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
Nov 20, 2025 - Airport Bar Menu Strategies
- Airport bars, which cater to a captive clientele that’s often in a hurry, have evolved beyond mere grab-and-go pit stops, Bar & Restaurant News reports. Instead, today’s travelers have come to expect craft cocktails, curated wines, and elevated experiences. Brittany McCarthy of Paradies Lagardère explains how her beverage team translates national trends like no- and low-ABV drinks, agave spirits, and spritzes into fast but high-quality airport menus. To balance speed with sophistication, they use batched or draft cocktails, premium mixers, and prepped fresh juice to deliver craft-level drinks during peak times. They also localize offerings with regional spirits and wine. For bar operators, this means opportunity: airport bars can increase margins with premium, on-trend products while still turning tables quickly. But doing so demands forward planning, strategic layout, and staff training. The airport setting rewards operators that can blend creativity, efficiency, and a strong sense of place.
- 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 to a new high in July, up 5.4% compared to a year ago, according to the latest US Bureau of Labor Statistics data. Employment by alcoholic beverage drinking places has grown 17% over the past decade, faster than the 13% growth in overall private employment. The average industry wage rose 3.7% in July to $23.03 per hour, easing from its peak in May. With wages almost double that of a decade ago (up 99%) and employment at a record high, payrolls at bars and nightclubs have swelled. However, the industry's rising labor costs are supported by sustained consumer spending, with personal consumption expenditures (PCE) rising 2.6% year over year and 0.2% month over month in July, according to the Bureau of Economic Analysis.
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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