Bars & Nightclubs Industry Profile

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. TAO Group Hospitality owns some of the top-grossing nightclubs, LAVO Nightclub, Marquee Nightclub, and Tao Downtown 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.

Bars and nightclubs market is forecast to reach over $30 billion at a compound annual growth rate (CAGR) of 5.09% between 2022 and 2027, according to Technavio.

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.

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 ...