Pineapple Express closes as alcohol sales plummet in shifting market
Damon Wise has closed his Montclair, New Jersey restaurant, Pineapple Express, after struggling with shifting customer habits. The business initially relied on alcohol sales for most of its income, but changing trends in drinking behaviour made it unsustainable. A mix of health concerns, generational preferences, and new medications played a role in the decline.
When Pineapple Express opened, Wise expected 60% of revenue to come from alcohol and 40% from food. Over time, the balance shifted as fewer customers ordered drinks. The split first moved to 50% from each, then later to 70% from food and just 30% from alcohol.
Catering orders with cash bars also cut into alcohol profits. Meanwhile, national drinking rates dropped, with a 2025 Gallup poll showing only 54% of Americans consuming alcohol—a record low. Factors like increased health awareness, younger generations drinking less, and the rise of GLP-1 medications contributed to the decline. Despite efforts to adjust, Wise couldn't reverse the trend. With alcohol sales falling short, the restaurant's financial model no longer worked, leading to its closure in January.
The shutdown highlights how changing drinking habits are affecting businesses. Restaurants that once depended on alcohol revenue now face pressure to adapt. For Pineapple Express, the shift proved too great to overcome, ending its run in Montclair.