Bars & Nightclubs NAICS 722410

Dec 20, 2025 - Americans Are Drinking Less, But Not By Much

• 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.
• Bars and nightclubs may want to stock up on Michelob Ultra, now the top-selling beer in the US, having overtaken Modelo Especial, CNBC reports. The light lager claimed the title of the best-selling beer in retail channels in the 52 weeks ended Sept. 14, parent company Anheuser-Busch announced, citing data from consumer research firm Circana. The beer was also the top seller in bars and restaurants, according to Nielsen IQ data for the 52 weeks ended July 12. Michelob Ultra’s ascent returns an Anheuser-Busch beer to the top spot. In 2023, the company’s Bud Light brand lost the title to Modelo amid a consumer backlash against the brand and growing cultural cachet for Modelo. Previously, Bud Light had held the title as the US’s top-selling beer for more than two decades. Modelo brewer Constellation Brands recently reported weaker demand from Hispanic consumers, a key segment of its customer base, per CNBC.

• According to PwC’s 2025 Holiday Outlook survey, consumers expect their seasonal spending to decline on average by 5% this year compared to 2024, the first notable drop since 2020. More broadly, 84% expect to cut back over the next six months, citing rising prices, new tariffs, and the high cost of living, according to PwC. That’s unwelcome news for many hospitality businesses, whose sales typically peak during the festive winter holidays. While overall average consumer spending is expected to drop 5%, Gen Z respondents (ages 17 to 28) said they plan to cut their holiday budgets by 23%, much more than their elders. Gen Z is also drinking less alcohol than previous generations, a longer-term concern for bars and nightclubs.
• 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.