The rise of non-alcoholic beverages and popular GLP-1 medications like Ozempic pose an “existential threat” to cocktail-heavy hospitality brands, the chief executive of José Andrés Group said.
“I’m in the business of peddling cocktails,” Sam Bakhshandehpour, the group’s global CEO, said at Semafor’s Business of Luxury event Wednesday. “People aren’t drinking as much, they’re not eating as much — that’s the product we’re selling, so the business is in a tough spot.”
NA drinks are becoming commonplace on menus as more people around the world shun alcohol, often for lifestyle and health reasons. That trend is especially pronounced among young Americans, less than half of whom drink, according to a Gallup poll this year.
Bakhshandehpour said he instructed his brand’s sommeliers and bartenders to make a quarter of spirits and wine non-alcoholic within five years, up from around 10% now. The group is experimenting with mushroom-based drinks in regions where such psychedelics are legal.
While more people embrace GLP-1 weight loss drugs — research group RAND found nearly 12% of American adults have used them — consumers also increasingly want to know “what they’re putting in their bodies,” reflecting a cultural focus on wellness.