Americans Are Drinking Less—And Bars Are Paying the Price in 2025

The drinking habits of Americans are changing fast. A 2025 Gallup poll revealed that only 54% of people in the U.S. now consume alcohol—the lowest rate on record. At the same time, restaurants and bars are seeing customers spend more on food than drinks, forcing some to adapt or close.

Damon Wise opened Pineapple Express in Montclair, New Jersey, with a business model split 40:60 between food and alcohol sales. For years, this ratio worked well. But over time, the balance shifted.

By the end of 2023, revenue had moved to 50:50. Just two years later, it reached 70:30 in favour of food. Wise pointed to customers drinking less and watching their budgets more closely. The broader trend reflects national changes. After COVID-19 lockdowns devastated bars, clubs, and events in 2020, demand slowly returned as venues reopened and vaccinations rolled out. Yet some sectors, like nightlife and large gatherings, took far longer to recover. Meanwhile, at-home drinking stayed high as remote work and new habits stuck. Experts link the decline in alcohol use to rising health awareness, generational shifts, and the growing popularity of GLP-1 medications—now taken by 6% of Americans. These factors combined have reshaped spending, leaving businesses like Pineapple Express struggling to keep up. The restaurant closed its doors in January after the revenue shift became unsustainable.

The closure of Pineapple Express highlights a wider shift in consumer behaviour. With fewer people drinking and more prioritising health and savings, restaurants and bars face pressure to adjust their offerings. For many, the days of relying on alcohol sales to drive profits may be fading.