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In the last few years, drinking habits in the U.S. have shifted, and a ‘mindful drinking movement’ has taken off. The success of initiatives such as Dry January and Sober October have ushered in an era of so-called ‘sober curiosity’, with people taking a more considered approach to alcohol consumption.
Whereas non-drinkers used to have to settle for a soft drink on a night out, now there’s a huge variety of no/low-alcohol beverages on the market. These include alcohol-free drinks with an ABV (alcohol by volume) of 0.05% or less and low-alcohol drinks with an ABV of 1.2% or less. Forward-thinking restaurateurs are incorporating these options into their offerings to meet the growing demand and to capitalize on a long-term trend.
The rise of alcohol-free beverages
Alcohol-free beverages are popular with two growing demographics: people who don’t drink alcohol at all and those who drink it in moderation. According to the Pew Research Center, 38% of U.S. adults in 2023 said they abstain completely from alcohol, with young people leading the way: 41% of 18-34 year-olds say they consume no alcohol, compared to 34% of 35-54 year-olds.
Research has found that, among those who do drink alcohol, moderation has become an ingrained habit, rather than a passing fad. While younger adults are also driving this change, it’s occurring across all age groups as consumers increasingly take ownership of their wellness and mental health.
With these changes in consumer behavior, it’s not surprising that the no/low segment of the alcohol market is booming. While the market as a whole is in gentle decline, this segment is experiencing growth, with low- and no- alcohol product launches growing 11% over the past 5 years.
Demand has spurred innovation from both established beverage companies and new challenger brands, and there’s an ever-expanding range of alcohol substitutes on offer. There’s even a World Alcohol-Free Awards, with categories ranging from the familiar (wine, beer etc) to newer offerings like ‘functionals’ – drinks containing wellness-aligned ingredients.
How restaurants are adapting to alcohol-free trends
Unsurprisingly, the alcohol-free trend isn’t limited to at-home habits and is influencing restaurant goers’ behavior. It appears that ‘a bottle of wine with dinner’ is no longer the norm: In 2023, Americans consumed less wine. In fact, wine sales have shrunk for the third consecutive year, and spirit sales were flat.
So how can you make sure your restaurant is ready to offer a great dining experience to all visitors, whatever their drinking preference?
Menu innovations
It’s no longer enough to have a couple of basic mocktails tacked onto the end of your cocktail list. To truly serve your customers who are not drinking or just drinking less, it’s worth taking the time to develop a dedicated no/low-alcohol menu to rival your traditional drinks menu.
You could offer a tempting alcohol-free drink at every stage of the meal, including alcohol-free aperitifs, non-alcoholic wine pairings and alternative digestifs. When it comes to mocktails, why not create exciting new concoctions as well as virgin versions of the classics?
There are no hard-and-fast rules when it comes to mocktails (apart from being alcohol-free), so see this as your chance to get creative. You could lean into the wellness aspect by incorporating health-boosting ingredients like kombucha and echinacea. Or play around with your own theme that complements the type of food you offer. If you operate an Italian restaurant you may want to offer mocktails with flavors typically associated with traditional Italian cocktails or with ingredients that compliment your menu offerings.
Staff training
Once you’ve developed your menu of alcohol-free options, the next step is to get your staff on board. Soft drinks are still the preferred choice for customers who aren’t drinking alcohol, so there’s an opportunity to upsell your more sophisticated no/low-alcohol options. Your bartenders and wait staff can play a pivotal role in guiding customers through the menu and promoting these drinks.
The training for alcohol-free drinks should be as comprehensive as the training for their alcoholic counterparts. Ensure that staff know the ingredients, preparation methods and flavor profiles of each alcohol-free option. Give them the background on the production processes and encourage them to sample the drinks themselves, so they can speak genuinely to customers about the flavors and mouthfeel.
By investing in training, your staff will be able to present your no/low-alcohol options with the same enthusiasm and expertise as traditional wines and classic cocktails. Ultimately, they will be able to offer customers more choice and a more personalized dining experience, boosting customer satisfaction.
Pricing non-alcoholic drinks
Promoting no/low-alcohol drinks doesn’t just improve customer experience, it can also help increase your profitability. For example, if you can encourage a customer to swap out a soft drink for a low-ABV beer or cider, you’ll benefit from the higher profit margin on that order.
If you craft your mocktails with as much care as your cocktails, with quality ingredients and a little bit of theatre at the bar, you’ll likely find that customers are willing to pay a similar price. You can use our menu item cost calculation tool to check the profitability of your non-alcoholic creations.
With ‘sober socializing’ becoming ever more popular, it’s vital that restaurants offer a compelling range of no/low-alcohol options. Whether you’re just starting a restaurant or you’re well-established, it’s time to invest in your alcohol-free strategy, from your mocktail menu to staff training and pricing strategies. With the no/low-alcohol segment of the market forecast to keep growing and generating incremental revenue, you’ll be setting up your business to reap the rewards for years to come.
