The move is presenting both challenges and opportunities for pub operators and drinks suppliers, according to CGA by NIQ’s PubTrack data.
As late-night socialising has traditionally been dominated by nightclub and bar channels, a generational move away from such offers gives lively and social pubs as potential leaders in high-tempo social gatherings, providing a key opportunity for operators to tap into a new, highly engaged market segment.
However, the challenge is present to pubs and bars due to changing expectations around drink choices and alcohol is no longer the main driving force behind Gen Z’s needs, which focuses on moderation.
A third (33%) of average consumers drinking less and only 10% of Gen Z drinking alcohol without restrictions (versus 21% of all consumers).
Therefore, a diverse, high-quality of low & no alcohol and soft drinks is vital in appealing to Gen Z.
Gen Z potentially intimidated
CGA by NIQ’s Dani Rowlands and Reuben Pullan also found ambience matters more to a younger crowd with Gen Z often finding traditional pub environments intimidating, leading to an increased demand for venues with a welcoming, comfortable and safe atmosphere.
They state this desire for a ‘home away from home’ is the fastest-growing need among Gen Z pubgoers.
Conversely, such consumers also seek out lively, fun and exciting venues where they can gather with friends, enjoy value-for-money drinks and create memories.
The PubTrack data showed four in five Gen Z respondents, and two in three Millennials, would be more likely to visit pubs with karaoke sessions, themed events, games and live music, which significantly outperform traditional Sunday lunches and beer tastings for younger consumers.
In particular, live sports are a major driver of visits for three quarters of Gen Z pub visitors.
Top choice
CGA by NIQ said: “For operators, the message is clear. Pubs need to adapt to capture the hearts and minds of Gen Z. A strong focus on providing a diverse range of drinks, along with a lively atmosphere, will ensure pubs remain a top choice for late-night occasions.
“On the other hand, this does not mean the perception is diminishing of pubs as community hubs with a more traditional appeal. There are distinct differences in how varying consumers are engaging but pubs staying ahead of evolving consumer behaviours without alienating existing customer bases are striking a winning balance and genuinely offering all things to all people.”
CGA by NIQ client director Dani Rowlands added: “Gen Z isn’t just a future audience. They’re already carving out a new space in the on-premise and redefining how pubs operate today.
“As a result, it’s an exciting opportunity for pubs to boom alongside market changes. Pubs can become the go-to destination for late-night occasions as moderation rises and demand for diverse, compelling experiences grows. Operators and suppliers who understand and act on these shifts stand to gain the most.”
PubTrack data is collated from an online survey of 10,000 active pub consumers.
