A Michelin star chef and restaurateur believes that shifting drinking habits among younger Americans is posing a "real existential threat" to the restaurant industry, where profits are often tied closely to alcohol sales.
David Chang, founder of the restaurant group Momofuku, appeared on a recent episode of the TBPN podcast and pointed to places like Los Angeles where he said younger people are "drinking much less" and it's taking a toll on restaurants' bottom lines.
"The crazy thing is kids just don't drink anymore," Chang said. "Like, kids start, when they start a tab — which is crazy to me — they close it out every time. What is going on?"
"It is hurting small businesses," he added. "... If you look at ... only the blended numbers for most restaurants or beverage sales, I think that it might look flat or down, but it's actually I think way worse."
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According to a Gallup poll conducting earlier this year, just 54% of U.S. adults reported they consume alcohol — the lowest percentage in the survey's 90-year history. Among young adults surveyed, alcohol consumption has already been on the decline for the past decade, but the trend has accelerated in recent years, with the rate dropping from 59% in 2023 to 50% today.
Americans' drinking habits are also continuing to shift as more people consider it to have a detrimental impact on their health. But after decades of relative steadiness, Gallup found that the proportion of U.S. adults who drink alcohol has fallen for three consecutive years.
"The continuation of these trends may hinge on whether recent pronouncements about drinking’s risks are the final word on the subject, similar to how the U.S. surgeon general’s warnings about tobacco in the 1960s marked the start of a long-term decline in smoking," Gallup reported. "The trajectory of U.S. drinking could also depend on how much doctors, health authorities and policymakers reinforce the message that no amount of alcohol is risk-free."
