Disposable income is expected to rise this year, and that means people will be able to spend more at bars and nightclubs, according to a new report from IBISWorld, a consultancy which projects U.S. bar and nightclub revenue growing 2.9%.
In the past five years, the industry achieved a 1.2% a year growth pace, to $25.4 billion, despite shaky consumer confidence.
According to IBISWorld Industry Analyst Andrew Alvarez, “Bar and nightclub operators have attempted to respond to volatile growth and increased competition by diversifying into a range of new concepts such as wine bars, cocktail lounges and brewpubs.” As a result, the industry has become more fragmented because drinking establishments are catering to a larger range of niche markets. Many of the remaining establishments have adapted their menus and entertainment offerings to accommodate consumer tastes.
Over the five years to 2021, the industry is projected to continue facing competition from in-home alcohol consumption and nonindustry establishments that also serve alcohol, such as restaurants. In spite of these factors, the industry’s financial performance is forecast to remain relatively steady as the economy improves and consumer spending increases.
SOURCE: Bars and Nightclubs in the U.S., IBISWorld Inc., 800-330-3772