Bars & Nightclubs Industry Overview

Excerpt from Bars & Nightclubs Report

Companies in this industry sell alcoholic beverages for on-premises consumption and may also offer limited food service. No major companies dominate, as varying state liquor laws complicate the ability to form large chains.

Competitive Landscape

Personal income and entertainment needs drive demand. The profitability of individual companies depends on the ability to drive traffic and develop a loyal clientèle. 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 industry is highly fragmented: the 50 largest companies account for about 5 percent of revenue.

Products, Operations & Technology

Major sources of revenue include beer (about 35 percent of sales), distilled spirits or hard liquor (30 percent), food and nonalcoholic beverages (20 percent), and wine (7 percent). Companies may specialize in certain beverages, like craft beers or martinis.