Fewer Drinks, More Dessert at Home: Inflation’s Impact on Indulgence

This December, holiday revelers are still flocking to bars and restaurants across the U.S. in droves.

However, they have been reining in their spending in two particular categories – drinks and desserts – and the owners and operators of these establishments have already begun to feel the impact.

Indulging in Dessert at Home

According to a recent report by Technomic, dessert prices on U.S. restaurant menus increased by 3.2% from 2023 to 2024, but America’s appetite for dessert hasn’t wavered – it’s merely evolved.

Americans have increasingly turned to store-bought sweets, with 39% of survey respondents buying pre-packaged desserts from retailers (up 4% from 2021) and 38% preferring to make them at home (up 5%).

These shifts have disproportionately affected the sales of each segment, hitting fast-casual restaurants the hardest with a 6% decline, compared with fast-food chains at 3% and casual-dining establishments at just 1%.

And consumer behavior has also evolved in terms of alcohol consumption.

More Mingling, Fewer Mixed Drinks

Meaghan Dorman, a director and partner of multiple New York City bars, told Reuters that, while December traffic has boomed per usual, her customers are ordering fewer craft cocktails in favor of more affordable options.

“You feel like you are busy all night, and we will be full all night, but revenues are down versus previous years,” Dorman added.

While many of these cost-conscious consumers are switching to cheaper liquor brands, others are drastically cutting back on alcohol or cutting it out altogether to save money on top of other motivating factors like improving their health.

Today, Americans who are looking to reduce their alcohol intake have more non-alcoholic (NA) options at their fingertips than ever before – and they extend beyond Shirley Temples or Arnold Palmers. From alcohol-free bitters and ready-to-drink cocktails to zero-proof rum and whiskey, the NA sector has continued to spill over with innovation in recent years, and it appears to be paying off.

U.S. sales of NA beer, wine, and spirits exceeded $565 million in 2023 – rising 35% from the prior year, according to data from NielsonIQ. And Grand View Research expects to see revenues continue to climb at a CAGR of 7.4% until 2030.

Among zero-proof categories, NA beer still retained the majority of the 2023 market share at 86.1%, while NA spirits were the fastest-growing segment with a year-over-year increase of 94%.

Gen Z is responsible for much of the decline in alcohol consumption, representing only 6% of total alcohol buyers. However, no single generation has a monopoly on the moderation, as NIQ data revealed that the 45-54 age demographic, as well as individuals earning more than $100,000 in annual income, tend to over index in their NA beverage consumption as well. Food Institute Focus

Starbucks Launches New Menu Laced With Global Flavors, Vegan Options

On January 3, Starbucks unveiled an updated 2025 winter menu, which features a slew of new, revamped, and returning food and beverage items that reflect recent shifts in consumer priorities and preferences.

Here’s a breakdown of its most noteworthy additions.

A Sip of Spanish Culture

Starbucks is infusing its espresso lineup with the bold flavors of Spain, incorporating two styles of the Cortado into its permanent menu – an addition that caters to the growing interest in global flavors among U.S. consumers.

The most traditional version, the Starbucks Cortado, is made with steamed milk and three ristretto shots of Starbucks Blonde Espresso via a method that uses the same amount of coffee grounds as a standard espresso shot but requires less water, resulting in a sweeter, richer flavor despite its shorter extraction time.

“Cortado has long been a request from customers in South Florida and Chicago, so we tested the beverage in select Starbucks stores last year in those areas to gather feedback from both our baristas and customers,” said Ricky Gonzalez, a beverage developer for the coffee giant.

Gonzalez added that the drink was met with an “enthusiastic response from the community, who appreciated the authentic take on the beloved beverage.”

For customers looking for a dairy-free option, the Brown Sugar Oatmilk Cortado pairs the same method and style of espresso with steamed dairy-free milk, brown sugar syrup, and a sprinkle of cinnamon.

Both styles will come in 8-oz. portions, with iced customizations completely off the table, according to a company representative who told Food & Wine that Starbucks intends to remain true to the classic flavor profile and rich cultural heritage of the Cortado.

A Pocketful of Plant-Based Flavor

In addition to its Brown Sugar Oatmilk Cortado, Starbucks is also expanding its vegan food offerings, adding a new Spicy Falafel Pocket as another permanent menu fixture inspired by international flavors.

