Valuable Revenue-Generating Venues According to various sources, the approximately 70,000 establishments in the bar & nightclub industry generated approximately $25 billion in total 2016 revenues. Total 2015 revenues in the US Census Bureau retail category, “drinking places” (NAICS code 7224), was $22.45 billion, a 3.6% increase over 2014’s $21.67 billion. Through November 2016, total revenues at drinking places were $21.57 billion, a 5.1% increase compared to the first 11 months of 2015. Adding the monthly average of 2015 to 2016’s 11-month total would make the complete-year total $23.44 billion.

“May I Take Your Order?” Data from the hundreds of bars and restaurants that are clients of BevSpot, a bar management software platform, reveal that 40% of order dollars were for spirits, 32% for beer and 28% for wine. In the beer category, BevSpot reports that Bud Light accounted for almost 7% of orders, with Corona a distant second at 4.3%; followed by Miller, 3.8%; Coors, 3.05%; Stella Artois, 2.9%; Harpoon, 2.7%; Ballast Point, 2.6%; and Guinness, 2.4%. Nielsen CGA’s On Premise service reported spirits volume had increased 1.6% and value 2.6% for the 52 weeks ending mid-July 2016. Vodka and whiskey are the top spirits categories; however, cognac, Irish whiskey, rye and tequila had double-digit growth.

Choices for Every Taste According to data from IRI, Millennials and Generation X members are more likely to try different types of alcoholic beverages on-premise than Baby Boomers, with Gen Xers having consumed 2.8 different types of alcohol on-premise during 2016. Restaurants and bars that serve creative drinks influence which establishments Millennials and Gen Xers patronize and 34% of these younger adults are attracted to a particular alcoholic beverage because of the bottle and/or label design. Although African Americans have been and continue to account for the majority of the cognac market, at 55%, Caucasian Americans have increased their share from 26% to 40% since 2014. Bars/Pubs have the largest share of volume, at 21%.

Music Makes the Scene According to TouchTunes, the largest in-venue interactive music and entertainment platform available in 65,000 US bars and restaurants, country music artist Eric Church was the Top Played Artist of 2016 for the second consecutive year. Others in the top 10 in order were AC/DC, Chris Stapleton, Luke Bryan, Rihanna, Kid Rock, Lynyrd Skynyrd, Eagles, The Rolling Stones and Johnny Cash. The top-played song was Chris Stapleton’s Tennessee Whiskey; followed by Rihanna’s Work (Ft. Drake); Garth Brooks’ Friends in Low Places; Steve Earle’s Copperhead Road; and Eric Church’s Like a Wrecking Ball.

Technology and Mixology According to the Nightclub & Bar Website, many establishments are failing to capture as much as 60% additional revenues, primarily because of a lack of technologies that make ordering easier for customers, thus maximizing per customer orders per waitperson. Bars and nightclubs are venues that can benefit greatly from artificial intelligence (AI) technologies by promoting specials based on what type of drink customers are ordering, generating more impulse buys. Instead of losing the estimated one-third of customers who don’t order because they can’t catch the attention of a bartender, customers can tap their smartphone on a disc on the bar that submits their order and indicates where they are standing.

Staying Ahead of Trends Bars and nightclubs need to be aware of three 2017 on-premise beverage trends. Rosé has become a year-round favorite, especially paired with food. Sour beers and natural wines are also growing in popularity.   As more people enjoy Japanese cuisine, sake is their beverage choice and more sake bars are opening across the US. Establishments have discovered a ready market for canned wines since they are easy to recycle, and reduces the use of glassware. Bars and nightclubs must be prepared to cater to customers’ tastes for more expensive beverages, such as high-end whiskeys. During 2016, volume of Tullamore Dew and Jameson Irish whiskeys increased 14.3% and 12.2%, respectively.

Advertising Strategies To attract more Baby Boomers, consider a ‘60’s night, with bartenders and wait staff in appropriate “costumes,” music and/or a cover band of that decade’s music and beverages that would have been served then. A bar or nightclub can differentiate itself among Millennials by adding some of the experimental beverages they enjoy – sweet wines, flavored spirits, spicy, bitter, etc. – to their menu or featuring them at a special price during an one-evening promotion. Those bars and nightclubs with food service can initiate beer-food pairing promotions, especially if their beer selection is diverse. Beer-food pairing promotions work best when a brewmaster, chef, or cicerone hosts the event and guide guests through the pairings.

New Media Strategies Properly planned and executed, club crawls can generate significant additional revenues. Social media is the obvious channel to promote the event, but also consider sharing the event in real-time with a live streaming app. Many patrons of bars and nightclubs are eco-conscious. Social media is the place to engage with these customers. Post photos and videos of green, sustainable and organic wines and other beverages as well as operational methods that save energy and minimize waste. Geo-fencing can boost real-time foot traffic, as many people in a bar or nightclub’s target audience are apt to be near the establishment and very active on their smartphones. Use such an app or service to promote a drink special good for the next 30 minutes.