How Gen Z’s bad bar etiquette is hurting businesses

Gen Z doesn’t know how to act — at work, in gyms, in movie theaters — and apparently not at bars, either. 

Their latest social faux pas? Not opening bar tabs, according to The New York Times. Instead, Gen Zers, many of whom are now old enough to legally drink, are opting to close out after each drink, no matter how many rounds they order or how long they stay. 

The phenomenon was first noted in 2023 and, to the dismay of US bartenders, it hasn’t lost its buzz.  

Why are youths anti tabs?

For several reasons. One being that they’re drinking less — a 2023 Gallup poll found the number of US adults ages 18-35 who said they ever drink dropped 10% over the past two decades to 62% — so keeping a tab open may seem excessive.    

They’re also: 

• More accustomed to quick tap-and-go digital payment options, which have become commonplace across bars and restaurants.  
• More cautious about their spending: One 20-something bargoer told NYT that closing out “does a lot mentally to stop you from indulging,” while another said keeping an open tab increases their anxiety.

This has real business implications

Opening a tab is standard bar etiquette in the US, and Gen Z’s aversion to the practice is doing more harm to businesses than just annoying bartenders. Per Adweek:

• Bars incur an average fee of 34 cents per credit-card transaction, based on NerdWallet data, which quickly adds up after hundreds of swipes. 
• It stretches bartenders thin, eating up time they could be putting toward serving other guests by having to run back and forth to ring up the same customers over and over. 
• Plus, (as the kids have figured out) running a tab usually leads to more drinking — up to 35% more, according to Visa data.

What can bars do?

One option: cater to older customers. The same Gallup poll found drinking among Americans ages 55+ increased 10% over the same period, and Gen X in particular reportedly consumes more alcohol than any other generation.

Or scold them — bartenders who spoke to NYT said being direct with Gen Zers about starting tabs can help inexperienced barflies, who might not know any better, be better patrons. 

After all, someone’s gotta teach these youngin’s how it’s done.