Health or hip pocket? Gold Coast hospitality bosses on the surprising Gen Z drinking trend

Gold Coast hospitality honchos say new research revealing youngsters are drinking less than previous generations is less about a health kick.

Gold Coast hospitality honchos say new research showing youngsters drink less than previous generations is less about a health kick and more about the hip pocket.

One in five 18-24-year-olds went longer than six months without alcohol last year, research published on Tuesday found.

The survey of 1454 people last year by not-for-profit Dry July also found younger adults were more likely than the general population to say they were drinking much less (23 per cent compared to 17 per cent).

Within Gen Z, a significant 63 per cent said they were motivated by their desire to save money while 35 per cent said wanting to fit in with their peers were top motivators for not drinking.

Additionally, two in five said taking a break has become a social norm (40 per cent) and 30 per cent noted it as “cool” to abstain.

But there is some doubt as to whether the shift is being driven by people’s health considerations as much as it is by rising cost of living.

Artesian Hospitality managing partner Matt Keegan says Gen Z continues to spend at his group’s businesses. Picture: Nigel Hallett

Artesian Hospitality managing partner Matthew Keegan said his large hospitality group – boasting nightclubs, bar-restaurants and beach clubs across the Gold Coast and Brisbane – saw real behavioural data every day and the numbers told a different story.

“Gen Z aren’t disappearing from the scene - they’re driving it,” he said.

“In our high-energy venues, they’re among the most active spenders. It’s less about health kicks and more about the cost of living. When money’s tight, people cut back – but that applies more to 28–35 year olds than the younger crowd.”

Mr Keegan said analysis from Rabobank in April this year backed what his company was seeing across scanning entries, restaurant reservations, drink orders, and customer spending data from banking partners.

“People aren’t drinking less for wellness - they’re just spending less overall,” Mr Keegan said.

“The narrative that young people are all suddenly sober doesn’t match real-world data. It makes a good headline - but it’s not what’s actually happening at scale.

“We get a unique and accurate picture of real behaviour - not just what people say in surveys, but what they actually do. That includes anonymised data from banks and payment systems showing alcohol spend is still high, especially among the younger crowd.”

And businesses are pushing back against the cost crunch by offering better experiences and more value for punters.

Aerial view of the Burleigh Pavilion. Photo: Tourism & Events Queensland

Burleigh Pavilion owner Ben May, running one of the most ‘Instagram-worthy’ venue on the Gold Coast, said he moulded his business model around behaviour of the younger generations.

“Those in their 20s and 30s definitely have a more mature attitude to alcohol than those 20 years before them,” he said.

“Drinks are more often associated with a meal or a celebration rather than an everyday norm of life.”

Mr May said the Pavilion’s success was “definitely” based on its view of the Gold Coast coastline and its “great environment”.

Burleigh Pavilion owner, Ben May. Picture: Jerad Williams

“That needs to be backed up with a perception of value,” he said.

“People need to know they are not being over charged.

“Part of that offering is that venues need to feel clean, safe, have good music etc.

“The small things add up to a consistency allowing people to return to a venue knowing they will have a great experience for their dollars spent.”

Small bar king and eatery boss Scott Imlach said there were a number of issues resulting in a decline in spending on alcohol among the younger crowd.

“If you take England, 23 per cent of those between 18 and 25 years old no longer drink. There’s a nightclub a week closing over there at the moment,” he said.

Mr Imlach reckons other factors feeding into Gen Z’s alcohol aversion are the advent of dating apps – meaning people don’t have to go to a bar to meet.

There’s the rise of run clubs, where youngsters can get fit and speak to other like-minded people.

But the other major factor is the rising cost of living.

“I’ve noticed it here (on the Gold Coast). A lot of the young ones here probably only get out once a week – it’s the cost of living,” he said.

“We’ve gone from people going out four to five times a week down to one a week, because they can’t afford to.

“It’s having a huge effect. It’s a sign of the times.”

Hospitality boss Scott Imlach says there are a range of factors affecting young people’s spending on alcohol. Picture Glenn Hampson

Mr Imlach said he had friends in the hospitality business in Melbourne who were reporting similar trends.

“It’s not a new thing. It’s been happening for a few years, but it’s hitting its peak now,” he said.

“People are starting to realise the effect it has on businesses.”

Mr Imlach said people were looking to push their dollar further, whether that meant better entertainment, better atmosphere, named DJs, or better offers.

“When they do go out, they are prepared to spend but they’re looking for more bang for their buck,” he said.

“It is changing times. There’s healthier drink options coming out too – non-alcoholic drink options.”

But at the end of the day, Mr Imlach said you can’t create the atmosphere of a venue on your phone or at home.

“You still can’t beat live music at a venue,” Mr Imlach said.

How saving money on a night out became a health kick

Cutting back on cocktails started as a way of keeping down costs on a night out for Banora Point university student Leila Koppens.

But over time the young hospitality worker realised there were benefits for her health and wellbeing as well.

20yrs cafe worker and uni student Leila Koppens at Burleigh Heads .Pic Annette Dew

These days the 20-year-old describes herself as “just not a big drinker”, saying two to four standard drinks typically constitutes a rare night out.

“Last time I went out I was like I’ll drive and have one drink because it’s just too expensive to get an Uber and get lots of drinks,” she said.

“I’m a uni student and living out of home.

“The budget’s very tight, so for me it’s not worth the money to drink and then pay for an Uber … and all of that.”

She also said she didn’t enjoy feeling tired and grumpy in the hours and days after drinking alcohol.

“I just thought that’s not worth it. I’m generally a fairly happy and confident person so the downsides really outweighedthe benefits for me.”

And while she’s noticed a similar trend among her peers as well, it’s not all one-way traffic.

“Generally, my generation, I have noticed a drinking less,” she said.

“But I don’t think it’s across the board either because I still think there’s plenty of young people who are going out anddrinking all the time.

“It just depends on the person, I think.”

Originally published as Health or hip pocket? Gold Coast hospitality bosses on the surprising Gen Z drinking trend