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The World of Hybrid Restaurants

Jay Bandy • April 28, 2022

Contactless payments, digital ordering systems, ghost kitchens, and now hybrid restaurants.

Over the past few years, restaurants from all over the world have been incorporating different types of technology and new changes. Since COVID-19, restaurants have joined in the trend of contactless payments, contactless ordering systems, ghost kitchens, and now hybrid restaurants.

What is a hybrid restaurant?

A hybrid restaurant is a mixed-format restaurant and has become increasingly popular over the last few years. Hybrid restaurants provide food sections in which customers can sit down and enjoy a meal or a drink, and then they can make their way to the market section where they can buy “take-home and takeout and satisfies grab-and-go appetites.” 1 Some hybrid restaurants offer merchandise, cookbooks, and kitchen equipment as well.

“Some would offer counter service at breakfast or lunch before switching to full service for dinner. Others would have an area dedicated to grab-and-go orders with servers still working the tables.” 2

What this means for restaurants

Foodservice and retail have changed vastly, and customers have more choices to choose from and are adjusting to these new and fast changes, but with excitement rather than fear. Customers from all over today’s generation are looking forward to more custom experiences, convenience, and multi-functionality. 3

According to the National Restaurant Association, the restaurant-market idea is appealing to consumers. In fact, in a recent survey conducted by the National Household Survey, “48 percent of adults said they would buy fresh, uncooked food items from restaurants.” 4

Flexible Spaces

With all businesses, but especially restaurants, it is important to adapt to the quickly changing market in today’s generation, because customer needs are always evolving. For most restaurants, space is not always flexible and restaurant owners do not have the time or money to easily expand or rearrange.

However, hybrid restaurants allow for restaurant owners to use multi-functional furniture and dividers to separate their market and dining area as they please. 5 This can also be used depending on the time of day, group size, event, and more. Hybrid restaurants also give restaurants the chance to create a space for entertainment such as dancing or musical areas.

For example, Boston Pizza Flagship has been recently redesigned to fit a hybrid model.5 According to SLD, “Shikatani Lacroix developed a hybrid concept that included a separate bar and restaurant sections, as well as a Team Room.” 6

This design allows customers to choose what type of experience they would like to enjoy such as a full-dining experience or using it for large group gatherings and watching sports. They can also do it all at once if they wish to.

Multipurpose

The hybrid model also gives restaurant owners the chance to have various purposes. Restaurant owners can combine different elements in their restaurants to allow customers to feel different experiences or combine them into one.

For example, restaurants can combine the experience of fine dining with fast-casual. This can help with speed and convenience, while also providing an elevated design for customers to enjoy.

Pop-up restaurants and food truck modeled restaurants are also growing popular. Restaurants can combine the feel of street food with fast-casual dining. Restaurant owners can combine the feel of being outside near a food truck, while customers can have a place to sit and eat inside after getting their food.

SLD provides an example of a San Francisco hybrid modeled restaurant called Corridor. According to SLD, Corridor offers fast-casual, casual dining, and fine dining experience. If customers want to enjoy a fast-casual experience, all they need to do is order at the counter and receive their food. 7

If they want to have their food delivered to them, they can use a beacon and pay at their table. Lastly, they also have the option of making a reservation for a more upscale experience.8

Trendiness

Customers are always attracted to new concepts, and hybrid restaurants are one of them. Hybrid restaurants get the chance to catch up with the latest trends much quicker than a regular restaurant can.

Hybrid restaurants can quickly update their menu items from whichever concept to best fit the needs and trends that customers value at the time. They can also reposition themselves and change the design of their hybrid concept faster than other restaurants as well.

Hybrid restaurants also can run a ghost kitchen and expand as a virtual brand to keep up with the fast-changing technology in today’s world.

Let us know your thoughts

As restaurant owners take in the latest changes and incorporate them into their restaurant, it gets a little harder to keep up with everything. However, new concepts and changes are always important to keep in mind. Hybrid restaurants seem like a fun concept and restaurant owners can produce some creative innovations to connect with consumers.


