Gen Z Is Not Killing Restaurants and Bars

Busting the myth that “Gen Z is killing bars and restaurants,” new data suggests they actually have a significantly higher incidence of going out to eat and drink across all on-premise segments when compared to other demographics. 

“Gen Z is driving important metrics that signal a return to growth for the restaurant industry, which is good news for us all,” said Brandy Rand,Vice President, Hospitality Group at Questex, which released the new proprietary report through a partnership with Datassential ahead of the 2026 Bar & Restaurant Expo. “The oldest Gen Z reaches 27 this year and the data shows that far from being the generation that kills bars and restaurants, it could be the one that saves it.”

The Misunderstood Generation Saving the Restaurant Industry

Rand said the widespread "doom-mongering" regarding Gen Z's habits is wrong, characterizing them as a "misunderstood generation."

“We hear statements like ‘they don’t like to socialize in real life,’ ‘they don’t drink,’ ‘they’re not prepared to pay for meals out.’ Yes, they are behaving differently than those that have gone before but they mostly came of age in an era of social lockdown.”

Contrary to the stereotypes, the data shows Gen Z order more alcohol and better-quality drinks when going out. They embrace treat culture spending more on themselves than older consumers and don’t see price as a barrier when choosing where to go out. The motivation for Gen Z to go out to eat are different, for them it’s often because it’s faster or easier than cooking. For older consumers (45-60) it’s because they are tired and don’t want to cook, whereas for 60+ it’s for that social connection.

Key findings from the report include:

• The top reason people go out to eat and drink is to treat themselves (53 percent), followed by the desire to socialize (45 percent). 

• Despite tighter discretionary spending, splurging on food and beverages at a restaurant or quick-service venue remains a priority for many consumers across all genders, ages and income levels.

• In the current economic environment, 42 percent also cite promotions or deals as an important criterion for selecting where to go out.

What Drives Dining Decisions?

When selecting where to go out, all consumers cite quality, price and location convenience as the top three factors, but price is less important to Gen Z than other cohorts, said Rand.

“Gen Z are making decisions on where to dine based on social media content, so if your venue is not hugely visible on social media then they likely are not seeing it as a desirable spot, and it will be a barrier to Gen Z finding you,” said Rand. “ It’s important to leverage online/social media to generate interest. Update your online presence frequently and be sure to mention any special promotions to keep your presence fresh.

Gen Z is also drawn to specific venues based on the adult beverage aspects: happy hour, beverage quality, knowledgeable bartenders, as well as fast service, Rand added. 

“Younger consumers in particular look for cool experiences away from home, and food and beverage offerings are an important factor when choosing entertainment venues. Even when consumers order alcoholic drinks, they are likely to also have a non-alcoholic beverage. Younger people are the biggest consumers of alcohol away from home and have shown increased interest in the quality of beverage options.”

Operators should make sure their beverage program caters to this demographic with menus that showcase great beer and cocktail selections as well as recommend alcoholic and non-alcoholic beverages that pair with food items, Rand added.

Faster service will result in higher spend for the Gen Z guest, said Rand.

“If you want to increase the average bill spend per consumer, get those drinks out faster. Smart prep pre-service can allow for more efficient service during service.”

Focus on the Overall Experience

Gen Z are looking for an experience when they go out, not just to be fed so restaurant operators should consider the complete dining experience whether that is about a tasting experience or a musical one, Rand recommended. Fifty-one percent report they look for food related experiences when they go out, all-inclusive, special menu offerings and tasting experiences, while 37 percent look for music related experiences such as live music.  

“Hospitality can make or break an experience,” Rand said. “A friendly greeting upon arrival, prompt seating, a server that is knowledgeable and delivers food when it’s ready helps to create an enjoyable atmosphere for consumers when dining out. It’s also critical that locations offer a standard of cleanliness for consumers – making sure the bathrooms are clean and neat and their table is well-set. This is especially important for women and older consumers, who are more likely to notice both good and bad service.”