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

Jul 20, 2026 - Elevating Mixers
  • Bars and restaurants are increasingly treating premium cocktail mixers as a competitive advantage rather than a commodity as consumers become more discerning and willing to pay $16 to $20 for high-quality drinks, Bar & Restaurant News reports. Operators are upgrading to premium or house-made mixers with natural ingredients to improve cocktail quality, justify premium pricing, and support the growing demand for no- and low-alcohol beverages. Premium mixers also help reduce labor, spoilage, and preparation time while delivering more consistent drinks, making them attractive amid labor shortages and rising operating costs. Industry experts recommend selectively upgrading mixers, standardizing recipes, and balancing craftsmanship with operational efficiency to improve guest satisfaction, encourage repeat business, and boost beverage profitability.
  • The growing popularity of low- and no-alcohol beverages is creating new revenue opportunities for bars and nightclubs as consumers seek healthier alternatives to traditional alcoholic drinks, Bar & Restaurant News reports. While alcohol’s share of total beverage sales has declined in recent years, demand for functional beverages containing ingredients such as probiotics, electrolytes, vitamins, and protein, particularly among Millennials and Gen Z customers, has risen. Rather than replacing cocktails, these products are expanding beverage menus and giving bartenders new tools to create premium, visually appealing, and customizable drinks. Industry suppliers report growing interest in sophisticated zero-proof and low-ABV offerings that emphasize flavor, wellness, and social experiences. For bars and nightclubs, the shift toward zero-proof and better-for-you beverages offers opportunities to attract health-conscious consumers, designated drivers, and guests looking to moderate alcohol consumption while still participating in nightlife and social occasions.
  • Studies show users of GLP-1 weight loss drugs drink less frequently and in smaller quantities, with declines in on-premise (including bars and nightclubs) alcohol spending, Just Drinks reports. Users' decreasing thirst for alcohol poses a long-term demand risk to the hospitality industry as it could create a structural decline in alcohol sales, especially among key demographics for premium products. Indeed, on-premise spirits sales were slightly negative in 2025, with alcohol sales falling in many markets nationwide. For bars and nightclubs, this signals lower overall sales volume, shifts in purchasing toward smaller quantities or fewer occasions, and increasing pressure on premium alcoholic beverages. At the same time, GLP-1 drugs reinforce broader trends toward health, moderation, and low or no-alcohol products, pushing venues to offer more non-alcoholic beverages, such as mocktails and NA beer.
  • Employment at alcoholic beverage drinking places increased 1.7% in May compared to a year earlier, while the industry's average hourly wage slipped 1% to $23.56, according to the latest US Bureau of Labor Statistics data. Although wages have eased from last year’s record highs, they remain historically high. Meanwhile, sales at eating and drinking establishments inched up just 0.1% year over year in June, according to the Census Bureau. Overall, bars and nightclubs experienced modest sales growth during the first half of 2026 amid a challenging business environment. While consumer spending remained resilient, many bars and nightclubs struggled with softer customer traffic, rising operating costs, and changing consumer drinking habits.

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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