Bars & Nightclubs
Companies in this industry sell alcoholic beverages for on-premises consumption and may also offer limited food service. The industry mostly consists of small, single-location businesses, as inconsistent liquor laws make it harder to operate establishments in multiple states or countries. Some larger US-based bar chains include McMenamins, Winking Lizard Tavern, and World of Beer. Top-grossing nightclubs LAVO Nightclub, Marquee Nightclub, and Tao Downton Nightclub each have locations in New York City and Las Vegas. Leading companies in the less-fragmented UK market include pub operators Punch Pubs & Co and Stonegate Group, as well as the nightclub chain REKOM UK.
Bar and nightclub culture varies significantly from region to region. For example, while pubs are the most common drinking establishments in the UK, karaoke bars are popular in Japan, and techno dance clubs initially rose to prominence in Germany. Standalone bars are rare in some countries, including Italy, where alcoholic beverages are primarily sold in cafés along with coffee, meals, and snacks. Spain has the greatest number of bars per person in the world, according to the National Statistics Institute (INE).
The US bar and nightclub industry includes about 40,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $24 billion.
Personal income and entertainment preferences drive demand. The profitability of individual companies depends on the ability to drive traffic and develop a loyal clientele. Large companies can offer a wide variety of food, drinks, and entertainment, and have scale advantages in purchasing, financing, and marketing. Small companies can compete effectively by serving a local market, offering unique products or entertainment, or providing superior customer service. The US industry is highly fragmented: the 50 largest companies account for less than 10% of revenue.
Bars and nightclubs compete with other venues that offer alcoholic drinks or entertainment, including restaurants, hotels, and casinos. Drinking establishments also compete with the home consumption of alcohol.
Products, Operations & Technology
Major sources of US industry revenue include beer (some 30% of revenue), distilled spirits or hard liquor (about 35%), food and nonalcoholic beverages
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms