Young people are socializing differently now than in past generations. Instead of spending a night out having drinks in a bar or partying at a nightclub, Generation Z are opting for daytime plans like having breakfast, meeting for lunch or hanging out at a coffee bar. This trend is reflected by the latest report from the hospitality association in the Netherlands, Koninklijke Horeca Nederland (KHN), which shows a shift in customer preferences as well as an industry trying to adapt to newer times.
The panorama is changing. According to the KHN yearly report, the number of Dutch nightclubs and ‘brown’ cafés – which are similar to bars or pubs in other countries – has decreased by more than a fifth since 2020. According to KHN chair Marijke Vuik, the trend has been observable for some time, having started before the pandemic but accelerated by it, because nightlife was almost shut down for two years, AD newspaper reports. The change is especially visible outside the cities, with the number of night-time establishments declining more in rural areas. Conversely, the number of coffee houses, dessert shops and casual food establishments has increased from less than 1400 to more than 2000 in the Netherlands during the last year alone.
Gen Z consumers, the age group roughly below 28 years of age, seem to be exchanging the night for the day when it comes to social life, now enjoying brunch, coffee and a quick bite instead of bars, nightclubs and restaurants. The shift is forcing hospitality entrepreneurs and establishments to adapt in order to attract new-generation audiences, transforming traditional nightlife into experiences more akin to their tastes and expectations. The question is not only how to retain the current public, but how to change to attract younger consumers.
When asked about the current trends, Geeske Smid, night club manager in Groningen, explained that it comes down to a search for balance, managing price raises without pricing themselves out of the market, but also offering different experiences like ‘confetti, free polaroids and welcome shots’.
Curiously enough, as a whole, the hospitality industry is now bigger than ever, with a revenue growth of 3.8% and a total turnover of €33.9 billion, and a sales volume increase of 1% in the last year, according to KHN. While a fifth of entrepreneurs are still struggling with debt from the pandemic, and a third of businesses are not certain whether they will have viability in the coming year, there is a noticeable growth in casual eating establishments, coffee houses, festivals and takeaway and delivery places. The options on offer are shifting along with the generational trends.
In any case, the challenge for the hospitality industry calls for flexibility and resilience. On the one hand, the nightlife side of it is struggling with debt and overall less demand, representing a -21.39% decrease in overall establishments; on the other, there is a boom and an increase in revenue for specific sectors relating to daytime activities. As Marijke Vuik says: ‘Ten years ago, there weren’t as many coffee houses and lunch spots as there are now.’
From the consumer perspective, there is a generational shift that not only relates to the economy, but also to a greater social change in how young people experience leisure time, the available spaces within the city and relationships with each other.
Written by Juan Álvarez Umbarila