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Here's what I see happening way too often: Restaurant owners missing out on serious revenue because they're still believing outdated myths about non-alcoholic (NA) cocktails.
After speaking with industry experts who are deep in the beverage distribution world, I've learned that the assumptions most restaurant owners hold about NA cocktails are completely wrong. These misconceptions are keeping operators stuck in the past while a massive revenue opportunity passes them by.
The adult non-alcoholic beverage industry hit $423 million by July 2024 and is on track to reach nearly $1 billion this year. Yet most restaurant owners are missing out because they're clinging to outdated assumptions that are costing them serious revenue.
Here are the five most dangerous myths about non-alcoholic cocktails that are keeping you from capitalizing on this massive opportunity.
Myth #1: "Non-Alcoholic Drinks Are Just for Gen Z"
This is completely wrong.
The data tells a different story: 94% of consumers purchasing non-alcoholic beverages in restaurants also purchase alcohol. These aren't just members of Gen Z or people who don't drink—they're your regular customers making different choices.
Industry experts call them "switchers," customers who might start with an NA beverage and then move to alcohol with dinner, or choose not to drink on weeknights but enjoy cocktails on weekends. The switcher is the person who may be choosing to drink less Monday through Friday, then enjoys alcohol on Saturday, and skips drinking entirely on Sunday.
When you have switchers sitting at your table, the goal remains the same—you want to upsell. You want to sell dessert, herbal tea, dessert wine, aperitifs. You want as many beverages on the table as possible across their entire dining experience. So why the hell wouldn't you serve the needs of the switcher and allow them to feel like adults out for the night, spending money in your restaurant?
Instead, you're offering them the equivalent of being a vegetarian in the 90s—everyone else gets steak and lobster, and they get moved to the kids' table with club soda and lime.
Myth #2: "It's Just a Trend That Will Fade"
Wrong again.
This isn't a trend—it's a fundamental shift in consumer behavior that started gaining momentum in late 2021, when functional beverages and adaptogenic ingredients started gaining traction alongside a broader cultural conversation around health, wellness, and mental health.
The numbers don't lie. We're collectively working in a space nearing $1 billion in the United States. There's serious money on the table —revenue and profitability that can impact your bottom line, if you're willing to dip your toe in the water.
When major restaurants like French Laundry and Eleven Madison Park are building comprehensive NA programs, you're not looking at a fad. These establishments serve the most discerning customers and have been vetted by the sommelier community and acclaimed chefs. They wouldn't invest in this space if it weren't here to stay.
Myth #3: "Non-Alcoholic Means Less Profitable"
This myth is costing you serious money.
Here's what industry research shows: The pour cost on adult single-serve NA products is actually MORE profitable than alcohol. Let that sink in. The category that's been your profit center for years? NA cocktails can beat it.
Think about the implications. The net result is actually even better in adult NA than it is on the traditional alcohol profit and loss sheet.
Plus, you're serving customers who want flavor experiences that won't disappoint or subtract from their overall dining experience. From Gen Z to boomers, the common denominator for people spending money in your restaurant is that they want flavor, and they want a flavor experience that matches the quality of everything else you're serving.
Myth #4: "Our Current NA Options Are Good Enough"
Club soda with lime is not an NA program.
Having a dusty bottle of non-alcoholic beer that two people know how to find doesn't count either. This approach is like the old days when restaurants could check a box by saying "yes, we have an NA offering" that included soft drinks and one warm bottle of non-alcoholic beer hidden somewhere behind the bar.
The reality, and this changes literally by the time you read this, is that there are all kinds of incredible options available. You've got functional beverages designed to have specific health benefits. Ready-to-drink cocktail cognates that are direct analogs to classic cocktails. De-alcoholized wines made through reverse osmosis. Wine alternatives for people who want the ritual of wine with food but don't want de-alcoholized options.
The range of quality NA options available now means there's no excuse for weak offerings that make your customers feel like second-class citizens.
Myth #5: "It's Too Complicated to Implement"
This is the myth that keeps restaurant owners paralyzed.
