Dry January is a trend that has gained traction over the last few years as part of a sober-curious movement, often continuing well past the final day in January. Studies show that 49 per cent of consumers are trying to consume less alcohol this year, which is a 44 per cent increase over 2023.
Recent research offers some key insight into this trend and what it may mean for restaurant operators:
- The non-alcoholic market is now valued at $199M (a 24 per cent increase year-over-year)
- 70 per cent of Dry January participants continue the practice beyond the month of January
- 75 per cent of participants still buy alcohol, focusing on moderation, rather than complete sobriety
- Mocktail menu mentions have risen by over 29 per cent, and non-alcoholic spirit sales have grown 67.7 per cent, with 28 per cent of Gen Z and Millennials having tried a mocktail because it was endorsed by a celebrity or influencer
- Interest in TCH-infused beverages has increased, with 26 per cent of diners planning to try them
Operators looking to keep their beverage menus profitable need to create a strategy that attracts alcoholic and non-alcoholic customers, helps them stand out from the competition, and broadens their target market:
- Rather than removing alcohol from the menu (which could result in a potential revenue loss of up to 65 per cent in beverage sales), diversifying the menu is a great way to offer something for everyone, draw in larger groups of guests, and address potential changes in diner preferences.
- Offering cocktail and mocktail LTOs, hosting happy hours, and pairing seasonal beverage features with favourite dishes can add value and innovation to your menu.
- Focusing on creative, healthy options featuring functional ingredients can attract those guests who are cutting down on their alcohol consumption as a healthy choice.
- Though many consumers are choosing beverages with wellness in mind, people are also looking for innovation, with 40 per cent more likely to visit a restaurant with new flavours, and 33 per cent willing to spend more at restaurants for those new flavours. This offers operators the opportunity to broaden the menu while maximizing margins.
The good news for operators is that while alcohol sales continue to be a revenue-generator for restaurants (with 50 per cent of Millennials and 25 per cent of Gen Z making it their beverage of choice), today’s diners are making decisions based on price, top trends, health and wellness, and visual appeal. Operators focusing on staying trendy, offering value, and creating an appealing cocktail and mocktail menu may see the most success in the beverage sector through Dry January and beyond.
