fully compensate for lost alcohol profits.
- Generational differences affect drinking habits, with Gen Z drinking less and cost being a significant factor, though margaritas remain popular.
AI generated
NEW YORK – Mr Damon Wise opened his barbecue restaurant, Pineapple Express, in Montclair, New Jersey, with a traditional business plan. Forty per cent of the revenue would come from food sales, and 60 per cent would come from alcohol. A veteran of the New York City restaurant world who had operated restaurants in multiple states, he knew this was the magic ratio.
But over the past two years, that ratio started to break down.
