Bars & Nightclubs NAICS 722410

Sep 20, 2025 - Gen Z Won't Open a Tab

• Rather than starting a bar tab, Gen Z is more likely to close out and pay after every drink, no matter how many they may order during the evening, a trend that’s unpopular with and unprofitable for bartenders, Mashed.com reports. Gen Z’s pay-as-you-go attitude and the fact that twenty-somethings are drinking far less alcohol than their elders, is a problem for bartenders who rely on volume and speed to maximize their pay. Bartenders who must take time to close out after each drink is served, are delayed serving other customers, which can impact their tips, according to Mashed.com. Gen Z'ers are also more budget conscious and may feel uncomfortable opening a tab. Constantly closing out can hurt a bar’s bottom line in other ways. Every time a bartender swipes a customer’s credit card, the bar pays a fixed fee plus a percentage for that transaction.
• The One Big Beautiful Bill Act signed by President Trump on July 4th includes limited and temporary tax exemptions for tipped workers. Under the new deduction, effective for 2025 through 2028, qualified workers with a gross adjusted income of under $150,000 annually ($300,000 for joint filers) will be exempt from paying tax on tipped earnings up to a maximum of $25,000, according to the IRS. If a worker earns over $150,000 annually their tipped income will start to be taxed. The exemption is expected to cover the majority of individuals earning tips such as bartenders and wait staff. (By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before December 31, 2024.) The bill also includes a No Tax on Overtime provision with a maximum annual deduction of $12,500.

• Labubu dolls are revitalizing the nightlife scene at clubs in Brooklyn, NY (and beyond) where raves featuring the highly-collectible creepy plush monsters attract up to 800 people, Time Out reported in July. At late-night parties in East Williamsburg (often running from 11 p.m. to 4 a.m.), Labubu revelers pack the dance floor for Labubu mystery unboxing giveaways, high-energy DJ sets, and performances by K-pop dance crews, according to Time Out. With TikTok and Instagram fueling their popularity, the gremlin-like creatures have become a viral sensation and can fetch eye-popping sums from collectors. This summer Labubu rave parties and events are being held in clubs from Brooklyn, to San Antonio, to Honolulu.
• Employment by bars and nightclubs grew to a new high in July, up 5.4% compared to a year ago, according to the latest US Bureau of Labor Statistics data. Employment by alcoholic beverage drinking places has grown 17% over the past decade, faster than the 13% growth in overall private employment. The average industry wage rose 3.7% in July to $23.03 per hour, easing from its peak in May. With wages almost double that of a decade ago (up 99%) and employment at a record high, payrolls at bars and nightclubs have swelled. However, the industry's rising labor costs are supported by sustained consumer spending, with personal consumption expenditures (PCE) rising 2.6% year over year and 0.2% month over month in July, according to the Bureau of Economic Analysis.