Gen Z Spending Statistics: A Guide for Bar Owners
Do you hear that? It’s the sound of opportunity knocking, and Gen Z is the bandleader. As the largest, most dynamic consumer class, their spending habits are outpacing prior generations and remixing the nightlife industry’s fortunes. With karaoke software ready to help venues hit revenue high notes, it’s time to tune up and match Gen Z’s rhythm for success.
Understanding Generation Z Demographics and Market Size
Generation Z describes people born from 1997 to 2012, making them aged between 12 and 27 in 2025. Gen Z represents 25% of the global population, about 2 billion young consumers worldwide. In the UK alone, 12.7 million Gen Zers are ready to shape the spending landscape, while the US boasts 68 million. Today's Gen Z consumers are digital natives, coming of age with smartphones and social platforms as standard.
Gen Z's global spending power is already at $450 billion, working out to an average of $8,894 per person in 2023. The anticipated share is set to skyrocket, by 2030, Gen Z’s spending potential is projected to reach $12 trillion, outpacing previous generations and making them the richest generation in history.
Currently, Gen Z accounts for 17.1% of global expenditure, lower than their population share. The “broke generation” myth reflects their stage in life: many are students or young professionals just starting their careers, a factor complicated by student debt and mean and median spending still catching up with older generations. Their influence, however, is only set to amplify in the near future.
Gen Z Bar and Restaurant Spending Patterns
Young consumers aged 16-24 in the UK spend an average of £68.02 per week in bars, pubs, and restaurants, 68% more than the average consumer and dramatically higher than older demographics. Let’s break it down:
Ages 35-44: £45.75 weekly
Ages 55+: £21.52 weekly
Ireland’s Gen Zers spend €122 monthly on eating and drinking out, showing cost-conscious student behaviours and a focus on value alongside entertainment.
Visiting venues is a mainstay for Gen Z:
33% of 18-24-year-olds go out for drinks at least weekly, compared to a 24% average
73% of 18-21 Gen Z visit bars weekly, compared with 63.8% of 26-30-year-olds and 58% across all consumers
Karaoke software for businesses can amplify competitive socialising and drive growth, helping venues maintain loyalty and outpace prior generations in attracting repeat spenders.
Alcohol Consumption and Spending Trends
Let’s clear up the often asserted myth: Gen Z is not abandoning alcohol entirely. In fact, 73% of Gen Z at legal drinking age have consumed alcohol in the last six months, a jump from 66% in early 2023, though still lower than the 78% adult average.
However, this generation prizes moderation, alcohol and health categories. Statistics reveal:
26% of Gen Z (16-24) abstain from alcohol, compared to 15% of Millennials
40% limited alcohol intake in 2023
44% actively seek out sober-friendly nightlife
When Gen Z does drink, preferences stray from tradition:
47% opt for cocktails, 44% for spirits, and 35% favour smaller but premium portions (craft beers, cocktails)
48% seek out low-ABV options
Demand for alternative beverages is the highest spending growth area: sales of non-alcoholic drinks surged by 33% (2020–2023), 23% of Gen Z tried non-alcoholic spirits, and 50% prefer non-alcoholic drinks for socialising.
Karaoke nights featuring mocktails and alcohol-free options harmonise with Gen Z’s diverse tastes, karaoke and drinks help venues unlock new streams of revenue and reinforce brand loyal communities.
Social Media Influence on Venue Selection
Social platforms are the main stage for venue discovery:
Gen Z places significant influence on peer recommendations and authentic experiences over traditional advertising:
35% were influenced by social media on their last food adventure
55% engage more with brands via influencers
TikTok drives menu discovery, Instagram is essential for creative visuals, and YouTube lets brands land lasting impressions.
Karaoke events become social content goldmines, venues can maintain loyalty, drive repeat visits, and hit the right notes in shareability.
Experience-Driven Consumption Trends
Gen Z’s consumer class prioritises memorable live experiences. Travel, dining, and entertainment claim significant influence, live entertainment is the third highest spending category, even during economic uncertainty.
Competitive socialising is booming:
64% played entertainment games in the last month
93% joined competitive socialising activities
80% would pick pubs with karaoke, themed nights, or live music over traditional venues
Gen Z’s anticipated share of the market makes karaoke software a largely untapped lever for venue owners to capture vibrant spending potential.
Superior venue atmosphere matters:
Premium food and WiFi are twice as important for Gen Z as for older generations
Outdoor spaces and flexible seating boost satisfaction
Quick digital order/pay options are game changers
Karaoke nights can help venues increase bar revenue, drive repeat visits, and preserve loyalty in the same age group.
Spending Categories and Budget Allocation
Spending power catch for Gen Z is impressive:
Snacks (32%) and entertainment (26%) are priorities for younger Gen Z
Food and dining out tops lifestyle choices (56%)
Travel/holidays follow at 51%
Entertainment and leisure commands £581 per month on average
Dining out is central; 71% of Gen Z have skipped holidays, and 13% cut back on takeaways and clothes shopping to afford restaurant visits.
Gen Z employs cost-saving tactics like ordering from kids’ menus (44% cite money-saving) and insists on paying only for what they ordered, showing a pragmatic approach to managing disposable income.
How To Capitalise On Gen Z's Spending Power
Gen Z represents key report findings for revenue:
£857 million per week spent in UK hospitality
£68.02 weekly per Gen Z consumer
82% now visit competitive socialising venues more than last year
Successful industry adaptation means integrating diverse beverages, including low/no alcohol, upgrading tech for seamless ordering, developing "Insta-worthy" environments, and offering entertainment beyond traditional drinks.
Effective social media marketing: Authentic social posts, influencer-led campaigns, values-driven messaging, interactive experiences, and mobile-optimised systems ensure brands meet Gen Z’s unique expectations.
Karaoke software emerges as a key growth area, driving fun, repeat visits, and boosting spending power for venues eager to thrill the largest and richest generation yet.
Future Projections and Strategic Considerations
Every year, more Gen Zers enter the workforce, with typically higher median spending and disposable income. By 2030, Gen Z will contribute the most dynamic demand growth and become the richest generation, making up 75% of luxury buyers alongside other generations such as Millennials.
The hospitality sector must prepare for moderation trends, the growing preference for premium yet accessible experiences, and full technology integration. Brand loyalty, driven by values and digital touchpoints, is set to drive growth in the industries building the future.
Closing Thoughts
It’s time for bar owners to let Gen Z take the mic. From digital-first payment preferences to social-powered venue discovery and sustainable, value-driven consumption, Gen Z's spending habits are shaping nightlife’s future. Adopting karaoke software and tailoring offerings will enable businesses to drive growth, maintain loyalty, and ensure every night feels like a chart-topping hit. Raise a glass (or a mic) to a new era of revenue and relevance.
At Lucky Voice Karaoke for Business, we help bars, pubs and venues bring the magic of karaoke to life with plug-and-play systems that turn casual drinkers into mic-dropping regulars. If you’re ready to see how our karaoke software can boost your bottom line, we’d love to show you how.
