Nightlife venues embrace 'experience economy' as alcohol consumption falls

Nightlife venues adapt to changing consumer habits as alcohol consumption falls.

The full report

A shift in consumer habits is being felt in the nightlife industry, with a decline in alcohol consumption leading to a change in how venues operate. According to a Flinders University study, generation Z is 20 times less likely than baby boomers to choose to drink alcohol.

This trend is being reflected in the way nightlife venues are adapting to attract customers. In central Queensland, a pub is hosting a weekly run club, where participants can cash in on a meal discount at a rotating list of venues. The event brings in up to 100 young people, who are more interested in healthy activities than drinking.

Pub owner Stephen Roberts says the run club has helped his business reach a new audience. "We're sort of reaching out to a crowd that maybe we wouldn't have reached out to before [because] we're quite an old-school country-style pub," he says. This approach is part of a broader trend towards the 'experience economy', where venues are focusing on providing a unique experience rather than just serving alcohol.

Queensland's first nightlife economy commissioner, John "JC" Collins, says consumers' habits have changed and business costs have risen. "Young people have been healthy, which is great, but … they're not spending as much over the bar," he says. The cost of doing business has "gone through the roof", with rising insurance, supply prices and wages.

The shift towards the 'experience economy' is being driven by changing consumer habits, with many young people prioritizing health and wellness over drinking. As a result, nightlife venues are being forced to adapt and find new ways to attract customers.