Michelin-Starred Chef David Chang Warns of Gen Z’s Impact on Dining

Michelin-starred chef David Chang has raised concerns about a significant shift in drinking habits among younger generations, particularly Gen Z. During a recent interview on TBPN, Chang described this trend as an “existential threat” to the restaurant industry. The decline in alcohol consumption among young adults is contributing to a challenging economic environment for restaurants already grappling with rising costs and evolving consumer preferences.

Chang pointed out that younger diners are not engaging with alcoholic beverages as previous generations did. “Kids just don’t drink anymore,” he noted, highlighting a stark contrast to past experiences where late-night outings often led to forgotten credit cards and lingering hangovers. According to Chang, the typical sales ratio in restaurants is approximately 70% food to 30% beverages, making a decline in alcohol sales particularly impactful. He referenced industry data showing an 18% drop in beverage sales, which raises alarms for restaurateurs.

A recent survey by Gallup revealed a 9% decrease in alcohol consumption among young adults, including some millennials, between 2023 and 2025. Although the reasons for this shift are complex, factors such as heightened awareness of health and wellness, along with increasing alcohol prices, are significant contributors.

Changing Dining Trends

In addition to reduced alcohol consumption, Gen Z is redefining social experiences by moving away from traditional nightclubs and embracing communal dining and supper clubs. These evolving preferences are placing additional strain on an industry already facing obstacles due to inflation and shifting economic conditions.

Phil Kafarakis, CEO of IFMA, emphasized the current struggles within the restaurant sector. “Consumer sentiment is in a very bad place,” he stated in an interview with Business Insider, echoing the frustrations felt by many in the industry. Rising ingredient and labor costs are further complicating the financial landscape for restaurants, which are under pressure to find new ways to maintain profitability.

With declining beverage sales and increased operational costs, Chang expressed uncertainty about how restaurants will adapt. He suggested that food prices may need to rise, although he acknowledged that such a move could alienate consumers who already feel the pinch of rising expenses. “I don’t have an answer,” Chang admitted, recognizing the delicate balance restaurateurs must strike in the current climate.

Kafarakis predicts that the industry may face a “reckoning” as it enters the new year, with potential closures likely if trends do not reverse. He described the situation as a “tsunami” that does not show signs of abating.

As the restaurant industry navigates these turbulent waters, the evolving habits of younger diners will undoubtedly continue to shape its future.