Bars & Nightclubs NAICS 722410
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Industry Summary
The 39,100 bars and nightclubs in the US make most of their profits from alcohol sales. Nonalcoholic beverages, food and snacks, and entertainment services are additional revenue streams.
Regulatory Compliance
Because of the effect of alcohol on health, establishments that serve alcohol are highly regulated.
Competition for Leisure Time
People visit bars to socialize and be entertained, but new technologies are allowing many people to do those same activities from the comfort of their homes at a fraction of the cost of a typical night out.
Recent Developments
Jan 20, 2026 - Bar-Tering
- Barter systems are emerging as a powerful tool for bar owners looking to manage costs and strengthen local business networks, Bar & Restaurant News reports. By trading food, drinks, or event space for essential services, such as HVAC work, hood cleaning, plumbing, and carpet cleaning, bars can reduce cash outlays during slow seasons and improve cash flow stability. Third‑party barter exchanges track credits and transactions, making the process structured and low‑risk. Beyond financial relief, bartering helps bars build deeper relationships with nearby businesses, creating a mutually supportive ecosystem that can drive referrals, shared promotions, and long‑term loyalty. With global barter activity estimated at $12–$14 billion annually, the model is becoming mainstream. For bar owners facing rising operating costs, labor pressures, and seasonal revenue swings, barter systems offer a practical way to access services, preserve cash, and expand their footprint without increasing debt or overhead, per B&RN.
- Mocktails and liquor-free spirits now cost just as much, if not more, than alcohol, The Wall Street Journal reported in January. As participation in Dry January grows, with 4 in 10 patrons likely to take part, many guests are experiencing sticker shock. Premium NA programs, complex house‑made ingredients, and curated zero‑proof products are driving up costs, pushing some customers toward cheaper alternatives like club soda, teas, or NA beer, according to WSJ. For bars and nightclubs, this creates both opportunity and risk. Demand for sophisticated alcohol‑free options is clearly rising, but price sensitivity is increasing just as fast. Venues that over‑price NA offerings may see lower conversion or reduced check averages from sober‑curious guests who opt for water or soft drinks instead. Bar and nightclub operators will need to balance craft and cost, refine pricing strategies, and ensure NA menus feel intentional rather than exploitative.
- New data from drinks data provider IWSR shows that while Americans say they are drinking less, actual consumption has only slightly declined, with weekly averages hovering around 10-12 drinks per adult since the 1970s. Still, broader trends, such as fewer adults identifying as drinkers (down to 54%, the lowest in decades) and growing health concerns, signal a slow but steady cultural shift. For bars and nightclubs, this creates a challenging but nuanced landscape. The shrinking pool of drinkers, especially younger adults, means slower long‑term traffic growth and greater competition for a smaller customer base. Meanwhile, stable per‑capita consumption among those who do drink suggests that core patrons remain reliable spenders. Bars and nightclubs operators can adjust by expanding their low‑ and no‑alcohol options to court health‑conscious customers, and by leaning into experiential offerings (music, events, mixology) to offset declining casual drinking.
- Employment by bars and nightclubs grew 4.2% in August compared to a year ago, on par with its high in July, according to the latest US Bureau of Labor Statistics data. Meanwhile, the average industry wage rose 4.5% over the same period to $23.33 per hour, down from its peak in May. With wages almost double that of a decade ago (up 97%) and employment at record highs, payrolls at bars and nightclubs have swelled. However, the industry's rising labor costs are supported by rising sales at food services and drinking places, which grew 6.5% year over year in July, according to the Census Bureau. Looking ahead, sales for the US bars and nightclubs industry are forecast to grow at a 3.68% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to the latest Interindustry Economic Research Fund forecast.
Industry Revenue
Bars & Nightclubs
Industry Structure
Industry size & Structure
An average bar or nightclub has about 10 employees, $802,151 in annual revenue, and pays $190,000 in salaries.
- The US has about 39,100 firms with 401,424 employees and total sales of $31.4 billion.
- 72% of firms have fewer than 10 employees, but they account for just 31% of industry revenue and 28% of employment.
- Local/regional regulations make it difficult for national chains to operate in this segment; the 50 largest firms account for less than 8% of industry sales.
- National chains include Coyote Ugly, Voodoo Lounge, House of Blues, and Tao Group Hospitality.
- It is estimated that over half of startups will fail within the first three years, and around a quarter will fail in the first year.
Industry Forecast
Industry Forecast
Bars & Nightclubs Industry Growth
Source: Vertical IQ and Inforum
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