Industry Analysis & Industry Trends
The Wine Bars industry has grown in line with the popularity of wine in the past few years, and people look for a venue to be exposed to a wide variety of wines. The industry has high product turnaround, but with low profit margins, which makes it susceptible to any adverse changes in demand (including any recessionary declines). Changes in household preferences, disposable incomes and consumer spending also influence demand.... purchase to read more
Industry Report - Industry Investment Chapter
The Wine Bars industry exhibits a low level of capital intensity. In 2013, for every $1.00 the average operator spends on wages, it will spend about $0.12 on the use and replacement of capital. The industry is highly dependent on human capital due to its service-oriented nature. Although most staff are relatively low-skilled, low-cost workers, no bar can function without quality staff with a broad knowledge of wine varieties and regions. The average operator spends about 25.1% of its revenue on wages and associated labor costs.
Meanwhile, capital costs are moderate for the average wine bar. The cost of the initial fit out will depend on the size and style of the establishment. However, most wine bars are small-to-medium in size and do not require extensive, expensive renovations... purchase to read more