The Zero-Proof Opportunity: Building a Nonalcoholic Beverage Program That Drives Profits (And Community)

Key Takeaways:

• The NA margins are real. Nonalcoholic beverages can achieve 65-75% profit margins—often outperforming traditional cocktails due to lower input costs and no alcohol taxes.
• Design for substitution, not sacrifice. Your NA menu should mirror your cocktail program’s sophistication. Price mocktails closer to cocktails (not sodas) to reflect the craftsmanship.
• Stay true to your concept. A tequila bar should serve zero-proof margaritas, not virgin piña coladas. Integrate NA options alongside alcoholic ones—don’t exile them to a separate section.
• Train your team. Servers should recommend your signature mocktail with the same confidence as your craft cocktails.
• Track the data. Know what’s selling, what your margins look like, and which dayparts are your NA sweet spots. This program should drive profitability, not just satisfaction scores.

Dry/Damp January is over. The guests who discovered they don’t need alcohol to enjoy a night out? They’re not going back.

We’ve been tracking the “sober curious” movement for a while now, but here’s what caught our attention this month: 23 percent of consumers participated in some form of moderation or abstinence during January, according to new research from Curion. 

And for the segment they’re calling “Damp January” participants—those reducing but not eliminating alcohol—is less of a detox and more of a marker of a new lifestyle. 

For operators building menus for Q2 and summer, this presents a huge opportunity to rethink how craft nonalcoholic drinks function in your restaurant.

A Look Inside The Nonalcoholic Beverage Market

Let’s start with what’s happening in the market. Nearly half of Americans—49 percent—planned to drink less alcohol in 2025, a 44 percent increase from 2023, according to NCSolutions. Among Gen Z, that number jumps to 65 percent who plan to cut back, with 39 percent adopting a dry lifestyle entirely.

But “dry” doesn’t mean these diners aren’t interested in going out. Quite the opposite, in fact. They want the ritual, the experience, the beautifully garnished glass in hand while they’re catching up with friends. They just don’t want the negative side effects they’ve either seen or experienced from alcohol. 

The financial opportunity here is staggering. Venues generating around $2 million annually saw an average revenue boost of $95,000 simply by expanding their nonalcoholic drink menus, according to Restaurant Dive. 

And when you think about it logistically, it makes sense. A well-crafted $11 mocktail often yields higher profits than a $14 cocktail because you’ve eliminated the cost of spirits and alcohol taxes. Industry reports suggest nonalcoholic beverages can achieve profit margins of 65-75 percent when priced strategically.

Read that again: better margins than booze.

Who’s Ordering These N/A Drinks?

This is where it gets interesting. The Curion research reveals a sophisticated behavioral split that smart operators can leverage:

The Wellness-Driven Moderators (Damp January participants): These guests want balance, flavor, and social enjoyment. They’re not making a statement—they’re making a choice. Nearly 50 percent of younger consumers (18-34) actively choose nonalcoholic options when they’re out, and they want those options to feel special, not punitive.

The Identity Shifters (16 percent of the market): This small but powerful segment has fundamentally redefined their relationship with alcohol. They’re driving demand for sophisticated nonalcoholic spirits, wines, and mocktails. For them, zero-proof isn’t a compromise—it’s a preference.

The Practical Abstainers: Designated drivers, pregnant women, those on medication, people with early morning meetings. They’ve always existed. The difference now? They expect better than a Shirley Temple (as they should).

Here’s what all these guests have in common: they’re your value diners. They’re willing to pay for experiences that feel authentic to their choices. What they won’t pay for is feeling like an afterthought.

What The Push for Nonalcoholic Drink Options Means for Summer Menu Engineering

As you’re building your beverage strategy for the rest of the year, consider this: the summer season brings extended dayparts, outdoor dining, and longer visits. Guests lingering on your patio at 3 p.m. aren’t necessarily looking for a glass of rosé. They’re looking for something that feels like an occasion.

Design for substitution, not sacrifice. Katie Fellows, SVP of Strategic Insights at Curion, nails it: “guests don’t want fewer reasons to dine out—they want better options once they’re there.” Your nonalcoholic menu should mirror your cocktail program’s sophistication. A mocktail section that reads like a children’s menu tells guests you don’t take them seriously.

