Lounge 264 - Nightclub -Sample Restaurant Business Plan

LOUNGE 264 – SAMPLE BUSINESS PLAN 25 © BPLA NEXPERTS.COM © BPLANEXPERTS.COM How do you come to know about new places? Analysis The US bar and nightclub industry includes about 67,290 establishments with combined annual revenues of $21,292 million. Of the total restaurant industry, the drinking places sector (bars, taverns and other drinking venues) accounts for 3.2% of the revenue. The revenue of the drinking places has grown by 1.1% in 2010 and a forecast has been made that in 2011 it will grow by 3.5%. The recession has slowed the overall alcohol consumption in 2009, however, the market has shown a positive growth in 2010 and the consumer spending on recreational activities has increased by 1.9%. A personal income and entertainment need drives the demand for recreational activities. Hence, the target market is mainly the high income groups and the youths of the country. The research has captured that 67% of the adults in US consume alcohol. As per a survey conducted by Gallup, the largest segment of alcohol consumption is within the age group of 18 ‐ 54 years. The alcohol intake for the people in the age ‐ group of 55 years and above is comparatively lower than others. The Gallup survey also states that the alcohol intake is more for the upper income Americans. The survey has captured that the people with income level of $75000 and above spent more on alcohols than their other counterparts. The drinking pattern varies widely across the demographic groups, like beer are preferred by men and young drinkers, whereas wine is preferred by the women and the old people. The beer market has shown a downfall in the first half of 2010 when the volume sold fell by 2.7%.