It's no secret that the Aussie hospitality industry is struggling in a post-COVID world, but they're facing a new threat that could push them even further to the brink. The youngest workers in the country aren't as interested in drinking alcohol as their older counterparts and that's sparked a warning to employers to change their tactics if they want colleagues socialising with each other.
Fewer workers having a schooner or two (and maybe a quick and easy meal) with each other could have a big impact on pubs across the country, particularly in CBD areas. Australian Restaurant & Cafe Association CEO Wes Lambert told Yahoo Finance that many venues are already on their knees.
"For an industry that has been under threat for nearly all of 2024 any further decrease in spending will certainly push more businesses to the walls," he said.
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He highlighted a recent report from CreditorWatch that indicated one in every 11 hospitality businesses are expected to close their doors forever in the next 12 months.
"For many of the businesses that have unfortunately closed in 2024, they are saying that these are the worst conditions that they have ever seen, sometimes in a 30 or 40-year career," he explained to Yahoo Finance.
"The owners of hospitality businesses around Australia are often mum and dad businesses...many are barely even making the minimum award rate. Some are working for free."
So any trend that creates less foot traffic in these establishments could be the final nail in the coffin for many.
What's happening with the post-drinks tradition?
For decades, workers of all ages went to the pub around the corner after quitting time to blow off some steam, get to know each other beyond the "where's that email" chat, and have some fun.
But there have been a bunch of factors coalescing that could have reduced this pastime activity.
You've got people working from home, engaged in sporting activities, picking kids up from school, exercising, and other post-work commitments.
There's also the cost-of-living crisis impacting personal budgets, making it difficult to justify a few bevvies at the pub.
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And then you've got young people, particularly Gen Z workers, who not only aren't keen on a beer or wine after 5pm, but at all.
Research from the Australian Institute of Health and Welfare found that from 2007 to 2019, the number of people aged 14 to 17 who didn't drink increased from 39 per cent to 73 per cent.
For people aged 18 to 24, it rose from 13.1 per cent to 21 per cent.
This rise in being teetotal is not only being seen in Australia but in Europe and the US as well.
A new report from Lancaster University think tank Work Foundation and the International Alliance for Responsible Drinking was released last week and it declared workplaces needed to pivot if they want to keep staff socialising with each other.
"Whilst 'after work drinks' have long been a staple of socialising and workplace culture, in recent years there has been a shift in attitudes towards the appropriateness of centring workplace social activities outside of working hours or around the consumption of alcohol," the report noted.
It gave some recommendations for employers to help adapt to the changing trends:
Change the description of events from 'drinks' to 'socialising'
Have socialising events at different times of the day instead of after work
Provide non-alcoholic drinks to cater for everyone or pick a venue that has non-alcoholic drinks available
Aussie workers discuss why they shun post-work drinks
Employees revealed some of the reasons why an after-work drink with colleagues did not appeal to them in response to a TikTok questioning the practice.
"The fun and humour has been completely sucked out of my team so as soon as we can leave we do," said one Aussie.
"The f**k I want to spend my time drinking with people I only just barely tolerate," wrote another.
A third added: "My workplace does it, but I don’t participate. I’m out of there at knock off time everyday, pretending to like and socialising with a bunch of people I have only a professional relationship with isn’t my idea of a good time."
"Not really, corporate work has become incredibly sterile in the last decade. People are beyond boring these days, especially where I work, not even any friendly banter," said a fourth.
Others said they would only do it if it was on the company credit card or if it was a few hours before 5pm.
Many also said having drinks on a Friday got in the way of their own weekend plans.
But those who did enjoy some drinks with colleagues said it was great to speak to them in an out-of-work setting and improved relationships that made work better.
Lambert told Yahoo Finance that companies who want their staff to socialise should consider doing team events during work hours if the post-work drinks have lost their mojo.
"Breakfasts, lunches, afternoon teas," he said. "We think those are as meaningful and certainly can create that work community equally as after-work drinks.
"If you can afford to meet the high cost of living times, go out and support your local restaurant, cafe, pub or club, we absolutely recommend it."
Socialising during work hours was another recommendation from the Work Foundation's report to ensure "that those with long commutes or caring responsibilities outside of work hours do not miss out".
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