The Devil’s Martini at the Waldorf Astoria New York. | Photo courtesy of Waldorf Astoria New York.
Grabbing a drink at the storied Peacock Alley lounge in the Waldorf Astoria New York is not for the weak of budget.
A classic martini, for example, falls in the $30 to $36 range. At the high end, that might include the Devil’s Martini, which pays homage to “The Devil Wears Prada 2,” currently in theaters. It features Grey Goose Vodka, Sakura vermouth and hibiscus flower extract, giving it a crimson hue. And it’s garnished with a rare baby mountain peach from Japan, which is green, like an olive.
But all of the martinis at the Waldorf are premium priced by design, using top-shelf bottles and bespoke glassware, and served with the bar’s signature spiced nuts and house-made Cheez-Its—all in an undeniably swank setting.
It’s an example, however, of how the price of cocktails is pushing into a new stratosphere, and not only in New York City, but across the country.
In Los Angeles, Chicago and even smaller markets like Raleigh, North Carolina, a party of two ordering cocktails can easily drop $50 before they’ve even ordered an appetizer.
At Dominique Crenn’s Lounge at Bar Crenn in San Francisco, all cocktails are $20 and up. Same at the Seattle bar Canon, though shared cocktails are $22. (The Burger King, a concoction of Four Roses Bourbon, Monkey Shoulder, pineapple and chartreuse, serves two to four.) At Kimball House in Decatur, Georgia, the eponymous house martini made with Murrell’s Row Gin starts the list at $16—plus a 4% employee wellness fee added to all checks, according to the website. Specialty options (“Extra Fancy”) top $25.
And the rise in prices appears to be shifting consumer behavior.
Alcohol consumption is at a record low, according to Gallup polls. The percentage of adults in the U.S. who say they consume alcohol fell to 54% last year, the lowest in Gallup’s 90 years of tracking drinking habits.
For young adults, that rate has fallen from 59% in 2023 to 50% in 2025, indicating they are drinking even less than their middle-aged and older counterparts.
And those who do drink say they are drinking less. Among drinkers responding to the Gallup survey, the average number of drinks consumed over the prior week was 2.8, the lowest since 1996. That was down from 3.8 drinks in 2024.
The Gallup poll indicated consumers are moving away from alcohol for health reasons, with research now indicating even moderate drinking can have a negative effect.
But others watching the trend say affordability is most certainly a factor.
In March, a survey of 1,000 adults by Zappi found that rising prices are pushing many consumers to shift to drinking at home or pre-gaming a night out to cut down on costs.
About 38% of respondents said they are drinking more at home to cut down on spending, and 40% said rising alcohol prices affect their decision to go out and how often, with 27% saying they pre-drink to avoid spending.
“It’s a financial strategy for a lot of people,” said Nataly Kelly, chief marketing officer for Zappi. “It’s a clear signal of this that about 3 in 10 consumers are specifically saying that they’re trying to avoid paying higher prices at venues. And that goes up to 4 in 10 among people who report feeling pressure on price.”
What’s more, the survey indicated that consumers are buying fewer drinks when they arrive at the restaurant or bar.
“That means restaurants are no longer competing just with each other, they’re also competing with the living room,” said Kelly.
The bar at the new Rosebud in Raleigh, North Carolina. | Photo courtesy of Mark Terry.
Just how much cocktail prices have risen in recent years is difficult to quantify.
Prices, of course, vary widely by market and by drink. And many restaurants and bars take a barbell approach, with specialty cocktails featuring high-end ingredients pushing up averages.
According to data from Technomic’s Price Pulse, the average price of a Manhattan, for example, is $16.07 nationally, and that average has actually declined 2.3% since the first quarter last year.
The most expensive market for a Manhattan was not, in fact, Manhattan, but Las Vegas, where the average price was $20 in the first quarter of this year.
The national average price of an Old Fashioned was $12.91, also down 1.7% year over year. The most expensive market for that cocktail was Atlantic City, where the average price was $18.41.
A martini, meanwhile, was $18.63 on average across the country, a price that increased nearly 8% over a year ago. Rochester, New York, was the most expensive market for that drink, with an average price of $26.98.
Margaritas were more affordable, on average, at $10.18, a nearly 2% increase over the prior year. But several states recorded significant increases in margarita prices. In Alaska, margarita prices jumped more than 33%, and the cost was significantly up in Idaho (26%), Pennsylvania (15.3%) and Minnesota (15%) year over year.
FinanceBuzz did a survey of margarita prices nationally for Cinco de Mayo, and the average from that survey for a basic house margarita was $10.61, a nearly 6% increase from last year and a more than 25% increase since 2022.
At the margarita bar Daisy in Los Angeles, margaritas range from $18 to $22, but these are not the typical sugary sweet blends made from a mix. Daisy is a sister bar to Mirate in Los Angeles, named one of North America’s 50 Best Bars.