Industry experts recommend starting simple. Walk before you run. You don't need to throw the kitchen sink at this right away. Start with representation across the subcategories so you have coverage.
Here's a proven starting lineup:
- Non-alcoholic beer of quality: Challenge yourself to go beyond commoditized products. Many local breweries are bringing excellent options to market. Keep it ice cold, which is where it tastes best.
- De-alcoholized sparkling wine in single-serve format: Go with a 200-milliliter bottle, so your risk is reduced. You won't open a bottle and watch the bartender dump it out three days later because it lost carbonation.
- One cocktail cognate: The Phony Negroni is polarizing because it's bitter, but it's that good. People either love it or it's not for them, but it's a great starting point.
The key is staff education. Train your team on these products the same way you train them on alcohol. Help servers understand they shouldn't treat NA options as afterthoughts but as integral parts of your beverage program presentation.
When you leave the drink list at the table, your server should be comfortable navigating conversations about what a functional beverage is, what a Phony Negroni is, how de-alcoholized wine is made, etc. These conversations create opportunities to educate, offer additional hospitality, and create memorable experiences.
The Implementation Reality
Here's what's happening in markets across the country: Most distributors and restaurant operators are still playing catch-up. In many cases, beverage companies are the first to come in with comprehensive offerings across all subcategories, and they're often the first willing to take time for the value proposition conversation.
There's still heavy lifting happening in educating the trade, one restaurant at a time. But the restaurants that get on board and dip their toe in the water consistently report back positive results with products that are risk-free, often single-serve, with no worry about waste.
For menu placement, here's a crucial strategy: if you have a proper beverage program with cocktail and wine lists, integrate your adult non-alcoholic offerings into those lists rather than segregating them. Show the ABV next to each beverage so when someone orders a Phony Negroni sitting next to the Manhattan, they feel included in the adult beverage experience while having full clarity on what they're getting.
This integration matters for customers who aren't ready to announce to their dining companions that they're not drinking. When NA options are woven throughout the regular categories, customers can order discreetly without feeling singled out.
The Bottom Line
Consumer behavior has shifted permanently. Some of your customers are asking for these options whether you realize it or not. Others are asking with their wallets by going elsewhere.
The restaurants succeeding with NA programs aren't doing anything revolutionary. They're paying attention to what their customers actually want and delivering quality options with proper staff training and thoughtful menu placement.
Industry predictions suggest that 10 years from now, comprehensive NA programs will be the new normal. The operators investing early and doing the pioneer work are positioning themselves for long-term success in a category that's showing tremendous growth momentum.
Stop believing these myths and start capitalizing on this opportunity. Your bottom line will thank you.
If you're running multiple locations and want to understand how strategic decisions like implementing NA programs fit into profitable scaling, grab your copy of Multi-Unit Mastery at IRFbook.com. This framework shows you exactly how to make revenue-driving decisions across your restaurant group while maintaining the culture and systems that support sustainable growth.
Christin Marvin is a distinguished restaurant coach, speaker, and host of The Restaurant Leadership Podcast. She is also the author of Multi-Unit Mastery: Simplify Operations, Maximize Profits and Lead with Confidence, and The Hospitality Leader's Roadmap: Move from Ordinary to Extraordinary. She specializes in helping independent multi-unit restaurant owners scale without losing their minds or their culture. With over twenty years of hands-on experience in both fine dining and high-volume growth concepts, Christin has established herself as the go-to authority for restaurant leaders ready to move from chaos to confidence. She's the founder of Solutions by Christin and creator of the Independent Restaurant Framework (IRF) (a proven system that transforms overwhelmed owner-operators into confident CEOs). Christin's approach is built on supportive tough love and real-world experience. Having navigated her own journey from line cook at 15 to managing partner by 30, she understands the unique challenges facing restaurant leaders today. Her vulnerability about struggling with burnout and using alcohol to cope has made her a trusted voice for leaders who need someone who truly gets it. Through her personalized one-on-one coaching, elite group programs, and leadership workshops, Christin helps restaurant groups build unified leadership teams, create culture-driven operations, and implement systems that actually work. Her clients don't just survive expansion (they thrive through it).
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