Written by: Michael Kill, NTIA, CEO
Full Nightlife Article Newsletter series.
Once a hallmark of bustling city bars and weekend revelry, vertical drinking – the practice of standing in packed venues to enjoy inexpensive drinks – is rapidly fading into a relic of the past. This cultural shift reflects broader trends shaping the night time economy, where premiumisation, sustainability, and experiential offerings are redefining consumer expectations. Meanwhile, licensing and regulatory frameworks seem increasingly out of step with these evolving dynamics.
The demise of vertical drinking can be attributed to several factors. Vertical drinking thrived in an era where affordability and convenience were the main drivers of social drinking. Patrons crammed into spaces designed for maximum capacity rather than comfort, with venues focused on selling high volumes of low-cost beverages. However, this approach has lost its allure as consumer priorities have evolved.
Modern consumers increasingly seek quality over quantity. They are willing to pay more for expertly crafted cocktails, artisanal beers, and wines with a compelling backstory. This shift towards premium products inherently values the experience of enjoying drinks in a comfortable and curated environment over simply consuming alcohol.
The global trend towards healthier lifestyles has also influenced drinking habits. Lower-alcohol options, alcohol-free beverages, and an emphasis on moderation align poorly with the high-volume, high-energy nature of vertical drinking spaces. Additionally, today’s consumers crave more than a drink; they want an experience.
Activity-led venues such as bowling alleys, immersive cocktail bars, and live performance spaces offer entertainment that transcends traditional pub culture.
Despite these shifts, licensing policies and regulations have largely remained tethered to outdated paradigms. Many licensing systems are still calibrated to accommodate high-capacity, volume-driven establishments rather than the nuanced demands of modern, premium-focused venues. This inertia creates friction for businesses attempting to innovate. For instance, restrictions on capacity, opening hours, or alcohol service can stifle venues that emphasise seated, experience-driven offerings. Licensing authorities often fail to account for the reduced social and economic risks associated with these more refined operations.
The night time economy is evolving into a sophisticated ecosystem where provenance, sustainability, cultural significance, and ethical considerations hold sway. Consumers increasingly value transparency and environmental responsibility. Venues that showcase locally sourced ingredients, sustainable practices, and eco-friendly designs resonate deeply with these priorities. Bars and restaurants are also becoming platforms for creativity and community. Whether through collaborations with artists, themed pop-ups, or cultural programming, these spaces are contributing to a broader cultural dialogue. From fair-trade spirits to inclusive hiring practices, ethical considerations are a key differentiator for modern venues. Patrons are drawn to businesses that align with their values, reinforcing the importance of authenticity and responsibility.
The regulators must evolve alongside the industry. Flexibility is needed to introduce more considered licensing models that reflect the operational differences between high-capacity bars and premium, experience-led venues. Innovation should be encouraged through incentives for businesses that prioritise sustainability, cultural contributions, or community engagement. Modernised capacity planning is essential to shift the focus from maximum capacity to ensuring safe, enjoyable, and meaningful experiences for patrons.
The death of vertical drinking is not just a change in how we consume alcohol; it is a reflection of a broader cultural and economic transformation within the night time economy. As consumers demand more refined, professional, and ethical offerings, the regulatory frameworks that govern this space must keep pace. The future of the night time economy lies in its ability to balance creativity and sustainability, proving that drinking establishments can be much more than venues for consumption – they can be hubs of culture, connection, and community.