The certified vegan item is a mashup of smashed falafel, creamy hummus, pickled onions, roasted red bell peppers, and a spicy herb sauce that’s served in a toasted slice of lavash flatbread – a staple ingredient in Western Asian nations like Turkey.

Including more plant-based options on its menu may be a smart move for Starbucks, given the growing population of consumers who feel ambivalent about eating meat.

In a recent study by the International Food Information Council, 83% of survey respondents said they’re concerned about factory farming, with another 50% wary of the health impacts associated with the overconsumption of meat.

Mixing up the Matcha Latte

On top of introducing several new items, Starbucks is also revamping the formulation of its matcha beverages, as well as its preparation method.

Previously, the chain used a pre-sweetened powder in its green tea lattes, which meant its level of sweetness was also pre-determined.

However, Starbucks has pivoted to sweetening the drinks with its classic syrup and using an unsweetened matcha powder, enabling patrons to customize both the sweetness level and sugar content of their lattes.

The company is also instructing its baristas to make the lattes with a specialized new part for its blenders that ensures a smoother, more consistent blend that’s free of clumps of matcha powder. Food Institute Focus

Bird Flu Update: Scientists Fear U.S. Headed Toward Red-Light Scenario

Experts say they’re increasingly alarmed about the spread of a highly parthenogenic strain of the bird flu, or avian influenza, that’s showing signs of mutating to be more contagious to humans.

The virus, known as H5N1, was first detected in migratory birds in the U.S. in January 2022, and since has been detected in wild birds in all 50 states and more than 1,300 commercial poultry flocks across the country. Now, it is showing up in cattle herds, swine and other animals.

The Wild Felid Advocacy Center in Shelton, Washington, issued a statement on Facebook recently, saying 20 large cats at the facility had died from the virus. Several others contracted the virus but survived.

“We are heartbroken to share that animal health officials have confirmed the presence of highly pathogenic avian influenza (HPAI) among over half of our wild felids as of December 2024,” the statement said, adding that cats are particularly vulnerable and can die within 24 hours from pneumonia-like symptoms.

Dr. Amesh Adalja, of the Johns Hopkins Center for Health Security, told MedPage Today the federal government hasn’t taken sufficient action against the outbreak, predicting the situation is likely to get worse in 2025.

“In September we were still in the 20s in terms of human cases, and now we’re in the 60s,” the doctor said.

Recent news doesn’t indicate a pandemic is inevitable, “but it means the virus is starting to find its way into humans and potentially tune itself to being a human pathogen,” Dr. Adalja said.

As of December 30, 66 cases in humans had been confirmed, with a severe Louisiana case triggering concerns the virus was mutating to make it more transmissible. Forty of the cases were linked to poultry or dairy operations.

“Deep sequencing of the genetic sequences from two clinical specimens from the patient in Louisiana was performed to look for changes associated with adaptation to mammals,” the Centers for Disease Control and Prevention said, adding, differences were found in the genome when compared to the strain in the Louisiana man’s flock, “suggesting [the changes] emerged during the clinical course as the virus replicated in the patient.”

Experts worry if a patient contracts both H5N1 and seasonal flu at the same time, the viruses could swap genes.

“If there are all these people getting infected, that provides so many opportunities for the virus to better adapt,” Angela Rasmussen, a virologist at the Vaccine and Infectious Disease Organization at the University of Saskatchewan, told The New York Times. “It has the potential to really harm a lot of people.”

“The traffic light is changing from green to amber,” said Dr. Peter Chin-Hong, a professor of medicine at the University of California, San Francisco.

“Many signs are going in the wrong direction,” Dr. Chin-Hong told NBC.

A study published in the journal Science found a single mutation in the strain found in cows could make the virus, which historically has had a 30% mortality rate for humans, highly contagious.

USDA has detected the virus in milk, prompting the agency to push for testing of dairy cattle – 901 herds in 16 states have tested positive so far. In California, more than 70% of herds have been infected.

In early December, the USDA’s Animal and Plant Health Inspection Service (APHIS) announced a nationwide milk testing program. The federal order requires the sharing of raw milk samples upon request and requires the mandatory testing of lactating cows before they can be shipped interstate.

As for poultry operations, APHIS said those seeking compensation for losses will have to undergo a biosecurity audit before restocking. Food Institute Focus