Drinking Places (Alcoholic Beverages) Revenue Benchmarks
The average drinking places (alcoholic beverages) business in the United States generates $641K in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 37,490 drinking places (alcoholic beverages) businesses in the U.S., employing 282,490 workers with an average profit margin of 5.0%. The average employee in this industry earns $26K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Drinking Places Business Actually Do?
Bars, taverns, lounges, and nightclubs whose primary revenue is alcohol sales. Some serve food but derive most of their gross profit from beverages.
Who buys: Adult consumers seeking social drinking, entertainment, and nightlife.
How this is different: Different from full-service restaurants (majority food revenue). NAICS defines the split at 50% or more alcohol sales.
Average Revenue
$641K
per year
Profit Margin
5.0%
industry average
Revenue / Employee
$85K
per year
Total Businesses
37,490
in the US
Est. Owner Income
$32K
small business avg
Labor Cost
32.0%
of revenue
Avg Employee Wage
$26K
per year (BLS)
Market Saturation
11.3
firms per 100K people
How Much Do Drinking Places (Alcoholic Beverages) Charge?
Bars price per drink with beer, wine, and cocktails at different margin structures.
| Service | Typical range |
|---|---|
Domestic draft beer | $5–8 |
Craft beer | $7–14 |
Glass of wine | $8–18 |
Well cocktail | $9–15 |
Craft cocktail | $14–22 |
Bottle service (nightclub) | $300–3,000+ per bottle |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete drinking places business plan
A 12-section data-backed business plan for a drinking places (alcoholic beverages) business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the drinking places (alcoholic beverages) industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Food & beverage costs | $35 | $222K | Ingredients, food, beverages, disposables — the raw cost of what's served. |
Wages & benefits | $32 | $205K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $13 | $81K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $20K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $13 | $81K | Utilities, cleaning, licenses, credit-card processing, kitchen equipment depreciation, insurance. |
Net profit | $5 | $32K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.24%
openings/year
Closure Rate
9.71%
closings/year
Net Job Growth
+5.69%
annual
Businesses Closed
3,169
in 2023
Firm Count Trend
Should You Start a Drinking Places Business?
Startup Cost
$100K – $500K
Break-Even
112 months
5-Year Survival Rate
40.0%
Related Industries
Frequently Asked Questions
- What does a drinking places (alcoholic beverages) business do?
- Bars, taverns, lounges, and nightclubs whose primary revenue is alcohol sales. Some serve food but derive most of their gross profit from beverages. Adult consumers seeking social drinking, entertainment, and nightlife.
- How much do drinking places (alcoholic beverages) charge?
- Bars price per drink with beer, wine, and cocktails at different margin structures. See the pricing table above for typical rates by service type.
- How much does the average drinking places (alcoholic beverages) make per year?
- The average drinking places (alcoholic beverages) business generates $641K in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $32K per year at a 5.0% profit margin.
- How many drinking places (alcoholic beverages) businesses are there in the US?
- There are 37,490 drinking places (alcoholic beverages) businesses operating in the United States, employing a total of 282,490 workers.
- How much does it cost to start a drinking places (alcoholic beverages) business?
- Startup costs for a drinking places (alcoholic beverages) business typically range from $100K to $500K, with a 5-year survival rate of 40.0%.
- What is the average salary in the drinking places (alcoholic beverages) industry?
- The average employee in the drinking places (alcoholic beverages) industry earns $26K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The drinking places (alcoholic beverages) industry is actively growing — adding jobs at a net rate of 5.7% per year. New establishments are opening faster than existing ones close (10.2% entry vs 9.7% exit), indicating healthy demand.
Approximately 60% of drinking places (alcoholic beverages) businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 3,169 firms in this industry closed permanently.
Employment & Wages
The average employee in the drinking places (alcoholic beverages) industry earns $26,027/year. This is below the national average of ~$65K — typical for this sector. With 42,680 establishments employing 415,782 people, the typical business has about 10 employees.
Industry Trend (2000–2023)
The drinking places (alcoholic beverages) industry has declined 21% since 2000 (from 44,742 to 35,517 firms).
See full historical statistics →Compare Drinking Places (Alcoholic Beverages) revenue with other industries: