Bars & Nightclubs NAICS 722410

        Bars & Nightclubs

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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

Aug 20, 2025 - Making Investments
  • Bar and restaurant owners plan to invest in new products and equipment this year despite a rather gloomy overall economic outlook, according to Bar & Restaurant News’ 2025 State of Industry Survey published in June. More than two-thirds (68%) of owners surveyed said they plan to invest in upgrades and new equipment, with 43% planning on allocating more than $20,000 to investments, up from 2024 when 35% said they planned on spending only $10-15,000. The backbar is on the minds of owners, with 47% planning to invest in new spirits/liquor, a big increase from 2024, when spirits didn’t even break into the top five investment categories. Owners are also investing in artificial intelligence (AI), which is reshaping how many bars and restaurants operate from using AI-powered chatbots to take reservations to using predictive analytics to forecast demand, reduce waste, cut costs, and improve efficiency, per the survey.
  • The One Big Beautiful Bill Act signed by President Trump on July 4th includes limited and temporary tax exemptions for tipped workers. Under the new deduction, effective for 2025 through 2028, qualified workers with a gross adjusted income of under $150,000 annually ($300,000 for joint filers) will be exempt from paying tax on tipped earnings up to a maximum of $25,000, according to the IRS. If a worker earns over $150,000 annually their tipped income will start to be taxed. The exemption is expected to cover the majority of individuals earning tips such as bartenders and wait staff. (By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before December 31, 2024.) The bill also includes a No Tax on Overtime provision with a maximum annual deduction of $12,500.
  • Labubu dolls are revitalizing the nightlife scene at clubs in Brooklyn, NY (and beyond) where raves featuring the highly-collectible creepy plush monsters attract up to 800 people, Time Out reported in July. At late-night parties in East Williamsburg (often running from 11 p.m. to 4 a.m.), Labubu revelers pack the dance floor for Labubu mystery unboxing giveaways, high-energy DJ sets, and performances by K-pop dance crews, according to Time Out. With TikTok and Instagram fueling their popularity, the gremlin-like creatures have become a viral sensation and can fetch eye-popping sums from collectors. This summer Labubu rave parties and events are being held in clubs from Brooklyn, to San Antonio, to Honolulu.
  • Employment by bars and nightclubs grew 4.1% in June compared to a year ago, while the average industry wage rose 7% over the same period to $23.58 per hour, according to the latest US Bureau of Labor Statistics data. With wages more than doubling over the past decade (up 104%) and employment rising to a record high level in June, payrolls at bars and nightclubs have swelled. The industry’s rising labor costs are supported by sustained consumer spending, which rose 2.6% year over year and 0.3% month over month in June, 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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