What Happens When Cocktails No Longer Pay the Bills?

In the late ‘90s, Houston restaurateur Benjamin Mason recalls being able to hang out all night at a bar, drinking with friends. At the end of the party, his bill would come out to $22, plus tip. “A lot of bars now have embraced a luxury model to survive, but how many line cooks can afford more than one $20 cocktail?” says Mason, who owns Johnny’s Gold Brick, Winnie’s, and Starduster. “Hell, if I walk into a bar and cocktails are over $20, I’m probably only having one.” While rising prices are reason enough for guests to order one less glass of wine at dinner, there’s also an unmistakable shift in attitudes around alcohol consumption at play. A recent Gallup poll showed that the percentage of American adults who consume alcohol is just 54%, a record low across the past 90 years. Research has pointed to shifting socialization patterns and greater social isolation post-COVID, as well as growing health concerns. Whatever the cause, people are spending less money on wine and cocktails, making it harder for bars and restaurants to turn a profit. According to the 2026 Independent Restaurant Industry report from the James Beard Foundation, operators reported the continued rise of non-alcoholic beverages as the top consumer trend affecting restaurant operations. “Restaurants already operate on very tight margins, so when operating costs continue to rise and higher-margin items like wine see declining sales, it puts even more financial pressure on restaurant businesses,” says Andrew Rigie, executive director of the New York City Hospitality Alliance. “Cocktails and wine have always been the highest-margin category in F&B,” adds Michael Manjon, senior food and beverage manager at Rose Lane and Calvert’s at Park Lane New York. “You just can’t ignore the numbers.” Trying a ‘More Is More’ Approach Some operators are responding to wavering interest in alcoholic beverages by tacking more items onto their drink menus, namely a diverse range of NA options. It’s an “if you build it, they will come” approach to the beverage list, and one that supposes that guests will spend money on drinks—if those drinks meet them where they’re at. “Alcohol sales are definitely way, way down, and there hasn’t really been a great way to account for that,” says Greg Baxtrom, owner of Five Acres in New York City’s Rockefeller Center. At his restaurant, Baxtrom offers a wide range of soft drinks, sparkling water, juices, coffee, tea, and hot chocolate, in addition to a thoughtful non-alcoholic cocktail program. At Johnny’s Gold Brick, Mason’s team recently started offering non-alcoholic versions of roughly half of the monthly cocktail menu. “The idea was that the same original cocktails we’re making can also be ordered as a non-alcoholic version, available from the same menu everyone else is ordering from,” he explains. “It’s not a major percentage of our sales, but it has been quietly and steadily growing. More importantly, we’ve seen it be really appreciated by the folks who are ordering them.” As a next step to continue meeting drinkers where they are, operators are paying attention and buying more of NA options that prove especially popular. At Mason’s bars, that means non-alcoholic beer; for the Park Lane, that means RTD (ready-to-drink) cocktails like St. Agrestis’ Phony Negroni riffs. “There’s been a huge explosion in the quality of NA beers and spirits,” says Mason. “Even folks who are regular drinkers [are] trying them and enjoying them.” Vying for Every Dollar Just as stress on vines produces better wine, tightening spending behavior means hospitality professionals need to work even harder to convince guests to spend their money. Part of the magic lies in making the increasing number of non-drinkers feel comfortable. “We’ve found that people who aren’t drinking still want the whole bar experience, and they don’t want to have to explain themselves,” says Mason. “They don’t want to feel singled out or have that awkward conversation in front of their friends where they say ‘make me something but not fruity,’ and end up with a Shirley Temple.” As both a mixologist and a DJ, Manjon says he approaches creating cocktails, NA or not, the same way he approaches music—paying close attention to layering, balance, texture, and progression. If the drink doesn’t feel intentional, it doesn’t make the menu. And luckily, as bartenders put more effort into both crafting non-alcoholic drinks and sourcing the ingredients to use in them, the sticker shock of spending $15 or $17 on a cocktail is fading. “People [now] seem to understand that non-alcoholic spirit alternatives cost almost as much as the spirits themselves, and that what they’re paying for isn’t just alcohol — it’s the ingredients, the glassware, the service, and the overall experience,” says Mason. “When there’s a clearly listed non-alcoholic cocktail on the menu that’s treated with the same care as everything else, people are usually perfectly happy to pay for it.” More Beverage Industry Coverage - Inside the pros and cons of UNESCO recognition. - Sulfur who? These wineries are using natural alternatives. - A historic storm was no match for the 26th Wine Star Awards. - Cocktail omakases are back and better than ever. - Remembering the master blender who turned Bordeaux into a global sensation. New Arrival Bar Culture Martini Glasses (Set of 2) In Stock | $140 Published: March 25, 2026