Goliath Consulting Group is a restaurant consultancy group based in Atlanta, Georgia. For more information on our services email us at getresults@goliathconsulting.com

By Jay Bandy August 24, 2025
The Phenomenon From Baby Boomers to Gen Z: A Generational Divide The current decline in alcohol consumption is not a fleeting trend but an accelerating, long-term generational shift. A Gallup poll shows that the percentage of American adults who report drinking alcohol has fallen to 54%, the lowest point in three decades. This trend is particularly pronounced among the younger generation. According to research, the share of adults under age 35 who drink has dropped by 0 percentage points, from 72% in 2001-2003 to 62% in 2021-2023. This suggests that today’s young people are the least frequent drinkers in recent decades. These changes are starkly reflected in consumer spending data. In 2021, U.S. Gen Z consumers spent just over $2.2 billion on alcohol, the lowest amount compared to all other age groups. Further reports reveal that 21.5% of Gen Z abstains from alcohol entirely, while 39% consume it only on occasion. Additionally, Gen Z consumes about one-third less beer and wine than previous generations. These figures not only validate a bar owner’s concerns but also signal that the traditional “party-hard” model is becoming obsolete. This is not a temporary fad but a lasting trend that requires a fundamental business model adjustment. Taking a Different Path: The Unexpected Impact of Economic Factors When exploring the reasons for Gen Z’s reduced drinking, a commonly overlooked factor is the economy. While many attribute the shift to changing values, a senior beverage analyst at a drinks company put it bluntly: “Gen Z ain’t got no money”. Compared to previous generations, today’s young people have lower incomes, less stable employment, and many have yet to reach the legal drinking age. Their disposable income is naturally limited. Interestingly, data indicates that Gen Z spends the same proportion of their after-tax income on alcohol as Millennials did at the same age. This suggests that Gen Z isn’t inherently averse to drinking; rather, they simply have less money to spend. For bar owners, this means the challenge isn’t just about “selling alcohol” but about convincing consumers that, within a limited budget, “going out for a drink” is a worthwhile and high-value experience. This forces businesses to reconsider their value proposition: Are they selling a beverage or an unparalleled social experience?   The Drivers Health Above All: Prioritizing Physical and Mental Well-being Gen Z’s focus on physical and mental health is at an unprecedented level. They are more aware of alcohol’s negative effects than previous generations and see it as a potential health risk. A Gallup poll found that 53% of U.S. adults now believe moderate drinking is harmful to health, a view driven primarily by young people. Two-thirds of respondents aged 8 to 34 hold this view. Crucially, mental health awareness plays a central role in this trend. While Gen Z reports higher rates of anxiety and depression, they are also more willing to seek professional psychological help. They openly discuss their sobriety journeys on social media platforms to manage their emotions and cope with stress. For this generation, alcohol is no longer a tool for “relaxing” or “de-stressing.” Instead, it can be a stumbling block to emotional stability and quality sleep. In fact, 34% of Gen Z cite mental health as a reason for abstaining, and 46% say they are “simply not interested in drinking”. Therefore, bars can no longer position themselves solely as places of “indulgence” but must adapt to consumers’ pursuit of “self-care” and “wellness.” The Digital Footprint and the Desire for “Control” The digital age has fundamentally altered the rules of socializing for young people. The ubiquity of smartphones and social media creates a constant state of digital surveillance. In 1991, 64% of U.S. high school seniors had been drunk at least once, but by 2024, that figure had dropped to just 33%, with two-thirds of the decline occurring after 2012, the year smartphones became widespread. Today, the risk of leaving a “digital footprint” after getting drunk has evolved from a social faux pas into a permanent public record that is impossible to erase. This pushes Gen Z to be more cautious in social settings and to “maintain control and avoid embarrassing moments that might be documented online”. This desire for “control” stands in stark contrast to the “indulgence: mentality of previous generations. If bars continue to promote a “binge drinking” culture, they will be out of sync with Gen Z’s core values. Instead, creating an environment that encourages safe, mindful consumption and offers curated social experiences will meet their new demands. The Shift in Socializing: From “Drinking” to “Doing” Gen Z’s social life is being redefined. They prefer to socialize at home or at friends’ houses rather than at traditional bars and nightclubs. They are actively creating “activity-centered” social patterns, such as escape rooms, rock climbing, pottery classes, or immersive art exhibitions. In addition, “wellness-focused gatherings,” such as yoga classes and “sober raves,” are increasingly popular among Gen Z. These activities all provide an interactive environment for people to connect without relying on alcohol. The bar’s status as a social venue is facing unprecedented competition. It is no longer the only “place to go” and must now compete with a wide range of engaging activities. Successful bars need to transform their space from a simple drinking spot into a social hub that offers unique, non-alcohol-centric experiences. The business model must shift from selling beverages to selling a curated social experience. The Unexpected Impact of