Keep your revenue in high spirits with this local bar and lounge analysis

It’s that time of the week! This week we’ve analyzed the revenue trends and seasonality of local, independent bars and lounges.

Each week we feature the revenue patterns of small businesses in all 50 states and across all major industries to highlight the impact of consumer spending on Main Street. In the past, small business owners have been flying blind when it comes to anticipating revenue trends that have a direct impact on their business. By observing the spending patterns of consumers over the past year, small business owners can better prepare and anticipate what will come this year.

Thanks to Womply’s unique data assets, we have an unparalleled view of consumer spending behaviors and how those behaviors translate into dollars and cents for local, independent businesses. Today, we’re taking a look at revenue trends for bars and lounges.


The average week for local bars and lounges

We like to start by establishing a national revenue baseline for the industry we’re analyzing. In this case, we analyzed businesses in these specific categories:

  • Bars and Lounges
  • Cocktail Bars
  • Dive Bars
  • Hookah Lounges
  • Lounges and Dance Clubs
  • Night Clubs
  • Pubs
  • Pubs and Dive Bars
  • Sports Bars
  • Wine Bars

On an average day during the year, these businesses process 25 transactions averaging about a $36 each, bringing average daily sales revenue to $926.

Why do we look at these metrics?
Most business owners are very familiar with their daily revenue intake, but a business’s daily revenue is actually the result of two metrics: the number of daily transactions, and the average purchase price per transaction. By measuring the average number of times customers transact with a business, we can get a better idea of when those businesses are busiest. And by measuring the average order size or purchase price, we can see how much patrons spend per order.

The average week for local bars and lounges

The above graph shows the distribution of revenue for bars and lounges over the days of the week. It shows us which days are the strongest for revenue, as well as which days of the week are least busy. Not surprisingly, weekends reign supreme: Friday, Saturday, and Sunday account for nearly 60% of the week’s total sales.

  • Sunday – 17.2%
  • Monday – 8.5%
  • Tuesday – 9.3%
  • Wednesday – 10.5%
  • Thursday – 12.3%
  • Friday – 18.7%
  • Saturday – 23.5%

Why do we measure revenue this way?
When businesses can see which days of the week are their biggest revenue contributors, they can better prepare for the forthcoming week. Whether they’re setting employees’ schedules for the week or plotting deliveries, they can plan more effectively when they know what the average week is like.

The average year for local bars and lounges

Business owners in the bars and lounges industry enjoy a rather consistent flow of revenue from month to month. Where other industries, like retail, see large swells in revenue during their peak sales season, those in the bar business savor a steady stream of revenue all year. During an average month, the average bar or lounge generates about $28,189 in revenue from 772 transactions.

  • Jan – 7.4%
  • Feb – 7.6%
  • Mar – 9.0%
  • Apr – 8.5%
  • May – 8.4%
  • Jun – 8.2%
  • Jul – 8.5%
  • Aug – 8.3%
  • Sep – 8.6%
  • Oct – 8.5%
  • Nov – 8.2%
  • Dec – 8.9%

Why do we measure revenue this way?
Just as we like to see which days of the week contribute the most to overall revenue, we like to know which months of the year contribute the most to a business’s annual revenue. Small businesses already operate on such thin margins that even the slightest advanced notice of shifting sales patterns can have substantial positive effects on a business’s bottom line.

The seasonality of local bars and lounges

The most interesting thing we see about the seasonality of local bars and lounges is actually the lack thereof. While it is not uncommon for businesses in other industries to go from one of their best weeks to one of their slowest weeks, there is usually a common trend and underlying season. When it comes to bars and lounges, however, the trend is that there isn’t one.

Why do we measure revenue this way?
Knowing which months are a business’s best provides a great high-level view of the revenue trends over the year. By looking at the year on a week-to-week basis, small business owners can anticipate the likelihood that upcoming holidays or events will translate into a sales surge or slowdown.

A quick note on this graph: This graph shows week-to-week seasonality over the course of the year. The month labels on the x-axis provide context but don’t exactly represent each month’s four weeks. This is because some months start mid-week. For example, February started on a Wednesday, so the first week is counted in January’s last week.

The average day for bars and lounges in your state

Below you’ll find each state’s average daily revenue, the amount each customer spends per purchase, and how many customers transact on a daily basis. We’ve also included a national ranking of all 50 states and the District of Columbia (in Column 2), according to average daily revenue. Nevada tops the chart at #1 with an average daily sales revenue that is 428% better than the average state; West Virginia comes in at #51.

   Alaska 29 $686 $31 22
   Alabama 25 $730 $28 26
   Arkansas 30 $638 $27 24
   Arizona 20 $801 $32 25
   California 6 $1,493 $39 38
   Colorado 16 $944 $30 32
   Connecticut 48 $295 $37 8
   D.C 2 $3,891 $66 59
   Delaware 44 $369 $25 15
   Florida 11 $1,205 $35 34
   Georgia 9 $1,384 $31 45
   Hawaii 5 $1,597 $63 25
   Iowa 43 $376 $33 11
   Idaho 33 $555 $31 18
   Illinois 31 $586 $30 19
   Indiana 42 $378 $25 15
   Kansas 38 $470 $28 17
   Kentucky 13 $1,017 $35 29
   Louisiana 34 $510 $31 17
   Massachusetts 19 $801 $45 18
   Maryland 24 $742 $26 29
   Maine 45 $351 $26 14
   Michigan 37 $484 $34 14
   Minnesota 32 $567 $26 22
   Missouri 14 $987 $47 21
   Mississippi 49 $239 $23 10
   Montana 47 $338 $30 11
   North Carolina 8 $1,408 $36 39
   North Dakota 50 $232 $32 7
   Nebraska 23 $747 $28 26
   New Hampshire 7 $1,412 $50 29
   New Jersey 12 $1,032 $42 25
   New Mexico 18 $818 $22 37
   Nevada 1 $4,894 $140 35
   New York 15 $981 $52 19
   Ohio 26 $717 $29 25
   Oklahoma 39 $454 $31 14
   Oregon 22 $752 $28 27
   Pennsylvania 28 $700 $40 18
   Rhode Island 41 $401 $29 14
   South Carolina 21 $785 $32 25
   South Dakota 46 $342 $38 9
   Tennessee 10 $1,343 $31 43
   Texas 17 $872 $32 27
   Utah 27 $715 $21 34
   Virginia 3 $2,172 $38 57
   Vermont 35 $502 $33 15
   Washington 4 $1,852 $51 36
   Wisconsin 40 $433 $31 14
   West Virginia 51 $215 $32 7
   Wyoming 36 $484 $26 19


Take action

Are you looking for more insight into how your business stacks up? Womply can help with that. We specialize in helping small business owners get smarter, faster. Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!

If you haven’t yet, be sure to check out our newly-launched Small Business Almanac. You’ll be able to see how businesses in your industry and state did last quarter. Check it out here.

Womply analyzed daily revenue for 2,180 local bars and lounges in all 50 states and the District of Columbia for all 365 days of the 2017 calendar year. Businesses were only qualified for the analysis if Womply had a full year of transaction history and the business recorded multiple transactions per day, on average.

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