Beverage director Max Reis taps authentic Mexican ingredients and techniques to create drinks that truly elevate, from a classic typically made with 100% agave Tequila Tromba Blanco from the highlands of Jalisco (or mezcal), to the more specialty variations, like the Mangoneada, with mango, pasilla mixe chile, Derrumbes Cenizo (a premium mezcal), Oaxacan mango brandy, lime and chamoy.
Meanwhile, in Las Vegas, Rosa Mexicano is featuring an Organic Margarita made with actor Matthew McConaughey’s Pantalones Organic Tequila and a black salt rim, which is priced at $20. Guests can upgrade with a Boot Shooter add-on for another $5.
The Boot Shooter at Rosa Mexicano. | Photo courtesy of Rosa Mexicano.
The reason cocktail prices are climbing is simple. The beverage side of any menu is impacted by the same pressures that have increased food prices: higher ingredient and labor costs.
But alcohol tends to be a higher-margin item, and every cocktail denied is a lost opportunity.
In a conversation with “Mad Money” host Jim Cramer about the decline in alcohol consumption, Major Food Group chef and co-founder Mario Carbone said the answer for restaurants is to offer more in the way of an experience.
“It’s important to listen to a generation and think, ‘What are they saying with their dollars?’” Carbone said.
Younger diners are definitely drinking less, which he attributed to health trends—though he said that’s a pendulum that swings back and forth.
“But what they’re also saying is, ‘We’re willing to spend a disproportionate amount of money on experience. Travel, dining. If you give me an experience—give me something intangible. Give me an experience and I will be free with my cash,” said Carbone.
Lele’s Roman in Brooklyn, for example, is offering cocktail flights that give diners lower-cost entry points, but also the option for an adventure.
The menu includes “baby Negroni” pours and cocktail flights. One 2.5-ounce Baby Negroni is $9, for example, and a flight of three is priced at $22. The flight includes three variations: a classic with Tanqueray gin, bitter, and sweet vermouth; a Bianco with Hendrick’s, Luxardo Bitter Bianco, italicus and Lillet; and a Robusto with Six O’Clock gin, Luxardo Bitter Rosso, sweet vermouth and PX (Pedro Ximenez, a sweet, dark dessert sherry).
The highest-priced specialty cocktail at Lele’s is the Posale Tropical at $22, which features Su Casa Mezcal Reposado, banana liqueur, caramelized pineapple and lime.
In Raleigh, North Carolina, restaurateur Patrick Shanahan (Watts & Ward, Peregrine, Capulet Cocktail Club) earlier this year opened Rosebud Cocktail Lounge, a listening bar spinning vinyl with a state-of-the-art hi-fi sound system.
Cocktails range from $15 for a Brandy Alexander to $18 for a Nakashima Old Fashioned made with bourbon, Okinawa black sugar and ube.
Coming soon, however, is an immersive omakase cocktail experience featuring three 3- to 4-ounce cocktails “responsibly paced for both palate and experience,” according to press materials, built around a certain theme.
The “Leave it to the bartender” selection was billed at $50, though a restaurant representative said that might change.
“Rosebud breaks from traditional cocktail bar conventions,” Shanahan said in a statement. “Like with music, some want to be led, and others want exactly what they want. We honor both approaches.”
Rosebud is a listening lounge. | Photo by Mark Terry.
And then, of course, there’s the Happy Hour, which has long been the battleground of steakhouses, in particular.
The Capital Grille last year launched its first Happy Hour (“Capital Hour”) Monday through Friday from 3 to 6 p.m., featuring $10 cocktails in some locations, from a Maker’s Mark Old Fashioned to a Straight Up martini made with Wheatley American Craft Vodka or Bombay Gin (and a bleu cheese-stuffed olive).
In cities like Chicago, Capital Hour pricing is $12 for those cocktails. That’s down from $17 to $21 for cocktails outside those hours, when the options are a bit more elevated. A $20 Manhattan, for example, features double-oaked Woodford Reserve bourbon and rye, with Carpano Antica Vermouth and Amarena cherries.
Fogo de Chao, meanwhile, features an All-Day Happy Hour with $10 cocktails, including a classic Brazilian caipirinha made with Silver Cachaca and muddled limes, alongside more-premium options ranging from $15 to $19.50.
The latter is a Caramelized Pineapple Old Fashioned with Bulleit Rye, muddled with caramelized pineapple, orange and an Amarena cherry.
Fundamentally, however, Kelly of Zappi said restaurants and bars need to be aware that consumers are being more strategic with their alcohol purchases because of price.
“So how can these restaurants think, ‘I’m not just going to sell another drink. I’m going to earn that. I’m going to make sure I deliver a valuable experience that the alcoholic beverage might be a part of,’” she said. “All of these restaurants are competing now for share of occasion, not just share of wallet.”
