Bartenders Share Insights on Gen Z’s Drink-by-Drink Payment Trend

Bartenders Share Insights on Gen Z’s Drink-by-Drink Payment Trend

Across bars in the United States, younger patrons, specifically those born in the late 1990s and early 2000s, are opting to shut their tabs after each beverage instead of keeping a running tab open. Recent reports from prominent news outlets have highlighted this shift in drinking culture, stirring a conversation about its implications for bartenders and the dynamics of bar service.

To gain a better understanding of this phenomenon, Fox News Digital reached out to several bartenders to discuss their views on this changing habit.

“Is it bothersome to close out the tab after each drink? The answer is yes, without a doubt, it is frustrating,” expressed Derek Brown, a seasoned bartender and founder of Drink Company, a hospitality consulting firm based in Washington, D.C. He elaborated on how the frequent need to settle tabs interrupts bartenders’ workflows.

“As a bartender, you juggle countless responsibilities during your shift. When customers insist on closing out every time they order two or three drinks, it adds to your workload and takes valuable time off your service,” Brown explained. This sentiment resonates with many in the industry, who emphasize the importance of efficient service especially during peak hours.

Generational Habits and Tab Trends

Brown noted that while it may seem trivial to customers, the practice of settling payments after each drink becomes a real inconvenience during busy times. He recalled scenarios where a customer might order a cocktail, only for another customer to immediately request a tab closure. “You have to pause, go to the point-of-sale machine, and then return to making drinks. It’s a juggling act that can quickly become overwhelming, especially when you’re trying to maintain a cheerful demeanor,” Brown said.

Despite the frustrations, Brown acknowledged that younger generations are not the only ones who have tested the patience of bartenders over the years. He remarked, “Every generation has its quirks and preferences, and this is simply the latest trend. However, it does create a noticeable ripple effect in the bar’s operation.”

A New Approach to Spending

Some patrons argue that paying for drinks on a per-order basis allows them to better manage their drinking budget. Brown noted, “On the positive side, when you pay as you go, it helps monitor your alcohol intake throughout the evening, which is a responsible approach to drinking.” He praised this practice as a form of fiscal responsibility and self-control.

Yet, some customers have voiced concerns regarding leaving their credit cards unattended with bartenders. To combat this issue, bars have begun adopting systems where a customer’s card is swiped and returned immediately. Brown stated, “The right technology can minimize risks. With immediate return, patrons hold onto their cards while still enjoying a seamless transaction process.”

The Underlying Shift in Drinking Habits

Another factor potentially contributing to the decline in opened tabs among younger drinkers is a broader trend towards reduced alcohol consumption. A 2023 Gallup study revealed that only 62 percent of adults under 35 report drinking alcohol, marking a 10 percent decrease compared to two decades ago. This trend reflects changing social norms around drinking and reflects a more health-conscious mindset prevalent in today’s society.

The Personal Approach: Bartending Experiences

Katie Fites, a former bartender in Tallahassee and recent graduate of Florida State University, shared her personal take on opening tabs. “My decision to open a tab depends on the nature of my night. If my friends and I are planning to stay put for the evening, I’ll open a tab. But if we’re moving around and risk forgetting about it, I definitely won’t,” she explained.

Fites worked at a popular college bar notorious for not allowing tabs, resulting in a predominantly cash-paying clientele. In cases where card payments were made, there was a $10 minimum requirement, which further simplified transactions but could slow down service during busy nights.

The Impact on Bar Owners

According to Doug Kantor of the Merchants Payments Coalition, credit card payments pose another challenge for bar owners. Swipe fees remain a significant financial burden, averaging between 2 and 4 percent of the total transaction fee. In 2024 alone, these fees soared to a staggering $187.2 billion, a sharp increase of 70 percent since the pandemic. This rising tide of fees raises concerns regarding profitability for bar establishments, particularly in an already challenging economic climate.

As the dynamics of social drinking evolve, the implications for bartenders and bar owners remain profound. While customers might have different priorities around payment and tab management, the bartending community continues to adapt and maintain the cheerful service that defines the bar experience.

Navigating Change in Bar Culture

In the end, the changing attitudes towards tab payments reflect broader shifts in consumer behavior and societal norms. As younger generations navigate their drinking habits, bartenders must continue to find innovative ways to provide service while accommodating those evolving preferences.

Ultimately, every shift in bar culture brings new challenges and opportunities. Bartenders, while adapting to changing habits, will always remain at the heart of the social experience, ensuring that patrons enjoy their time without compromising service quality.