Hospitality has always been built on ritual. The glass of champagne that marks a celebration, the nightcap at the bar, the morning cappuccino at breakfast, these are more than products; they are anchors of culture, memory, and guest expectation. For operators, particularly those with long-standing and generationally loyal customers, alcohol and coffee have been non-negotiable pillars of both experience and revenue.

But the market is shifting. The past 15 years have seen significant changes in how alcohol and coffee are consumed, and these shifts reflect deeper cultural and generational currents that hospitality can no longer ignore (Wilms et al., 2023; Hallak et al., 2022; Kerr et al., 2024).

The Generational Paradox

For Baby Boomers and Gen X, alcohol and coffee remain central to the hospitality experience. Daily coffee consumption is highest in these groups, averaging over two cups a day, while alcohol remains closely tied to social rituals and expectations (Wilms et al., 2023). For these generations, hospitality without these staples feels incomplete.

Millennials and Gen Z, however, are rewriting the script. Coffee consumption is lower, with Gen Z averaging just half a cup a day, and nearly half never drink it at home or work (Hallak et al., 2019). Alcohol, too, is in decline among younger consumers. Since the UK’s peak in 2004, overall alcohol consumption has dropped by around 20%, with non-drinkers in the 16–24 demographic rising from 19% in 2011 to 26% in 2022 (Kerr et al., 2024).

Yet the story is nuanced. Gen Z aren’t abandoning alcohol altogether. They are approaching it differently: drinking less frequently, but showing a preference for premium spirits, crafted experiences, and mindful moderation (Hallak et al., 2022). Similarly, while many drink less coffee, they are fuelling the rise of artisanal cafés and boutique roasters, prioritising quality, brand story, and sustainability over sheer quantity (Hallak et al., 2019).

Wellness as the New Driver

These shifts point to a bigger trend: the rise of wellness-conscious consumption. The sober-curious movement, the explosion of low- and no-alcohol alternatives, and the demand for circadian-aligned or functional beverages show that younger generations aren’t looking for abstinence, they’re looking for balance (Hallak et al., 2022).

While Boomers and Gen X continue to prioritise alcohol and coffee, Millennials and Gen Z are placing equal, if not greater, value on wellness-aligned alternatives. These include non-alcoholic cocktails, adaptogen-infused drinks, and supplements that support energy, focus, and recovery without the drawbacks of overstimulation or sleep disruption. In coffee, the same logic applies: artisanal and speciality cafés thrive by delivering high-quality, story-rich, and sustainable offerings (Hallak et al., 2019).

The Operator’s Dilemma, and Opportunity

For today’s operators, particularly those with heritage and generationally loyal customer bases, the challenge is not to abandon alcohol and coffee. Doing so would risk undermining the very traditions that have defined the guest relationship for decades. Instead, the opportunity lies in expansion.

• Respect tradition: Keep alcohol and coffee as core pillars for guests who continue to see them as integral to hospitality.

• Evolve intelligently: Introduce credible, science-backed alternatives that meet the demands of younger, health-conscious guests. This could mean pairing classic cocktails with premium no-alcohol serves, offering circadian-friendly caffeine options, or integrating functional beverages and supplements that align with performance and recovery (Hallak et al., 2022).

• Position for growth: By balancing heritage with innovation, operators can retain loyal generational guests while attracting and retaining the next wave of consumers who are shaping the future of hospitality.

A Market in Transition

The data speaks for itself:

• Alcohol: Down ~20% in the UK since 2004; younger demographics drink less, but show selective re-engagement with premium categories (Kerr et al., 2024).

• Coffee: Stable overall, but generational split is clear—older generations drink more daily, while Gen Z engages less frequently and more selectively (Hallak et al., 2019).

• Wellness-aligned demand: Rising fast, with low/no-alcohol beverages, artisanal cafés, and functional drinks carving significant market share (Hallak et al., 2022).

The implication is clear: hospitality must hold space for both tradition and transformation. Coffee and alcohol will remain commercial cornerstones, but they can no longer stand alone.

The Future of Hospitality is Hybrid

The future isn’t about “out with the old.” It’s about creating a spectrum of choice. Hospitality must evolve into something biologically intelligent, where alcohol and coffee continue to play their role, but alongside a new generation of offerings that support circadian alignment, recovery, and long-term performance.

This is not a threat to operators with deeply loyal, generationally driven customers. It is an opportunity. By widening the spectrum, they can protect heritage, secure revenue, and align with the wellness-conscious consumer who will define the next era of hospitality.

References

Hallak, R., Lee, C., & Onur, İ. (2019). Examining healthy beverages in the hospitality industry: evidence from Australia and New Zealand. British Food Journal, 122(2), 365–379. https://doi.org/10.1108/bfj-05-2019-0324

Hallak, R., Onur, İ., & Lee, C. (2022). Consumer demand for healthy beverages in the hospitality industry: examining willingness to pay a premium, and barriers to purchase. PLOS ONE, 17(5), e0267726. https://doi.org/10.1371/journal.pone.0267726

Kerr, W., Lui, C., Ye, Y., Li, L., Greenfield, T., Karriker‐Jaffe, K., … & Martínez, P. (2024). Long‐term trends in beverage‐specific drinking in the national alcohol surveys: differences by sex, age, and race and ethnicity. Alcohol: Clinical and Experimental Research, 48(7), 1322–1335. https://doi.org/10.1111/acer.15335

Wilms, N., Seitz, N., Schwarzkopf, L., Olderbak, S., & Kraus, L. (2023). Alcoholic beverage preference in Germany: an age-period-cohort analysis of trends 1995–2018. Alcohol and Alcoholism, 58(4), 426–435. https://doi.org/10.1093/alcalc/agad013