Majority of hospitality operators see demand for non-alcoholic drinks rising
Over a quarter (26%) of restaurant goers in the Netherlands think mocktails are nothing more than ‘expensive lemonade’. Yet restaurant owners see a different trend: alcohol-free alternatives are gaining ground and demand is growing robustly. Almost three quarters (73%) of restaurateurs expect this demand to increase further in the coming year. This is according to research by checkout and payment platform Lightspeed (NYSE: LSPD) (TSX: LSPD), conducted among 2,000 restaurant visitors and 200 hospitality entrepreneurs in the Netherlands.
The reasons for guests to choose alcohol-free vary. For instance, it could be for health reasons (18%), because of taste (15%) or religious considerations (5%). One in five feel that alcohol-free drinks deserve a more prominent place on the menu. However, there is still a group of 14 per cent who say eating out without ordering alcohol is boring.
The shift towards alcohol-free is evident for hospitality entrepreneurs. More than half (55%) of the entrepreneurs see guests ordering alcohol-free or low-alcohol drinks more often than alcoholic drinks. 23 per cent of catering entrepreneurs say they are more conscious of their alcohol consumption when dining out than a year ago. Over two-thirds (69%) of hospitality entrepreneurs are considering expanding their range of alcohol-free drinks due to this growth. In addition, almost three quarters (72%) say alcohol-free options are already a fully-fledged alternative on the drinks menu.
To respond to that demand, restaurants are expanding their beverage menus. Alcohol-free beer is now as common as soft drinks: three-quarters of hospitality businesses (75%) offer these options. Mocktails (55%) and alcohol-free wine (54%) are also available at many on-trade outlets. In addition, new categories are making an appearance: almost a fifth of restaurants serve functional drinks that promise health benefits (19%) or probiotic drinks such as kombucha (19%).
“We notice that the demand for non-alcoholic alternatives is increasing and here the same quality as our cocktails is expected,” states Joost Maters, owner of 1920 Speakeasy cocktail bar. “Part of the experience is the craft, which together with high-quality ingredients and techniques justifies a higher price. When you serve sparkling water with syrup as a mocktail, you really hit the mark. Non-alcoholic spirits still need some time to prove themselves, but they are certainly not inferior to alcoholic drinks. However, you need to approach them with the same creativity, flavour balance and presentation as traditional cocktails.”
“The rise of non-alcoholic drinks is undeniable,” says Emine Youssef, Regional Senior Director at Lightspeed. “That some guests still see mocktails as ‘expensive lemonade’ shows that there is an opportunity for hospitality entrepreneurs. By investing in creativity, taste and presentation, you position alcohol-free not as a substitute, but a category in its own right that ties in with broader trends: from health and wellness to more conscious consumption. In this way, you not only reach the health-conscious guest, but also build a menu that responds to changing expectations.”
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