No longer satisfied with traditional food and drink offerings, younger customers are seeking personal, immersive and shareable experiences, choosing hospitality venues that offer them something unique.
This generational shift in behaviour is reshaping the landscape for pub and restaurant operators across the UK.
As highlighted in our Pubs & Restaurants Market Review 2025, the market remains resilient despite wider economic challenges and the demand for pub and restaurant sites across the UK continues to grow, underpinned by a rising appetite for experiential leisure.
Gen Z, those born roughly between the late 1990s and early 2010s, are now a dominant consumer group, and hospitality venues that surprise, delight and connect with communities are leading the way in attracting and retaining these younger audiences.
Memorable moments
From mixology masterclasses and themed pop-ups to competitive socialising activities and curated events, the most successful operators are those creating spaces that are not only well-located, but also well-lived in, and delivering memorable moments.
Digital integration plays a big role too. Venues that offer seamless online booking, personalised recommendations, app-based loyalty perks and social media-friendly environments are thriving. ‘Instagrammable’ spots promote themselves with happy customers becoming brand ambassadors and spreading the word on their own platforms.
Operators are responding by enhancing their offerings, putting the focus on ambiance, event programming and service quality. And we are seeing a notable rise in demand for low & no-alcohol drink options, prompting the diversification of drinks menus to meet evolving consumer needs.
We are also seeing consistently high levels of interest in hybrid hospitality venues that combine food, drink, entertainment and overnight accommodation, which offer guests a truly immersive experience. Gen Z consumers are, typically, less loyal and are happy to try new concepts to experiment with something different.
Next ‘big thing’
For operators, investors and developers, this shift presents an exciting opportunity to be the next ‘big thing’. Those who embrace this change are not only attracting greater footfall to their venues, they are also building long-term brand loyalty among a new generation of patrons.
In the first half of 2025, we saw a higher number of offers, deals agreed and completions for hospitality businesses than the same period in 2024, demonstrating the solid appetite and demand for hospitality venues.
With interest rates beginning to ease, and M&A activity expected to increase, the second half of 2025 offers a strong environment for innovation and investment.
Whether you’re looking to restore and reinvigorate a heritage asset or launch a brand-new concept, aligning with Gen Z’s values is an important factor in long-term success.
