Market Analysis : Bar Market Essay examples
The United States bar market has approximately 45,000 establishments and drives over 20 billion dollars annually. The industry is very fragmented because of varying state liquor laws. Varying liquor laws makes it harder for chains to dominate this space. In 2015, the National Restaurant Association predicted that there would be 20.5 billion dollars spent at bars, but the actual number exceeded 24 billion dollars.
FOMO will sell directly to bars, nightclubs, restaurants, and event organizers. There are approximately 74 bars, nightclubs and restaurants that serve alcohol within a 10-mile radius of the UF Campus.
According to IBISWorld the average yearly revenue for a location is $270,000. Also according to IBISWorld’s industry report, the average amount spent on marketing is 2.5% of revenue. This averages out to $6,750 per location. With 74 locations, there is approximately $499,500 spent on marketing each year in Gainesville. This is based on the assumption that Gainesville has a similar demographic and makeup as the rest of the United States (Bars & Nightclubs in the US: Market Research Report).
Trends in bars:
There are two important trends that will help FOMO be successful in the market. First, more people are using mobile applications to find local bars and restaurants around them. Bars are able to capitalize on this trend by having user friendly sites and applications. Second, digital drink boards are becoming more popular to…