Why Americans Are Drinking Less, and How Bars Can Pivot and Adjust

Key Takeaways

• 54% of U.S. adults say they drink alcohol. That is a record low in Gallup's trend going back to 1939, and the second straight year at that level (Gallup, Aug. 2026).

• Health concerns are the main reason. 51% of Americans now say even one or two drinks a day is bad for your health, up from 27% in 2001 (Gallup, 2026).

• Guests still go out; they order differently. In CGA by NIQ's Q3 2025 research, 37% of guests said they spend more per visit than a year earlier and 14% said they spend less. Of the ones spending less, half said it was because they order fewer drinks (CGA by NIQ, Q3 2025).

• Non-alcoholic is the bright spot. NA beer sales at U.S. bars and restaurants grew 35.0% in dollars and 30.7% in volume over the 52 weeks ending July 12, 2025, though it is still under 1% of beer volume (CGA by NIQ).

• The answer is to change your mix, not cut prices. Price NA drinks like craft cocktails, sell food and experiences, open new dayparts, track spend per guest, and keep your inventory tight.

Drinking in America has dropped quickly, and in ways operators can measure. According to Gallup's annual Consumption Habits survey, the share of adults who drink fell from 62% in 2023 to 58% in 2024, then to 54% in 2025, and it stayed at 54% in 2026. That is the lowest reading since Gallup started asking in 1939 (Gallup).

For bars, nightclubs and restaurants, that's a real change, not the end. People are still going out. They're spending their money differently: fewer rounds, better drinks, more food, and more reasons to show up. This guide covers what's behind the decline and eight practical ways to adjust your menu, programming and operations for it.

Why Americans Are Drinking Less: The 6 Big Drivers

1. Health perception has flipped

This is the biggest change. In 2025, for the first time, a majority of Americans (53%) said moderate drinking is bad for your health; only 6% said it's good for you (Gallup, 2025). In 2026 the figure was 51%, still a majority. 86% say they've heard at least something about recent studies on drinking and long-term health, up from 79% in 2024 (Gallup, 2026).

People are thinking about this when they order. In CGA by NIQ's on-premise research, 47% of consumers said alcohol content factors into their drink choices (CGA by NIQ, BevAl State of the Nation 2025).

2. Young adults are leading the shift

Among adults 18–34, the drinking rate was 50% in 2026, down from 58% in 2023 (Gallup, 2026). They're also the most skeptical group: in 2025, 66% of 18- to 34-year-olds said moderate drinking is harmful, compared with 48% of adults 55 and older (Gallup, 2025).

Young adults still go out. CGA reported that 45% of 21- to 34-year-olds go out for a drink at least once a week, compared with 28% of all consumers (Brewbound, citing CGA by NIQ). They just want more from the night than a drink.

3. Drinkers are drinking less often

The decline isn't only people quitting. Gallup found that drinkers averaged 3.2 drinks in the past week in 2026, down from an average of 3.9 over the previous five readings. The share who say they sometimes drink too much fell to a record-low 13% (Gallup, 2026). For a bar, that means the same guest orders fewer rounds.

4. GLP-1 drugs: real, but don't overstate it

Weight-loss drugs like Ozempic and Wegovy are spreading quickly. A Cornell study using Numerator purchase data found that the share of U.S. households with at least one GLP-1 user rose from about 11% in late 2023 to more than 16% by mid-2024. Those households cut spending at fast-food restaurants, coffee shops and other limited-service eateries by about 8% (Cornell Chronicle).

On alcohol specifically, the evidence is less clear. One of the study's co-authors said their main estimate showed a 1.4% decline in alcohol purchases, with a confidence interval of –5% to +2.4%, so "we cannot definitively conclude that alcohol purchases decline" (Just Drinks via Yahoo Finance). Bottom line: GLP-1s are changing appetites and how often people eat out, which hits food-and-drink venues, but they aren't the main reason drinking is down.

5. Cannabis and THC drinks: a complement with an uncertain future

It's easy to blame cannabis, but Gallup found that marijuana use has been "fairly steady over the past four years" and "doesn't appear to be a factor in people choosing not to drink alcohol" (Gallup, 2025).

