Bars & Nightclubs NAICS 722410
Unlock access to the full platform with more than 900 industry reports and local economic insights.
Get access to this Industry Profile including 18+ chapters and more than 50 pages of industry research.
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
Jun 20, 2026 - Healthy Lifestyle Drinks
- The growing popularity of low- and no-alcohol beverages is creating new revenue opportunities for bars and nightclubs as consumers seek healthier alternatives to traditional alcoholic drinks, Bar & Restaurant News reports. While alcohol’s share of total beverage sales has declined in recent years, demand for functional beverages containing ingredients such as probiotics, electrolytes, vitamins, and protein, particularly among Millennials and Gen Z customers, has risen. Rather than replacing cocktails, these products are expanding beverage menus and giving bartenders new tools to create premium, visually appealing, and customizable drinks. Industry suppliers report growing interest in sophisticated zero-proof and low-ABV offerings that emphasize flavor, wellness, and social experiences. For bars and nightclubs, the shift toward zero-proof and better-for-you beverages offers opportunities to attract health-conscious consumers, designated drivers, and guests looking to moderate alcohol consumption while still participating in nightlife and social occasions.
- Studies show users of GLP-1 weight loss drugs drink less frequently and in smaller quantities, with declines in on-premise (including bars and nightclubs) alcohol spending, Just Drinks reports. Users' decreasing thirst for alcohol poses a long-term demand risk to the hospitality industry as it could create a structural decline in alcohol sales, especially among key demographics for premium products. Indeed, on-premise spirits sales were slightly negative in 2025, with alcohol sales falling in many markets nationwide. For bars and nightclubs, this signals lower overall sales volume, shifts in purchasing toward smaller quantities or fewer occasions, and increasing pressure on premium alcoholic beverages. At the same time, GLP-1 drugs reinforce broader trends toward health, moderation, and low or no-alcohol products, pushing venues to offer more non-alcoholic beverages, such as mocktails and NA beer.
- Neighborhood taverns are experiencing a revival across the US, serving as “third places” where people gather regularly for social interaction, drinks, and simple meals, The Wall Street Journal reports. Their revival is creating new opportunities for the bar industry, particularly in smaller towns and community-focused markets. Chefs and operators are increasingly leaving high-end urban restaurants to open or revive tavern-style venues that combine casual food, approachable drinks, and a strong sense of community. Taverns, which occupy the gray area between a bar and a restaurant, emphasize accessibility, serving beer, cocktails, and comfort food in relaxed settings where guests can linger, helping build consistent demand for alcohol sales, according to WSJ. Operators are also reserving space for regulars and walk-ins, reinforcing neighborhood loyalty. Overall, the resurgence of small-town taverns highlights growing demand for community-centered drinking establishments that prioritize relationships and repeat patronage over upscale dining experiences.
- Employment by alcoholic beverage drinking places grew 2.9% in April compared to a year ago, while the average industry wage was flat over the same period at $23.24 per hour, according to the latest US Bureau of Labor Statistics data. While average wages at alcoholic beverage drinking places have eased from their peak a year ago, they remain historically high. Sales for food services and drinking places rose 4.9% year over year in January, supported by rising consumer spending, but declined 5.1% from the holiday month of December, according to Census Bureau data. Looking ahead, sales for the US bars and nightclubs industry are forecast to grow at a 5% compounded annual rate from 2026 to 2030, faster 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
Vertical IQ Industry Report
For anyone actively digging deeper into a specific industry.
50+ pages of timely industry insights
18+ chapters
PDF delivered to your inbox
