Open bar: Rising consumer spending and demand for specialty cocktails will drive industry growth

The Bars and Nightclubs industry in California has expanded over the five years to 2017. The industry in California has benefitted from strengthening economic activity, indicated by the increase in consumer spending in California. An increase in consumer spending signals growth in spending on discretionary purchases and activities, such as alcohol purchases from bars and nightclub admissions. Most of industry revenue is composed of the sale of alcoholic beverages. Over the five years to 2022, consumer spending is anticipated to grow, encouraging consumers to make more discretionary purchases and boosting foot traffic into bars and nightclubs. However, operators will continue to face strong competition from other industry operators and off-premise consumption options...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
1.1%
Forecast Growth 17-22
Profit
Employment
38,857
Businesses
4,657
What Our Customers Say

Industry Threats & Opportunities

  • Despite improving economic conditions, operators will continue to experience strong competition
  • Bars and nightclubs nationwide have concentrated on value-added services and products, such as hosting events
  • Adapting to consumer trends provides an opportunity for operators to establish a loyal customer base
  • Industry Report - Starting a New Business Chapter

    Capital investmentThe main barrier to entry for new operators in the Bars and Nightclubs industry in California is acquiring enough capital to open a new bar or nightclub. Startup costs, such as the purchase of equipment, lease and decoration of buildings and payment of suppliers and staff, must be paid with reserve capital until the business has a positive cash flow. Operators can lower their costs by renting or leasing equipment. Another entry method is purchasing or leasing an existing bar or nightclub operation. However, redecoration costs may be required.Liquor licenseNew operators in California may struggle to acquire a liquor license, especially in jurisdictions that are close to reaching their set quota of licensed establishments per capita. In ...purchase to read more.

    Additional Insights for the Bars & Nightclubs in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bars & Nightclubs in California Industry are

  • Having a loyal customer base
  • Ability to quickly adopt new technology
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Consumer Spending in California and Number of Adults Aged 20 to 64 in California in the Bars & Nightclubs in California industry impact industry performance..

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    What is the Bars & Nightclubs in California Industry?

    This industry includes bars, taverns, pubs, lounges, nightclubs and other drinking places that primarily prepare and serve alcoholic beverages for immediate consumption. These establishments may also provide limited food services.

    Industry Products
  • Sale of distilled spirits
  • Sale of wine drinks
  • Sale of beer, ale and malt beverages
  • Sale of meals and nonalcoholic beverages
  • Admissions to special events and nightclubs, including cover charges
  • Industry Activities
  • Operating licensed bars
  • Operating nightclubs
  • Operating wine bars
  • Operating licensed establishments with limited food service
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Spending in California
  • Number of Adults Aged 20 to 64 in California
  • Per Capita Alcohol Consumption in California
  • Healthy eating index

  • Current Performance
  • Change in the industry
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Room to grow
  • Risks ahead
  • Industry landscape
  • Table: Bars & Nightclubs in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bars & Nightclubs in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Sale of distilled spirits
  • Sale of beer, ale and malt beverages
  • Sale of meals and nonalcoholic beverages
  • Sale of wine drinks
  • Other
  • Admissions to special events and nightclubs, including cover charges
  • Chart: Bars & Nightclubs in California Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 45 to 54 years
  • Consumers aged 25 to 34 years
  • Consumers aged 35 to 44 years
  • Consumers aged 55 to 64 years
  • Consumers aged 65 and older
  • Private sector
  • Consumers aged under 25 years
  • Chart: Major Market Segmentation for the Bars & Nightclubs in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Bars & Nightclubs in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bars & Nightclubs in California Industry

  • BJ’s Restaurants Inc.Darden Restaurants Inc. Hakkasan GroupSBE Entertainment GroupTao GroupThe Abbey Food & Bar
  • Table: BJ’s Restaurants Inc. - financial performance
  • Table: Darden Restaurants Inc. - financial performance
  • Table: Hakkasan Group - financial performance
  • Table: SBE Entertainment Group - financial performance
  • Table: Tao Group - financial performance
  • Table: The Abbey Food & Bar - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bars & Nightclubs in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Bars & Nightclubs in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Disposable income in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Off-Premise Consumption
  • The purchase of alcoholic beverages for consumption at home.
  • On-Premise Consumption
  • The purchase of alcoholic beverages for consumption out of the home environment.
  • Packaged Alcohol
  • Alcohol packaged for purchase in bottles, cans or similar containers.
  • Why buy this report?

    IBISWorld’s industry research report on Bars & Nightclubs in California provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Bars & Nightclubs in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Bars & Nightclubs in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Bars & Nightclubs in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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