Hemp-derived THC beverages are another matter. NielsenIQ measured $239 million in U.S. retail THC beverage sales over the 52 weeks through April, up 135% from a year earlier (CNBC). The National Restaurant Association estimates a $1.6 billion opportunity for restaurant and bar operators (Nation's Restaurant News). However, a federal hemp redefinition passed in November 2025 limits finished products to 0.4 mg of total THC per container starting December 11, 2026, which would push most intoxicating hemp drinks out of the legal hemp category (Withum). Rules also vary by state. If you're thinking about THC drinks, talk to your attorney and your state regulator before you stock them.

6. Prices and tighter budgets

Drinks out cost more than they used to. The BLS Consumer Price Index for alcoholic beverages away from home rose about 2.6% from September 2025 to September 2026 and about 8.3% since September 2023 (calculated from BLS data via FRED, series CUUR0000SEFX). More than half of consumers (52%) told CGA they're worse off financially than four years ago, and 45% want more promotions or deals at bars and restaurants (CGA by NIQ). Operators are under pressure too: the National Restaurant Association reports that 42% of operators said their restaurant wasn't profitable last year (NRA, 2026 State of the Industry).

What Hasn't Changed: People Still Want to Go Out

Moderation is not the same as staying home. 71% of consumers say bars and restaurants offer an atmosphere they can't replicate at home, and 67% say venues play an important role in celebrating special moments (CGA by NIQ). The NRA says more than 7 in 10 consumers would use restaurants more often if they had more disposable income (NRA).

What guests want is a better reason to come out and a better drink when they do. That's what the next section is about.

The Old Model vs. the Pivot Model

Revenue lever	Old model (volume-driven)	Pivot model (value-driven)
Core metric	Drinks poured, bar ring	Spend per guest, visit frequency
Non-drinkers	A soda with a straw	A dedicated NA/low-ABV menu at real prices
Food	Afterthought, fryer basics	Shareables and food-led occasions
Reason to visit	Cheap specials, late-night rush	Events, programming, experiences
Hours	Nights and weekends	Day, brunch, early evening, late night
Drink strategy	Pour more, discount more	"Less but better," premium serves and presentation
Staffing	Fixed schedules	Scheduled to traffic data
Inventory	Big orders, overstock	Lean pars, fast restocking

8 Ways Bars and Restaurants Can Pivot and Adjust

1. Build an NA and low-ABV menu, and price it with craft respect

Non-alcoholic is now part of the regular drinks mix. NIQ reports adult non-alcoholic beer, wine and spirits grew 22% in off-premise dollar sales, more than 92% of NA buyers also buy alcohol, and in the on-premise channel NA cocktails rank just behind gin in popularity (NIQ, Non Alcohol report, Aug. 2025). Gallup found 17% of Americans substituted an NA drink for alcohol in the past year (Gallup, 2026).

How to do it:

• Give NA drinks their own section on the menu with creative names, not "mocktails" listed under sodas.

• Price them as crafted drinks. If a zero-proof drink takes the same labor, garnish and glass as a cocktail, charge for it.

• Make them look the same. Serve NA drinks in the same glassware, with the same fresh garnishes and straws, so a guest isn't marked as "not drinking."

• Build them from house mixers. Juices and syrups from your juice, soda and mixers stock make solid zero-proof bases. Stock NA beer through your regular beverage distributor.

2. Go food-forward

Guests who drink less still eat. Add shareable plates that hold a table longer, pair food with signature drinks (alcoholic or not), and promote food-led occasions like happy-hour bites and late-night menus. CGA's on-premise analysis noted that NA beer growth in chain venues may reflect NA "aligning with food-led occasions" (Brewbound). Make sure you have cups and lids, napkins and to-go supplies stocked for the food side of your business.

3. Program events that give people a reason to come

When the drink isn't the draw, the event is. Ideas include trivia, live music, DJ nights, watch parties, themed brunches, tastings (including zero-proof flights), and private bookings for birthdays and corporate groups. For bigger nights, wristbands and VIP supplies help with door control and bottle-service presentation, and bottled water by the case keeps a packed room hydrated.

