Bars & Nightclubs NAICS 722410

Apr 20, 2025 - Tariffs to Raise Bar Tabs

• Bar and nightclub goers will pay more for cocktails, champagne, and imported beers, while some brands will disappear from drinks menus as a result of President Trump’s reciprocal tariffs, Reuters reports. Analysts at UBS estimated that large publicly-held spirits makers would have to hike prices by between 2% and 5% to cover the tariffs, or absorb the cost and take a similar hit to operating profit, according to Reuters. With wine and beer consumption already falling among US drinkers, tariff-inflated prices could further erode their share. Moreover, the broader impact of tariffs on household budgets may make consumers less likely to splurge on a pricey cocktail or night out, depressing sales for bars and nightclubs. Rising recessionary fears may also keep consumers at home. In March, Goldman Sachs raised the probability of a US recession to 35% from 20%, amid tariff turmoil and economic uncertainty.
• Las Vegas, New Orleans, Chicago, St. Louis, and Milwaukee top the list of US cities with the best nightlife, according to a new study. Cities were ranked on factors including alcohol consumption, drinking culture, casinos, and general population stats, to arrive at a Wild Night Index Score. Top-ranked Las Vegas has no last call and 3.66 gallons of alcohol consumed per capita. New Orleans has no alcohol cut-off time, 298 bars per 100,000 residents, and a rate of 22% for excessive drinking. Chicago boasts 147 bars per 100,000 residents and 2.42 gallons of alcohol consumed per capita. St. Louis has 322 bars per 100,000 residents and $4.55 beers make it a cheap place to drink. Milwaukee is tops for excessive drinking (25%) and has 103 bars per 100,000 residents. Tenth-ranked Washington, D.C. leads in alcohol consumption with 4.1 gallons per capita.

• Tariffs imposed on Canada by the Trump administration could deter Canadians from visiting the US, according to the US Travel Association (USTA). Canada is the top source of international visitors to the US, with 20.4 million visits in 2024, generating $20.5 billion in spending, per USTA figures. A 10% reduction in Canadian travel could mean 2 million fewer visits, resulting in $2.1 billion in lost spending. Canada’s Former Prime Minister Justin Trudeau urged citizens to spend domestically and suggested they spend their summer vacations exploring their home country. The five most visited states by Canadians – Florida, California, Nevada, New York and Texas – could see declines in retail and hospitality revenue, as shopping is the top leisure activity for Canadian visitors. President Trump’s tariffs threats on products from Canada, Mexico and the European Union – including alcoholic beverages – threaten to raise prices or limit supply.
• Employment by bars and nightclubs grew 3.5% in January compared to a year ago, while the average industry wage jumped 6.1% over the same period to $22.31 per hour, easing from its peak in December, according to the latest US Bureau of Labor Statistics data. Employment by bars and nightclubs has grown in recent years to exceed pre-pandemic levels and wages have risen steeply. Growing payrolls at bars and nightclubs are supported by rising consumer spending, which rose 2.9% in November compared to a year ago and 0.3% versus October, according to the Bureau of Economic Analysis.