Gen Z trend sparks fear among Aussie pub owners: 'Worst in 40 years'

Woman talking to the camera next to three men at a bar
Workplaces have been urged to rethink how staff socialise with each other as post-work drinks become less popular. (Source: TikTok/Getty)

It's no secret that the Aussie hospitality industry is struggling in a post-COVID world, but they're facing a new threat that could push them even further to the brink. The youngest workers in the country aren't as interested in drinking alcohol as their older counterparts and that's sparked a warning to employers to change their tactics if they want colleagues socialising with each other.

Fewer workers having a schooner or two (and maybe a quick and easy meal) with each other could have a big impact on pubs across the country, particularly in CBD areas. Australian Restaurant & Cafe Association CEO Wes Lambert told Yahoo Finance that many venues are already on their knees.

"For an industry that has been under threat for nearly all of 2024 any further decrease in spending will certainly push more businesses to the walls," he said.

He highlighted a recent report from CreditorWatch that indicated one in every 11 hospitality businesses are expected to close their doors forever in the next 12 months.

"For many of the businesses that have unfortunately closed in 2024, they are saying that these are the worst conditions that they have ever seen, sometimes in a 30 or 40-year career," he explained to Yahoo Finance.

"The owners of hospitality businesses around Australia are often mum and dad businesses...many are barely even making the minimum award rate. Some are working for free."

So any trend that creates less foot traffic in these establishments could be the final nail in the coffin for many.

What's happening with the post-drinks tradition?

For decades, workers of all ages went to the pub around the corner after quitting time to blow off some steam, get to know each other beyond the "where's that email" chat, and have some fun.

But there have been a bunch of factors coalescing that could have reduced this pastime activity.

You've got people working from home, engaged in sporting activities, picking kids up from school, exercising, and other post-work commitments.

There's also the cost-of-living crisis impacting personal budgets, making it difficult to justify a few bevvies at the pub.

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And then you've got young people, particularly Gen Z workers, who not only aren't keen on a beer or wine after 5pm, but at all.