For months, industry headlines have warned that Gen Z is pulling back on nightlife, drinking less and threatening the future of bars and restaurants. But new U.S. research suggests the opposite may be true.
A new proprietary study from Questex’s Hospitality Group, conducted in partnership with Datassential, paints a far more optimistic picture. The Questex On-Premise Consumer Habits Report reveals that Gen Z—particularly those aged 21 to 28—is not only going out more frequently than older consumers, but also spending more when they do.
As the oldest members of Gen Z approach age 27 in 2026, the cohort is emerging as a powerful force in on-premise dining and drinking. Their behavior could signal a meaningful return to growth for the restaurant industry.
Debunking the Myth
“Interestingly, younger consumers have a significantly higher incidence of going out to eat and drink across all on-premise segments versus other age groups,” says Brandy Rand, Vice President of Hospitality at Questex. “And contrary to all the headlines claiming Gen Z is a detriment to bars and restaurants, our data shows they order more alcohol and better-quality drinks. They spend more on themselves than older consumers and don’t see price as a barrier when choosing where to go out.”
In other words, Gen Z isn’t retreating from hospitality. They’re redefining it—on their own terms.
Why Consumers Are Still Going Out
Despite tighter discretionary spending across the board, dining and drinking away from home remains a priority. The top reason consumers cite for going out? To treat themselves (53%). Socializing follows close behind at 45%.
Convenience is another powerful motivator—especially for younger diners. Consumers aged 21 to 28 are the most likely to say they choose to eat or drink out because it’s faster and easier than cooking at home. For operators, that signals an opportunity: frictionless experiences matter.
Even in a cautious economy, splurging on food and beverages remains a cross-generational behavior. Across genders, age groups, and income levels, consumers are still carving out room in their budgets for small indulgences.
What Drives Venue Choice
When deciding where to go, two factors dominate: food quality and price. But “price” doesn’t necessarily mean “cheapest.” Many diners are evaluating value—what they receive relative to what they spend.
Younger consumers, in particular, are drawn to “cool” experiences. For them, food and beverage quality is deeply intertwined with entertainment. A great cocktail menu or thoughtfully curated beer selection can be as important as the ambiance or music.
Promotions also matter. In today’s economic environment, 42% of consumers say deals influence their decision on where to dine or drink. Weekly specials, limited-time offers, and bundled promotions can build value perception without eroding brand equity.
Hospitality: The Make-or-Break Factor
While menus and pricing draw guests in, service determines whether they return.
Friendly greetings, prompt seating, knowledgeable servers, and timely food delivery all contribute to a positive experience. Cleanliness—especially well-maintained restrooms and neatly set tables—is non-negotiable. Women and older consumers, in particular, are more likely to notice both exceptional and poor service standards.
In a competitive market, hospitality isn’t just a differentiator; it’s a baseline expectation.
The Beverage Opportunity
Beverages remain central to the on-premise experience—and not just alcoholic ones.
Younger consumers are the biggest consumers of alcohol away from home, and they show strong interest in higher-quality drink options. They’re trading up, not down. At the same time, even guests who order alcohol frequently add a non-alcoholic beverage to their tab.
For operators, that means a strong beverage program should do double duty: showcase compelling beer, wine, and cocktail selections while also offering creative, high-quality non-alcoholic options. Pairing recommendations—both alcoholic and alcohol-free—with popular menu items can further elevate perceptions of quality.
The Digital Influence
Word-of-mouth remains powerful. Recommendations from friends and family are the most likely drivers of trial. But digital presence runs a close second.
Consumers actively consult online reviews, social media, and promotional posts when deciding where to go. Regularly updated profiles on platforms like Google, Facebook, and Instagram—especially those highlighting limited-time specials or events—can meaningfully influence traffic.
Actionable Insights for a Tough Economy
“As the restaurant industry looks for ways to increase frequency of visitation and grow check sizes against a tough economic backdrop, our report offers operators actionable insights they can implement right away,” Rand says.
The message is clear: encourage indulgence and social connection. Promote value without racing to the bottom on price. Elevate food and beverage quality. Deliver consistently strong hospitality. And stay visible online.
If the data holds, Gen Z may not be the industry’s challenge—it may be its comeback story.
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