Demographics A subtle, but often overlooked, factor is a fundamental demographic shift. Traditionally, men, especially white men, have been the main drivers of alcohol consumption volume. However, their share of the drinking population is declining, being replaced by women and people of color—two groups that have historically consumed less alcohol. Today, women make up most alcohol consumers under the age of 25, and their average consumption is only half that of men. Furthermore, Gen Z is the most racially and ethnically diverse generation in U.S. history. This indicates that even if individual drinking habits within each demographic group remain unchanged, overall, per-capita alcohol consumption is bound to decline due to these population shifts. This is a structural, permanent challenge, not just a change in consumer sentiment. Key Drivers of the Sober Shift Health & Wellness Awareness of negative health effects; connection to anxiety and depression; viewing sobriety as a form of self-care. Economic Factors Lower disposable income; price sensitivity; a desire to save money. Digital Culture Fear of a permanent digital footprint; desire to maintain control; normalization of sober culture on social media. Social Norms & Demographics Shift to activity-centered socializing; rise of non-alcohol-centric events; a demographic shift towards groups who historically drink less (women, people of color).   The Strategy Rethinking the Product: Embracing the “No & Low” Menu Gen Z’s beverage choices reflect their preference for novel flavors and convenience. Studies show that spirits and Ready-to-Drink (RTD) products are the most popular categories among Gen Z, while traditional wine and beer have a mixed outlook. More than half of Gen Z drinkers “often or sometimes” choose non-alcoholic beers, mocktails, or low-ABV cocktails when socializing. Non-alcoholic beers like Heineken 0.0 and Guinness 0.0 are even considered “trendy” brands by Gen Z. Therefore, a bar’s inventory model must expand beyond traditional alcoholic beverages. Bars should position themselves as “beverage destinations,” not merely “alcohol providers.” Specific suggestions include: • Develop a premium mocktail program: Offer complex and visually appealing non-alcoholic cocktails to satisfy Gen Z’s desire for flavor exploration. • Curate a selection of non-alcoholic and low-ABV options: Create a diverse menu of non-alcoholic beers, spirits, and low-alcohol beverages. Highlight “better-for-you” qualities such as natural ingredients, organic fermentation, or functional ingredients like vitamins and adaptogens. By making non-alcoholic beverages a premium, core product line, a bar can directly meet Gen Z’s demand for health, self-care, and flavor innovation. Redefining the Venue: From “Intoxication” to “Experience” The shift in Gen Z’s social patterns requires bars to reimagine their reason for existence. If a bar is just a place for “drinking,” it will be unable to compete with at-home gatherings and new types of event venues. A bar must transform itself from a simple drinking spot into a place that offers a unique social experience. • Host activity-based social events: Organize regular weekly or monthly events centered around activities, such as trivia nights, board game nights, live music performances, or mixology workshops. • Cultivate a “third space” atmosphere: Create an environment that prioritizes community and genuine human connection. Make people feel comfortable and safe, whether they are drinking or not. This atmosphere provides a unique social experience that cannot be replicated at home, offering consumers a valuable reason to go out. Marketing Strategies for the Modern Drinker Traditional top-down advertising is largely ineffective for Gen Z, a generation of digital natives. They place greater trust in recommendations from friends, family, and relevant influencers. Successful marketing must be a two-way conversation that builds an authentic community around the brand. • Embrace a digital-first strategy: Invest heavily in social media platforms like TikTok, Instagram Reels, and YouTube. Produce short, shareable video content, such as 5-second cocktail recipes or fun behind-the-scenes clips. • Collaborate with micro-influencers: Partner with micro-influencers who have authentic niches in areas like mixology, wellness coaching, or food. • Encourage user-generated content (UGC): Create branded hashtags, filters, or remixable music to inspire users to post original content related to the brand. Use an authentic, creative, and inclusive tone, focusing on celebrating human connection and mindful drinking, and avoid outdated “party-hard” or “macho” imagery. The goal of a bar’s marketing should not be to convince Gen Z to drink but to show how the bar’s beverages and atmosphere can enhance the lifestyle they seek—one focused on health, fun, and authentic connection. Gen Z’s Preferred Drink Categories (Alcoholic and Non-Alcoholic) Preferred Categories Spirits (especially white spirits like tequila and flavored vodka), Ready-to-Drink (RTD) canned cocktails, hard seltzers, mocktails, non-alcoholic beers (e.g., Heineken 0.0), adaptogen-infused spritzers. Flavor variety, convenience, health consciousness, self-care, suits at-home socializing. Mixed or Declining Categories Traditional beer, red wine, heavy spirits. Lower consumption among women and people of color; does not align with “health” or “control” narratives; considered less novel in taste than spirits and RTDs. Goliath Consulting Group is a restaurant consultancy group based in Atlanta, Georgia. To learn more about our services including menu development, business strategy, marketing, and restaurant operations, contact us at http://www.goliathconsulting.com or email us at getresults@goliathconsulting.com
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