Bars across the United States are noticing a change: fewer young patrons, particularly those born in the late 1990s and early 2000s, are opening tabs. So, is this shift concerning for bartenders? Derek Brown, founder of a hospitality consulting agency in Washington, DC, shares his perspective.
“Yes, closing a tab after every drink can be quite bothersome for bartenders. It’s annoying,” he says. Bartenders have many tasks to juggle during a shift. If they have to close a tab repeatedly throughout the night for each drink order, it becomes time-consuming and frustrating.
Interestingly, this trend isn’t new; Brown points out that every generation has its own idiosyncrasies. While it may not seem troublesome to customers, repeatedly closing tabs can be a headache for bartenders, especially during busy hours. When a customer orders a cocktail and then immediately wants to settle up, it interrupts the flow of service. “You have to go back and forth to the point-of-sale machine, which takes time and is disruptive,” he explains.
Yet, some younger patrons argue that this method helps them better control their alcohol consumption. Brown acknowledges the upside: “If you settle up every time, it does help you keep track of how much you’re drinking.” He emphasizes the importance of “financial responsibility” when out.
Additionally, a 2023 Gallup poll revealed that only 62% of adults under 35 drink alcohol, marking a 10% decrease over the last two decades. This trend contributes to less bar tab activity, which might explain why some younger drinkers prefer to pay for drinks individually rather than opening a tab.
Katie Fitz, a recent graduate of Florida State University, offers her take on the situation. “It really depends on the night,” she says. If she knows she and her friends will be staying put for the evening, they might leave a tab open. But, if there’s a chance of moving around, she opts to pay as they go.
In the popular bar where Fitz worked, tabs weren’t allowed, leading to most customers paying with cash. However, those who used cards had to make sure their minimum was above $10. This approach has implications not just for the bartenders but also affects the bar’s bottom line, with transaction fees eating into profits.
Doug Kantor from Merchants Payments Coalition notes that credit card fees typically range from 2% to 4% per swipe, resulting in significant costs for bars. In 2024, these fees reached record levels, totaling $187.2 billion—a staggering 70% increase since the pandemic. This shrinking profit margin could indeed spell trouble for bar owners.