4. Open the daytime and brunch daypart

If your venue only makes money after 9 PM, you're leaving room on the table. Brunch, weekend day parties, coffee-and-cocktail programs and early-evening "after work, home by eight" crowds suit guests who are moderating. Daytime menus use different supplies, such as citrus and herb garnishes, juice, and larger cups for spritzes and NA drinks, so plan your pars before launch.

5. Invest in experience and atmosphere

You can't replicate atmosphere at home, and 71% of guests say so (CGA by NIQ). Pay attention to lighting, sound, seating, clean restrooms and fast service. Small details add up: proper glassware instead of plastic where it's safe, a fresh garnish on every drink, LED bottle presentation for bottle service, and polished guest checks.

6. Premiumize: "drink less but better"

CGA found 67% of drinkers prefer one or two high-quality drinks over five value drinks (Brewbound, citing CGA by NIQ), and 46% say they're willing to pay extra for a better-quality drink (CGA by NIQ). Bartender recommendations influence 29% of guests who trade up (same source), so train your team to suggest the better pour.

A word of caution: CGA also counted 17.3% fewer premium bars year over year, while neighborhood bars grew 1.6% (CGA by NIQ, Q3 2025). Premium should mean better value and presentation, not just higher prices. Energy-drink cocktails and Red Bull serves are an easy way to offer a signature drink at a range of price points.

7. Track spend per guest, not just total sales

If drink counts fall but spend per guest holds, you're adapting. Track these weekly in your POS:

• Spend per guest (food + drinks + NA)

• NA and low-ABV share of drink sales

• Sales by daypart and event night

• Repeat visits (loyalty or card data)

Remember: 37% of guests told CGA they spend more per visit than a year earlier (CGA by NIQ). Find out who they are and what they order.

8. Tighten staffing and inventory discipline

With margins under pressure, waste hurts more. Schedule staff to your traffic data, cross-train bartenders on the NA menu, and set lean par levels for disposables, garnishes and mixers so cash isn't tied up in storage. That's easier when your supplier delivers same day with no minimums: order what you need this week instead of stockpiling for the month.

Common Mistakes to Avoid

• Treating NA as an afterthought. A soda gun pour and a crafted zero-proof cocktail sell very different experiences, and are priced very differently.

• Discounting your way out. Deep drink specials train guests to wait for discounts and erode margin.

• Overstocking for a "normal" year. Order based on current sales, not 2019 numbers.

• Ignoring the non-drinker in the group. Every group with one non-drinker needs one great option, or the whole table may pick another venue.

• Jumping into THC drinks without legal advice. Federal and state rules are changing fast.

How Barnes Supply Helps You Pivot

Barnes Supply is a full-service nightlife and hospitality supply company. We don't sell alcohol. We supply everything around the drink: garnishes, glassware, straws, disposable cups and lids, napkins, Red Bull and energy mixers, bottled water, wristbands and VIP supplies for events, and more in our full catalog.

We serve bars, nightclubs and restaurants across Atlanta/Athens, Tampa/St. Pete, Orlando and Nashville, and we're opening in Austin, Texas in Q1 2027.

Ready to rework your menu or launch a new event night? Call your SupplyGuy.- Same-day delivery. Order by 11 AM. Orders after 11 AM are subject to an emergency delivery fee. - No minimums. No contracts. - Email info@barnes.supply or contact us today.

Frequently Asked Questions

Why are Americans drinking less alcohol?

Mainly because of health concerns. Gallup found 51% of Americans now believe one or two drinks a day is bad for your health, and the share of adults who drink sits at a record-low 54% (Gallup). Tighter budgets, higher prices and, to a smaller and less certain degree, GLP-1 medications also play a part.

Is Gen Z really drinking less?

Yes, young adults are leading the trend. Gallup reports 50% of adults aged 18–34 drank in 2026, down from 58% in 2023, and about two-thirds of that age group said moderate drinking is harmful in 2025 (Gallup). Many still go out often; they're choosing experiences and better drinks over volume.

