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].
According to Market Watch the percentage of beer, wine, and liquor consumed in bars and restaurants as opposed to private settings is growing.
According to the Distilled Spirits Council on premise volumes of spirits grew an estimated 6.3% last year. That compares to overall growth of 3.9% while on-premise revenues grew by 11% vs. 7.5% in all channels.
According to Dun & Bradstreet and the National Club Industry Association of America:
- 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).
The National Club Industry Association of America reports that 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. According to the U.S. Census Bureau’s Statistics of U.S. Businesses, there were about 351,912 people employed within the industry with nearly $4.1 billion in annual payroll.
The U.S. Department of Commerce reported that alcohol sales were up 5.2 percent to nearly $9.2 billion. According to the National Club Industry Association of America 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. Forms of entertainment include live music, DJs, dancing, and adult entertainment.