Sales at bars and breweries in the United States have grown exponentially over the past several decades. In 1992, drink sales of bars and breweries totaled $12.8 billion. Twenty-five years later, in 2017, drink sales had more than doubled to the tune of $28.46 billion dollars.[i] In fact, breweries alone are forecasted to bring in over $29 billion in revenue by 2022.[ii]
Drinking establishments are also on the rise in America. In 2018, the number of bar and nightclub establishments in the U.S. totaled 70,382.[iii] While the number of establishments has waxed and waned over the years, sales revenues continue to rise.
All Hopped Up
Breweries alone make up a fair share of the drinking establishments in the U.S. In 2018, there were 7,450 breweries in the United States. That’s a significant increase from 2012 when breweries in the U.S. were numbered at 2,475.[iv] Microbreweries numbered the most in 2018, coming in at 4,522 establishments. Brewpubs numbered 2,594 establishments in 2018, and regional craft breweries came in at 230.[v]
So, who is patronizing these establishments? By and large younger adults. In 2018, the share of Americans who visited bars and nightclubs in casinos was dominated by 18-29-year-olds (53%). Americans aged 30-49 made up 48% of visitors, and those aged 50-64 came in at 35%.[vi]
It’s Always Drink O’clock Somewhere
With so many bars and breweries competing for their share of customers, establishments owners are needing to get creative in order to get people in the door and spending money. In addition to more traditional ways of marketing and advertising, including social media, website content, and email newsletters, bars and breweries are also creating more exciting and inviting establishments themselves. Trivia nights, happy hour buffets, and theme nights can all create buzz for a bar or brewery, resulting in more foot traffic and, hopefully, positive reviews.
One other way that bars and breweries are working to create a more enticing environment is to place an in-house ATM in their establishment. By providing a bar or brewery ATM, establishment owners easily solve customer concerns about payment options. It has also been shown that cash is still readily used as a form of payment. According to the Federal Reserve Bank of San Francisco, “Cash continues to be the most frequently used payment instrument, representing 30 percent of all transactions and 55 percent of transactions under $10.” Additionally, customers between 18 to 25 years of age older use cash approximately 34 percent of the time to pay for transactions. Considering that the younger demographic makes up the largest number of visitors to bars and breweries, establishment owners are wise to provide easy access to cash.
Great Minds Drink Alike
Whether they host costume parties for Halloween or tasting events paired with carefully crafted drinks, bars and breweries are part of the social fabric of the United States. By creating a more vibrant, thoughtful, and inviting setting, bars and breweries are helping to ensure customer loyalty and their own business longevity.
[i] US Census Bureau. (May 15, 2018). Drinking place sales in the United States from 1992 to 2017 (in billion U.S. dollars) [Graph]. In Statista. Retrieved November 06, 2019
[ii] US Census Bureau, & Statista. (August 23, 2018). Breweries revenue in the U.S. 2010-2022 (in billion U.S. dollars) [Graph]. In Statista. Retrieved November 06, 2019
[iii] Bars and Nightclubs. (n.d.). Retrieved November 6, 2019, from https://clients1-ibisworld-com.colorado.idm.oclc.org/reports/us/industry/keystatistics.aspx?entid=1685.
[iv] Brewers Association. (April 17, 2019). Total number of breweries in the United States from 2012 to 2018 [Graph]. In Statista. Retrieved November 06, 2019
[v] Brewers Association. (April 17, 2019). Number of operating craft breweries in the United States from 2012 to 2018, by type [Graph]. In Statista. Retrieved November 06, 2019
[vi] Statista. (October 31, 2018). Share of Americans who visited bars and nightclubs in casinos in the last 12 months in 2018, by age [Graph]. In Statista. Retrieved November 06, 2019