III. Industry Analysis
[Company Name]directly or indirectly competes with all bars and restaurants nearby our location that offer similar products, mainly alcohol and food .
Industry Statistics & Trends
The following industry size facts and statistics bode well for [Company Name].
The percentage of beer, wine, and liquor consumed in bars and restaurants as opposed to private settings is growing. The U.S. Department of Commerce reported that alcohol sales were up 5.2 percent to nearly $9.2 billion. Beer accounts for approximately 40 percent of sales, distilled spirits or hard liquor 30 percent, food and non-alcoholic beverages 10 percent, and wine 7 percent.
The industry is highly fragmented with taverns accounting for the largest sector with 19,660 drinking places. Bars and lounges represent 19.8 percent of the market.
Additional industry stats include:
- Last year, the bar and nightclub industry’s drinking establishments primarily engaged in the retail sale of alcohol drinks numbered 60,876
- The establishments generated approximately $15 billion in combined annual sales
- The average establishment generated approximately $200,000
- States representing the majority of establishments included: Wisconsin (4,489), California (4,449), Texas (4,388), New York (4,283), Illinois (3,634), Pennsylvania (3,572), Florida (3,191), and Ohio (3,201).