What Does the $24 Billion Bar Industry Look Like?
Each town is different, with unique people and a distinctive vibe. But you can head to the nearest street corner no matter where you are and find a local bar, be it a hometown spot or a trendy nightclub. It’s such a mainstay in American life, you may not even notice it.
The U.S. bar and nightclub industry has grown at a steady rate, generating $24 billion in annual revenue as of 2017. The booming market continues to grow and cater to new demographics of bar-goers – like the millennials that came of age in recent years.
This newest consumer base, along with evolving products and steady demand, creates ample opportunities for entrepreneurs interested in the bar industry.
Beer, wine and spirits have been an integral part of American culture since the beginning. We find many occasions to indulge, and we’ve built a vibrant culture around enjoying drinks with friends.
We celebrate special occasions with a toast, and there’s a drink for every event – like mimosas before noon on weekends and themed wedding cocktails. The local bar serves as a place to connect with friends and neighbors, watch sports and relax after work.
Where other industries see seasonal slumps, people visit bars year round, beer, wine and liquor are in-demand throughout every season. There are endless reasons for guests to visit a bar, and this creates sustained business for owners in the industry.
Who’s in the Bar Industry?
Drivers of the bar industry include business owners, entrepreneurs, corporations and franchises. As demand continues to grow, new operators are entering the market to capitalize off this dynamic sector.
Furthermore, the explosive popularity of craft beer and cocktails make room for fresh, original bar concepts.
Craft beers sales make up 22 percent of retail spending in the U.S. beer market. The steady increase has been met by a rise in brewers and microbrewers creating new flavor profiles, diversifying the market and appealing to the adventurous craft beer drinker.
It takes the right kind of entrepreneur to take advantage of the bar industry’s growth. Business owners continue to enter the market, but many new operators fail to build a successful bar concept from scratch.
Franchise opportunities like Beerhead Bar & Eatery offer eager entrepreneurs a proven business model that’s easy to implement and designed for profitability. Beerhead focuses on craft beer, offering hundreds of options, and incorporates local ingredients, beers and decor.
Beerhead provides entrepreneurs with a sound investment that a risky original concept can’t offer. The strong brand and simple operations allow aspiring business owners to effectively harness the bar industry’s momentum.