The hospitality sector is undergoing significant transformation in 2025, and the changing preferences of Gen Z consumers have a key part to play. No longer satisfied with traditional food and drink offerings, this generation, born between the late 1990s and early 2010s, is seeking personal, immersive, and shareable experiences, choosing hospitality venues which offer them something unique. This generational shift in behaviour is reshaping the landscape for pub and restaurant operators across the UK and, for franchisors and franchisees, presents both a challenge and a golden opportunity.
As outlined in our recent Pubs & Restaurants Market Review 2025, the property market remains resilient, despite broader economic pressures. Demand among operators looking to acquire hospitality sites continues to grow, and this is in part fuelled by Gen Z’s appetite for experiential leisure venues, and the lucrative opportunities for operators to capitalise on this. This includes franchise brands embracing innovation and providing something which resonates with younger audiences.
Franchise operators who once relied on consistency and replication are now being called on to deliver uniqueness. From themed pop-ups and curated events to competitive socialising activities, successful franchise concepts are those with the flexibility to tailor experiences to their communities, while maintaining core brand values.
And, for the younger generation of pub and restaurant goer, digital touchpoints are no longer a perk, they’re essential. Franchises that offer seamless online ordering and booking, app-based loyalty schemes, and social media-friendly environments are thriving. As a result, Gen Z customers often become unofficial brand ambassadors, sharing their experiences online and helping to drive organic growth.
The rise in demand for low and no-alcohol options among Gen Z customers is also prompting operators to diversify their menus and rethink beverage strategies. Meanwhile, hybrid hospitality venues which combine food, drink, entertainment, and overnight accommodation are gaining traction.
Gen Z’s experimental mindset means they’re typically less brand-loyal, and more open to trying new concepts. For emerging franchise brands, this presents a prime opportunity to tap into an audience looking for the next ‘big thing’.
In the first half of 2025, at Christie & Co we saw a notable increase in offers, deals agreed, and completions on hospitality businesses compared to the same period in 2024, signalling strong confidence in the sector’s resilience. With interest rates easing and M&A activity expected to rise, the second half of the year offers fertile ground for further expansion and innovation.
Whether you’re a franchisor considering your concept or a franchisee looking for the next exciting opportunity, aligning with Gen Z’s values of authenticity, experience, and digital innovation is key to long-term success in the hospitality sector.
