There has been a significant shift in how Gen Z is engaging with the GB On Premise sector, presenting both challenges and opportunities for pub operators and drinks suppliers.
Late night socialising has traditionally been dominated by nightclub and bar channels. ACorrespondingly, this generational move away from nightclubs positions lively and social pubs as leaders in high-tempo social gatherings, providing a key opportunity for operators to tap into a new, highly engaged market segment.
However, this behavioural variation is accompanied by changing expectations around drink choices. This is because alcohol alone no longer cuts it for a large proportion of young consumers who place a growing emphasis on moderation. The numbers tell the story, with a third (33%) of average consumers drinking less, and only 10% of Gen Z drinking alcohol without restrictions (versus 21% of all consumers).
For these reasons, a diverse, high-quality soft drinks range is vital for appealling to Gen Z’s more mindful, balanced tastes, while bearing in mind the balance between value and quality skews towards cheapness for this demographic.
In addition, ambience matters more to Gen Z. Younger consumers often find traditional pub environments intimidating, leading to an increased demand for venues with a welcoming, comfortable, and safe atmosphere. In fact, this desire for a ‘home away from home’ is the fastest-growing need among Gen Z pub-goers.
Yet, Gen Z consumers also seek out lively, fun, and exciting venues where they can gather with friends, enjoy value-for-money drinks, and create memories. The research shows 4 in 5 of Gen Z, and 2 in 3 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-goers.
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.
Dani Rowlands, CGA by NIQ client director, said: ” 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.”
Dani Rowlands, CGA by NIQ client director, said: ” 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.”
Powered by CGA’s Outlet Index and an online survey of 10,000 active pub consumers, PubTrack is a unique and flexible solution for expert analysis of Britain’s entire pub landscape. It helps suppliers understand key pub behaviours and sales drivers and analyse their consumers and competitors.
To learn more about CGA by NIQ’s PubTrack solution and its unrivalled insights into Britain’s pub universe, contact Dani Rowlands here.
