First Research US Industry Profile

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Bars & Nightclubs
SIC Codes: 5813
NAICS Codes: 722410
Last Quarterly Update: 6/17/2019
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 World of Beer, McMenamins, and Winking Lizard Taverns. Top-grossing nightclubs Marquee, Tao, and Lavo each have locations in New York City and Las Vegas. Leading companies in the less-fragmented UK market include pub operators Ei Group and Punch Taverns, as well as the nightclub chain The Deltic Group.
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 Nielsen.
The US bar and nightclub industry includes about 36,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $22 billion.
Competitive Landscape
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 (about 35% of sales), distilled spirits or hard liquor (35%), food and nonalcoholic beverages (15%), ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

03/18/2019
12/10/2018
09/03/2018
06/04/2018
03/05/2018
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08/28/2017
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02/27/2017
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08/22/2016
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02/24/2014
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02/25/2013
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08/20/2012
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03/12/2012
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01/25/2010