URGENT UPDATE: Michelin-starred chef David Chang has issued a stark warning to the restaurant industry: the decline in alcohol consumption among Gen Z represents a “real existential threat” to restaurants across the United States. This alarming trend could reshape dining experiences as we know them.
In a recent interview with TBPN talk-show hosts John Coogan and Jordi Hays, Chang highlighted that America’s youth is drinking significantly less alcohol than previous generations, with beverage sales plummeting by an average of 18%. “Kids just don’t drink anymore,” he lamented.
Chang’s concerns come as restaurants face a multitude of challenges, including rising costs and changing consumer behaviors. The typical restaurant sales ratio of 70% food to 30% beverages means that a drop in drink sales directly impacts profitability. “Something is going to give when you are down 18% on beverage sales,” he emphasized, citing industry data.
According to a recent Gallup survey conducted in August, the percentage of young adults identifying as drinkers fell by 9% between 2023 and 2025. This shift is attributed to various factors, including a growing focus on health and wellness and the rising costs of alcohol.
However, it’s not just about drinking less; Gen Z is transforming the nightlife scene. Many young adults are opting for communal dining experiences and supper clubs over traditional nightclubs, signaling a shift in social habits that could further challenge restaurants reliant on bar sales.
The implications of this trend are profound for an industry already grappling with a cash-strapped consumer base. “Consumer sentiment is in a very bad place,” said Phil Kafarakis, CEO of the International Foodservice Manufacturers Association (IFMA), in a statement to Business Insider. With rising ingredient and labor costs, restaurants are struggling to adapt to a fluctuating market.
As beverage sales decline, many establishments will be forced to raise food prices to offset losses. “I don’t have an answer,” Chang admitted. “Food needs to get more expensive, but that comes across as terrible… because it’s already expensive.”
Looking ahead, Kafarakis predicts a reckoning for the industry as we enter the new year. “This whole thing is really becoming a tsunami of sorts that really doesn’t look like it’s going to slow down,” he warned, suggesting that we may see more restaurant closures in the near future.
As this situation develops, the restaurant industry will need to find innovative solutions to survive in a landscape where Gen Z’s changing habits could dictate the future of dining out. The urgency of this crisis cannot be overstated, as it affects not only restaurant owners but also the broader economy and local communities reliant on these establishments.
Stay tuned for more updates on this unfolding story that could reshape the culinary landscape of America.