Their is a new wave of behavior around drinking in public which could have a major impact on the alcohol and cannabis industry.

In bars across the country, a subtle shift is underway: younger patrons, especially Gen Z and Zillennials, are increasingly saying no thanks to opening a tab. It’s not about being antisocial—it’s about financial control, digital habits, and a shifting relationship with nightlife. The younger generation is increasingly turning away from alcohol. A portion are favoring marijuana for relaxation and socializing. Health consciousness, mental wellness, and shifting cultural norms drive this trend.

Unlike older generations who were more comfortable running a tab and settling up at the end of the night, Gen Z and Zillennials are hyper-aware of where their money is going in real-time. Growing up in the aftermath of the 2008 financial crisis and amid rising costs of living, this generation approaches spending with caution. Mobile banking, budgeting apps, and real-time transaction alerts have made them more vigilant. Opening a bar tab? That’s an invitation to overspend.

There’s also the trust factor. Horror stories of mystery charges, lost credit cards, or bars adding gratuities without consent have circulated widely on TikTok and Reddit. Many in this demographic prefer to pay per drink or use digital wallets like Apple Pay or Venmo, minimizing risk and maximizing transparency.

Technology plays a role too. While bar tabs require handing over a physical credit card—something that feels outdated to a smartphone-native generation—Gen Z prefers the immediacy and security of tapping a phone or using a QR code. Bars that still rely on old-school POS systems may seem out of step.

Culturally, going out doesn’t necessarily mean bingeing at a bar anymore. Many younger adults are opting for sober-curious lifestyles or limiting alcohol consumption, and when they do drink, they prefer to keep things low-key and affordable. Also, they see xannabis is seen as a safer, more mindful alternative, aligning with their preference for personalized, low-risk experiences over traditional, high-impact substances like alcohol.

For bar owners, this trend is a wake-up call. Offering easy, transparent, and tech-forward payment options—like mobile ordering and contactless checkout—can help retain Gen Z patrons. Those who resist these shifts risk alienating a generation that values financial autonomy over tradition.

The bottom line? For Gen Z and Zillennials, closing out a tab one drink at a time isn’t just practical—it’s personal.