TEMPE – During the past few years, alcohol consumption in the United States has undergone a noticeable shift. Alternatives such as marijuana have become more popular, and Americans cite economic struggles and health concerns as reasons to quit drinking.

According to research from Gallup in 2025, 54% of U.S. adults reported that they consume alcohol – marking a 4% decrease from the previous year and the lowest percentage of American adults who say they drink since the survey’s inception in 1939. 

Mill Avenue in downtown Tempe is considered one of the hotspots for nightlife at Arizona State University with bars and restaurants lining both sides of the street.

Recently, the area has undergone major renovations including repaving roads, sidewalk widening and adding new electrical lines as part of the city’s “Refresh Tempe” initiative. 

As Mill Avenue continues to transform and redefine itself, local businesses are looking to adapt to the trend that people are drinking less.

Julian Wright, founder and CEO of Fork & Dagger, a local hospitality group that operates many restaurants and bars around the state, agreed that people are drinking less. He said bar owners are adapting by making their physical spaces more appealing instead of “just four walls, tap panels and some cheap liquor.”

“I think Mill is going in a direction that will cater to both college kids and local residents who aren't in college equally, which I think is super healthy,” said Wright, 57, whose businesses include Devil’s Hideaway, Pedal Haus Brewery and Carmen. “We have a lot of people coming to Tempe, whether it's for a convention, football game, Innings Festival or art festivals that aren't looking for a chug and puke college bar experience.”

Pedal Haus Brewery in Tempe, Ariz. on Sept. 8, 2026, owned by Julian Wright.

Photo by Aiden Hanley/Cronkite News

“I've been around Mill 35 years, including my four years at ASU,” Wright said. “I've seen it ebb and flow many, many times. I mean, (we’ve) been through 9/11, the Great Recession and COVID. I've kind of seen it all and I've seen it change.”

The city’s nightlife has gone through major changes with spots closing down. Some business owners hope to find success in the restaurant and bar industry by developing new ways to succeed without a brick-and-mortar location.

Matthew Wachter, 25, graduated with a business degree from ASU in 2023 and kickstarted his own line of ready-to-drink, pre-mixed shots called Social Solutions in October 2024.

“My idea behind Social Solutions was that I lived on Mill, I had the bartending background and before we would go out to the bar, I'd make everyone mixed shots,” Wachter said. “I was like,  ‘Why isn’t anyone making this?’ ”

The locally produced alcohol line is sold by 27 retailers around the Valley, with 13 of its retailers in Tempe. While the business looks to eventually expand beyond Arizona, Wachter is still focused on expanding the brand within the college community.

“I think we haven't hit Tempe as hard as we've wanted to,” Wachter said. “I think there's still potential for us to sell even more products before moving on.”

Social Solutions owner Matthew Wachter at the company's production warehouse in Tempe on Sept. 8, 2026.

Photo by Aiden Hanley/Cronkite News

Wright says even though the number of people who say they drink alcohol is declining, people still want to enjoy a night out.

“People might be drinking a little less but I'll tell you what – I don't care what age you are, it gets pretty boring sitting at home every night,” he said. “You're not going to meet a diverse group of people if you just stay in your living room bubble.”

Andy Moreno, 24, is a junior at ASU studying sports science and performance programming. As he has turned away from going out to bars over the past few years, Moreno says he doesn’t have the urge to go to Mill Avenue.

“I find myself better without alcohol,” he said.

“I think our generation (is) focusing more on our sleep (and) more on these health benefits,” Moreno said. “We’re more aware of every critical thing in our life at this point compared to maybe the last generation where they were probably [going to] Mill Avenue.”

William Corbin, full time professor at ASU in the Department of Psychology and the head of the Behavioral Alcohol Research for Clinical Advancement Lab, believes that a combination of factors has led to less people drinking. He said that younger generations have a general awareness that “moderate alcohol use is bad for your health.”

“Rising costs also likely play a role and legalization of cannabis use in many states also provides an alternative to alcohol use for some,” said Corbin, 57, who is the incoming editor-in-chief of the journal Psychology of Addictive Behaviors. “Although research on the impact of GLP-1 medications on alcohol use is in the early stages, it is possible that increased use of these medications may also be impacting levels of alcohol use.”

Despite Social Solutions’ success, Wachter is aware that alcohol’s negative impacts could explain the overall decline of alcohol consumption.

“At the end of the day, alcohol is poison,” Wachter said. “Whether it's a skinny margarita or a regular margarita, you're still poisoning yourself no matter how you do it.”

This article first appeared on Cronkite News and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.