III. Industry Analysis
The Nightclub industry has experienced overall growth over the past five years . This growth was largely driven but sustained growth in consumer spending and per capita expenditure on alcohol. The industry will continue to benefit from economic growth, a decrease in the unemployment rate and increased discretionary spending. Additionally, per capita expenditure on alcohol is expected to increase at a faster rate than the previous five-year period, particularly on premium beverages.
The rising popularity of craft beer, cider, specialty cocktails and wine has helped sustain the industry, providing operators with a niche that has garnered a great deal of consumer interest, particularly in urban areas. Nightclub operators have also attempted to respond to changing preferences and increased competition by diversifying into new and niche concepts such as wine bars, cocktail lounges and brewpubs to attract new demographics. As a result, the industry has become more fragmented.