Craft with intention. House syrups, botanicals, shrubs, teas, spices—these ingredients cost pennies and signal care. Mocktails on menus grew 48 percent in just the past year, according to Datassential, and that growth shows no sign of slowing. The brands winning this moment are treating nonalcoholic options as a creative challenge, not a compliance checkbox.

Price like you mean it. Fellows advises pricing nonalcoholic cocktails closer to alcoholic cocktails—not sodas—to reflect craftsmanship. This isn’t gouging; it’s acknowledging the labor, creativity, and premium ingredients that go into a thoughtfully made drink. Your guests understand this. Another Broken Egg Cafe prices their mocktails around $6 compared to $10-11 for cocktails, but achieves similar profit margins because of the lower input costs.

How This Movement Can Help You Capture New Markets

Thoughtfully building out a non-alcoholic drink program at your restaurant isn’t just about retaining guests who’ve decided to drink less. It’s about capturing guests who weren’t coming to you at all.

The lunch crowd seeking sophisticated alternatives for business meetings. The fitness-minded brunch guest who wants something special after their workout. The extended family gathering where not everyone drinks. The parents who want to enjoy a nice dinner without worrying about their drive home.

These are incremental covers. Incremental check averages. Incremental loyalty.

And for the value-conscious diner we’ve written about before—the guest who will absolutely spend money but wants that spend to mean something—a thoughtfully crafted mocktail program signals that you get them. You’re not just another restaurant trying to upsell them a drink. You’re a restaurant that understands their dining experience.

Tips To Have N/A Drinks While Staying Authentic to Your Concept

Here’s where a lot of operators stumble: they bolt on a generic mocktail menu that has nothing to do with their restaurant’s identity. A craft cocktail bar shouldn’t be serving virgin piña coladas any more than a fine-dining steakhouse should have a kids’ menu mocktail section.

Think about what your brand promises and extend that promise into your nonalcoholic offerings:

• If you’re a tequila-forward concept: Zero-proof margaritas and palomas using agave, fresh citrus, and jalapeño-infused syrups
• If you specialize in seasonal, farm-to-table dining: Mocktails built around seasonal shrubs, herb infusions, and local produce
• If you’re a whiskey bar: Explore NA spirits like Ritual Zero Proof that mimic the complexity of bourbon for old fashioned-style drinks
• If you’re a neighborhood gathering spot: Keep it approachable—elevated lemonades, spritzes, and refreshers that still feel premium

The key is integration, not segregation. List your nonalcoholic wines on your wine list. Feature your zero-proof cocktails alongside their boozy counterparts. Mark them clearly—”zero-proof” or “NA”—but don’t exile them to a separate section.

How Can You Build an N/A Drink Program for Q2 and Beyond? 

The research is clear: the demand to consume less alcohol isn’t a January-only behavior. Curion’s data strongly suggests Damp participants maintain moderation habits year-round. Fellows recommends keeping at least two to three nonalcoholic cocktails available year-round, rotating seasonally to maintain interest.

Our recommendations for the coming quarters:

1. Audit your current beverage program. What percentage of your menu serves guests who don’t want alcohol? If the answer is “water and Coke,” you’re leaving money on the table.
2. Train your team. Servers should be as confident recommending your signature mocktail as they are your craft cocktails. The awkward “we have Diet Pepsi” moment kills the guest experience.
3. Think dayparts. Weekday dining, wellness-minded brunches, lunch meetings, extended happy hours—these are your nonalcoholic sweet spots.
4. Market with intention. Use inclusive, non-judgmental language. “Drink your way” or “moderation-friendly menu” works. Anything that feels preachy doesn’t.
5. Track the data. Know what’s selling, what’s not, and what your margins look like. This program should contribute to profitability, not just customer satisfaction scores.

Set Your Menu “Free”

The restaurants that win the next decade will be the ones that understand a fundamental shift in what “going out for drinks” means. For a growing segment of the population, the drink is incidental to the experience. The experience—the ritual, the connection, the feeling of being cared for—is everything.

A smart nonalcoholic beverage program is about recognizing that the guests who choose zero-proof are often your most intentional guests, your most loyal guests, your most valuable guests.

They’ve chosen how they want to live. Show them you’ve made a choice about how you want to serve them.

That’s how you turn Damp January into a very profitable Q2. Need help building a financial strategy that supports your restaurant’s growth? Connect with The Restaurant CPAsto find an accounting partner who understands the industry from the inside out.