Are non-alcoholic drinks worth adding to a bar menu?

Yes. NA beer sales in U.S. bars and restaurants grew 35.0% in dollars over the 52 weeks ending July 2025 (CGA by NIQ), and more than 92% of NA buyers also buy alcohol (NIQ). NA drinks keep mixed groups at your bar longer.

Should bars sell THC beverages?

Only with legal advice. Demand has grown fast, but a federal rule taking effect December 11, 2026 caps hemp products at 0.4 mg of total THC per container, and state laws differ (Withum). Check with your attorney and state regulator first.

How can bars increase sales when guests drink less?

Raise spend per guest instead of drink count. Add a premium-priced NA menu, food-forward shareables, events and daytime hours, and invest in atmosphere. Track spend per guest weekly and keep inventory lean with a same-day supplier like Barnes Supply.

Sources

1. Gallup, "Americans' Drinking Remains at Record Low" (Aug. 20, 2026): https://news.gallup.com/poll/713534/americans-drinking-remains-record-low.aspx

2. Gallup, "U.S. Drinking Rate at New Low as Alcohol Concerns Surge" (Aug. 13, 2025): https://news.gallup.com/poll/693362/drinking-rate-new-low-alcohol-concerns-surge.aspx

3. CGA by NIQ, Q3 2025 On Premise Report (Brewbound Quarterly, hosted by Nombase): https://www.nombase.com/datahub/q3-2025-cga-by-niq-on-premise-report-consumer-behavior-category-performance-and-growth-outlook/download

4. CGA by NIQ, "The US On Premise: BevAl State of the Nation" (2025): https://nielseniq.com/global/en/wp-content/uploads/sites/4/2025/05/US-On-Premise-Report-BevAl-State-of-The-Nation-2025.pdf

5. NIQ, "Non Alcohol: A Billion Dollar Beverage" (Aug. 2025): https://nielseniq.com/wp-content/uploads/sites/4/2025/08/NIQ-BevAl-Non-Alcohol-Beer-Wine-and-Spirits-August-2025.pdf

6. Brewbound, "NIQ & CGA: 'Lean Into What's Working' Amid Moderation Trends" (Aug. 22, 2025): https://www.brewbound.com/news/niq-cga-lean-into-whats-working-amid-moderation-trends/

7. Brewbound, "3 Up 3 Down: NA On the Rise…" (May 29, 2025): https://www.brewbound.com/news/3-up-3-down-na-on-the-rise-across-off-and-on-premise-high-abv-losing-stea/

8. Cornell Chronicle, "Ozempic is changing the foods Americans buy" (Dec. 19, 2025): https://news.cornell.edu/stories/2025/12/ozempic-changing-foods-americans-buy

9. Just Drinks via Yahoo Finance, "GLP-1 drugs reduce US grocery spending by 6%, study claims" (Jan. 6, 2025): https://finance.yahoo.com/news/glp-1-drugs-reduce-us-130524134.html

10. CNBC, "THC drinks could soon be harder to find as Congress delays hemp ban again" (Sep. 4, 2026): https://www.cnbc.com/2026/09/04/thc-drinks-congress-hemp-ban.html

11. Nation's Restaurant News, "Federal hemp prohibition likely delayed to December" (Aug. 14, 2026): https://www.nrn.com/restaurant-operations/federal-hemp-prohibition-likely-delayed-to-december-as-industry-lobbies-for-regulation

12. Withum, "Federal Hemp Redefinition: What Hemp Beverage Operators Need to Know": https://www.withum.com/resources/federal-hemp-redefinition-what-hemp-beverage-operators-need-to-know/

13. U.S. BLS CPI-U, Alcoholic Beverages Away from Home (via FRED, CUUR0000SEFX): https://fred.stlouisfed.org/data/CUUR0000SEFX

14. National Restaurant Association, 2026 State of the Restaurant Industry press release (Feb. 12, 2026): https://restaurant.org/research-and-media/media/press-releases/persistent-cost-increases-and-enduring-demand-will-shape-the-restaurant-industry-in-2026/