The Hill

The problem with ‘woke’ businesses: Good intentions don’t pay the bills.

By October 26, 2026No Comments

(This column originally appeared in The Hill)

In April, Denver’s only lesbian bar closed. Its owners cited financial difficulties after a disagreement between management and employees. In 2025, a bar in Los Angeles called The Ruby Fruit also closed after a fire and alleged complaints from employees about its workplace policies. That same year, a “radically inclusive” feminist bookstore in New York closed, citing financial, health and structural difficulties, as well as “racist, classist violence from ‘neighbors.’”

Here in my hometown of Philly, we saw in 2022 the closure of progressive cafe Mina’s World, a coffee shop emphasizing social justice, and more recently Marsha’s, the city’s “first women’s sports bar.”

A 40-year-old gay bar in Salt Lake City saw its demise last year after employees tried to unionize and its owners couldn’t navigate the financial effects of continuing protests. But some good news: the Last Ditch bar in western Massachusetts, made globally famous over the summer after suffering severe backlash from its community over its mask-required policy, is still hanging on, despite facing significant financial strain and continued public backlash.

There’s a pattern here worth confronting: The failure rate of bars, for example, is already high. Unfortunately some business owners are making it even harder for themselves. They are building their identities around progressive causes and discovering that ideological solidarity doesn’t always translate into financial sustainability.

Starting a progressive — or some may say “woke” — establishment may sound like a great idea at first. But do these founders have a business education? They don’t seem to do the market research necessary to justify the investment (yes, women’s support has gained in popularity but are there enough local women’s sports fans to support a bar?). Like one of the owners of The Last Ditch, who admitted she was living out of her car, they are oftentimes under-capitalized. Do they have a financial plan?

Good intentions don’t pay rent. Solidarity doesn’t make payroll. And even the most passionate community can’t keep a business alive if customers aren’t spending enough money.

Progressive businesses seem to attract a certain kind of crowd that makes it harder for them to succeed. The crowd is younger, mobile and less reliable. Being young, they’re oftentimes more idealistic than realistic — perhaps even a little naive. The employees demand rights and guarantees that cannot be guaranteed, and seem to frequently fight the very people who employ them. Their customers come in from the fringe and spend too little money and too much time getting involved in the establishment’s mission, policies and operations instead of just enjoying the product.

According to a recent Bentley-Gallup survey, 53 percent of Americans say businesses should stay out of public debates altogether. That doesn’t mean people oppose the causes themselves. It means many consumers would rather businesses focus on what they’re supposed to be selling. People are tired of all the fighting, protesting, dissenting and arguing. They just want a beer! Is that so hard to ask?

I’m sure that not all woke businesses fail. It’s that businesses fail when their political mission becomes more important than their customers, employees, financial discipline and profitability.

Not a few blocks away from Marsha’s stands Woody’s, a popular gay bar in Philly. It’s been around for decades. I am sure that its owners support many of the causes that these other failed establishments support. But they clearly understand how to run a business.

They get that their bar needs to be inclusive of everyone, which is why many people I know, straight and gay, go there to drink and dance late night on a Saturday. They’re not asked to wear a mask, sign a petition or — good God — watch the WNBA. There’s no judgment. No politics. Just beer and music.

Starting a business to advance a cause (think Patagonia) is perfectly fine. But expecting that cause to keep the business alive is another matter entirely.

Businesses are meant to generate profits. They need customers from all walks of life who spend their money. They need employees who won’t discriminate based on someone’s political beliefs (and they can take that money and use it to support their cause, like so many of us do). As Don Draper famously said, “that’s what the money’s for!”

Chick-fil-A has become one of America’s most successful restaurant chains despite its history of controversy over gay rights. Its executives understand something that too many politically driven entrepreneurs forget: You don’t have to agree with your customers to take their money.

You want to fight racism? Support transgender rights? Save the planet? That’s fine. Build a business that makes money, treats its employees fairly and welcomes customers who don’t necessarily share your views. Then use your profits to advance whatever cause you believe in. Because if your business fails, you’re not helping anyone. And your landlord couldn’t care less how progressive you are.