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Why Gen Z’s “No Tab” Habit Is Costing Your Bar Staff Time (and Tips)

Gen Z’s habit of refusing to open bar tabs is more than just a generational quirk. It is slowing down service, frustrating bartenders, and cutting into your bottom line. In this post, we explore why this trend matters for operators and how you can keep service smooth while meeting guest expectations.

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Jack Hendrix
CEO, OpenTab
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June 30, 2025
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4 min read
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Why Gen Z’s “No Tab” Habit Is Costing Your Bar Staff Time (and Tips)

If you run a bar or restaurant, you have probably seen it. Younger guests pay drink by drink and refuse to open a tab. It is not just a minor annoyance. It is a real operational problem that slows service, frustrates staff, and hurts your bottom line.

Here is what you need to know about this trend and how it is impacting your team.

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Gen Z’s Payment Habit: Pay as You Go Every Time

Recent coverage in The New York Times, Adweek, and Fox News points to a clear shift in guest behavior.

  • Gen Z bar-goers often refuse to open a tab and prefer to pay for each drink as they go.
  • They cite financial anxiety, surprise charges, and a preference for digital wallet payments.
“It stresses me to have an open tab… you don’t want surprise charges at the end.” — The New York Times

The Hidden Cost for Bartenders

This change might seem harmless, but it creates real operational headaches behind the bar.

More time per order

Bartenders run two to five separate transactions per guest in a single night instead of one at the start. Each payment means repeating the same process over and over.

Longer lines and worse service

Every extra transaction takes precious seconds. Multiply that by dozens of Gen Z customers and service speed drops noticeably on busy nights. Bartenders spend more time at the payment terminal than actually making drinks.

Higher frustration for staff

Articles note that bartenders are so fed up they are resorting to pressuring guests to open tabs just to keep things moving. (NY Post)

Why It Hurts Your Bottom Line

Less time for upselling

  • They cite financial anxiety, surprise charges, and a preference for digital wallet payments.

Fewer drinks sold per hour

  • Slow lines mean lost sales when guests walk away rather than wait.

Higher payment processing costs

  • Each card swipe carries a fee. Multiple small charges eat into margins more than a single tab.
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What Operators Can Do

Gen Z’s payment habits are not going away. But there are ways to adapt.

Modernize the tab experience

Many refuse traditional tabs but will use digital tabs they can track on their phone. OpenTab lets guests see charges in real time so there are no surprises.

Speed up payment at scale

OpenTab connects directly to your POS. No extra terminals. No repeated swipes. Guests can close out with one tap and staff saves valuable time.

Focus on service, not payments

Let bartenders do what they do best. Make great drinks and deliver great experiences without the payment bottleneck.

The Future of Bar Service

Gen Z is not being difficult for fun. They are cautious spenders who want control and transparency. But their habits expose the weaknesses of old-school tab systems.

If you want to keep service fast, staff happy, and guests coming back, it is time to rethink how you handle tabs.

OpenTab was built to solve this exact problem.

  • Fewer transactions.
  • Happier bartenders.
  • Better guest experiences.

Bring the bar tab into the 21st century and save everyone a lot of time.

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