How The Drop in Alcohol Consumption is Raising the Price of Entrees and Concerts [View all]

The numbers are in and people of all ages are drinking less. The drop is most measurable among college age kids. One researcher said "compared to preceding generations, Generation Z may be the soberest generation yet." The biggest declines are seen among males 18 to 30YO but researchers do not agree on the reasons behind the drop. Pape et al. (2018: 99) suggests the drinking decline is ‘embedded in a general trend toward a slower passage into adulthood’ but Törrönen et al. (2019: 13) say the exact opposite -- highlighting "the early maturation of young people as more individualized, responsible, reflective, and adult-like actors than in earlier generations." The stigma associated with not drinking alcohol is quickly fading. Declining alcohol at social gatherings used to be taken as a sign that you were in recovery. It is now much more accepted and is part of trend that includes "Sober curious".

Others point to "hustle culture" where overworked young people seek to use what little free time they have more productively. They have a stronger emphasis on health and/or they have replaced alcohol with nicotine pouches such as Zyn.

Whatever the reasons for the decline, restaurants and concert venues have adjusted their pricing to make up for the losses in what used to be their biggest profit center. Restaurants and concert venues make the bulk of their profit on beverages. From $3 Coca-cola to $20 cocktails, beverages have been the core of the business model.

Restaurants fought the decline in a variety of ways since the 2008 worldwide economic collapse, one of which was to push spicier foods like Buffalo wings and Sriracha sauced everything. That had little impact so now they have somewhat surrendered to the decline and raised the price of everything else on the menu to make up for it.

Live concerts have taken a slightly different path to the same destination. Live Nation Entertainment now control about 80% of the business and they are vertically integrated. They have doubled the price of tickets but they also partnered with Liquid Death to sell cans of water for $14+ inside the venues.