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Busy Bars
March 2009 | Issue Two
The estimates and data contained herein are made using publicly available information and data and rules of thumb for different industries. BizEquity does notrepresent or endorse the accuracy or reliability of any advice, opinion, statement or any other information displayed or distributed through this report or its website.
 
 
Busy Bars
Bars across the nation are feeling the pinch of recession. Or are they?
You might be surprised to find out that the valueof bars is increasing in top U.S. cities
THE RECESSION IS KILLING BUSINESS
If you consider the current recession you might expect all business valuations to be down inthe dumps – and you'd be close to correct on this count. Many small businesses arefollowing the lead of their larger-cap colleagues heading in a downward direction. Bars, onthe other hand, according to BizEquity’s data, don’t seem to be affected in the same way.
Photo: While other businesses are feeling the strain of empty pockets in the current economic marketplace, bars are fillingtheirs up – along with drinks for their customers.
 
BARS SHOULD BE DOWN...RIGHT?
Look at what's happening in the casual dining segment. Chains have been going bankrupt, patron traffic isdown, and the average cost of a bill isn't what it used to be. So why wouldn’t the same be true for bars?BizEquity.com tracks the value of small businesses in the U.S. (we've been referred to as the Zillow of small business values), and our BizEquity database is showing that bars are actually holding up well in thecurrent marketplace.
BY THE NUMBERS
Numbers used in this report are based upon the BizEquity database, which represents about 11.7 millionbusinesses throughout the US.
THE NATIONAL NUMBERS TELL THE TALE
According to BizEquity, a national snapshot on bar business values indicates that they’re not only survivingmore than other small businesses, but they’re actually doing better now than they were a year ago.National Snapshot of Bar ValuationsNumber of BarsCurrentValuationOldValuation%Change
49181 $82,306 $78,379 5%
 
 
From the more than 49,000 bars sampled in the BizEquity database, an average current valuation of $82,306 has been determined -- that’s a 5% increase in one year. Based on BizEquity’s data, it seems thatbar valuations haven’t been hampered by the economy, at least not yet.
10 CITIES WITH THEIR DRINKING SHOES ON
So which major markets are experiencing a rise in bar values? Let's first filter the national market byabsolute quantity of bars.Top 10 U.S. Cities by Number of BarsRank CityNumber of BarsCurrentValuationOldValuation%Change
1 Chicago, IL 745 $90,103 $83,271 8%2 Houston, TX 636 $72,203 $68,236 6%3 New York, NY 504 $108,044 $100,172 8%4 Milwaukee, WI 451 $58,257 $56,032 4%5 Philadelphia, PA 367 $67,166 $64,025 5%6 San Antonio, TX 358 $71,475 $68,709 4%7 Cleveland, OH 325 $79,544 $66,870 19%8 Las Vegas, NV 321 $171,491 $131,988 30%9 San Francisco, CA 314 $90,172 $87,441 3%10 Dallas, TX 282 $133,406 $103,907 28%
Looks like serving up a good drink to go along with a casual meal -- or, maybe, just a bowl of beer nuts andpopcorn -- remains a viable business model. Most of these major cities are either close to or above thenational data in terms of increase in overall valuation.As you scroll the list, you'll find that Las Vegas is up the most with a 30% increase in bar valuations, andDallas is higher by 28%. Clearly these major metropolitans are incredibly vibrant when it comes to thesaloon industry.
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