Bars & Nightclubs
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 37,490 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.
Industry size & Structure
An average bar or nightclub has about 10-12 employees, $856,000 in annual revenue, and pays $190,000 in salaries.
- The US has about 37,490 firms with 433,000 employees and total sales of $32.1 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 9% 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
Bars & Nightclubs Industry Growth
Recent Developments
Mar 20, 2025 - Canadians Staying Home?
- 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.
- Dry January is over, but bar and nightclub owners aren’t breaking out the champagne as the sober curious movement continues to gain momentum in the US. New findings from marketing firm NCSolutions (NCS) reveal that nearly half of Americans (49%) say they plan to drink less alcohol this year, a 44% increase since 2023. The percentage of people planning to cut back on alcohol consumption has been trending upward over the last three years. In 2023, 34% of Americans planned to drink less, rising to 41% in 2024. In 2025, 30% of Americans say they’re taking part in Dry January, a 36% increase from last year. Per NCS purchase data, Dry January is the least popular month to buy alcohol. In 2024, purchases of spirits tumbled 39% in January compared to December, while wine purchases fell 36% and beer/cider/hard seltzer purchases decreased 21%.
- As the sober-curious movement gains momentum, alcohol-free bars and nightclubs are becoming more prevalent, moving from a niche idea to reshaping how people feel about nightlife, reports Rollingout.com. Alcohol-free venues provide an alternative to traditional bars and nightclubs by taking the focus off of drinking and redirecting it toward creating meaningful connections and fostering a sense of community. Online tools like Sober Bar Finder are helping nondrinkers find sober-friendly and alcohol-free venues. At the Sans Bar in Austin, Texas, customers, not cocktails, are the star attraction, says owner Chris Marshall. “We make it about the experience and connection, not the drinks.” Well-crafted non-alcoholic cocktails (aka mocktails) feature syrups, bitters, and custom infusions that are visually appealing, delicious, and often pricey. With rising participation in Dry January and its twin Sober October, traditional bars and nightclubs may want to host alcohol-free nights or add low- and no-alcohol options to drinks menus.
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