Comment by fragmede
8 months ago
Because the economics of it are such that there's where you get your money. How much cover charge are you willing to pay to go out to a club playing local talent on a random weeknight? A cover charge that would actually cover costs at a venue with no bar would be exorbitantly expensive. This is why many places with cheap cover have a drink minimum.
Yeah, this is actually a problem for venues now that younger generations drink less alcohol.
People will drink a beer every set in a show, but they’re less likely to do that with coffee, soda, THC drink, or any other beverage except water, which most bar venues offer for free.
You can sell other drinks, food, entertainment, services, games, etc. Alcohol isn't the only thing people are able to do at night. There are plenty of activities that are possible.
I've thought the same thing. Would love if other people were into that.
I'd ask you to consider the following thought experiment. If the regulatory barriers are lower to establish a nightlife business establishment without alcohol as an option, and a large number of people want to do activities without alcohol, why do these businesses not exist in significant numbers?
It's certainly not a novel concept to open a cafe or a late night board game location. If they were sustainable businesses economically, which barriers currently exist that prevent them from being present in cities to the same extent as bars?
Alcohol doesn't just make more money because it has huge margins. It has decent margin, high profit per unit, and a magic trick: it makes people less cautious about spending more.
I have no interest in a second coke or a third coffee. I can drink tea for days, but if it feels pricey I probably only have one or two. Real estate is expensive if that's your customer profile
Alcohol is famously super high margin, though. People will pay like $5-10 for a 54¢ shot of Costco vodka or rum at a comedy club and another $5 if you mix 10¢ of cola into it, you simply can't get the same margins out of even very expensive feeling food which usually needs more labor and prep.
In addition, alcohol lowers the bar for entertainment. Comedy, music, dancing, none of it has to be as good to satisfy if people are at least a bit tipsy, which makes the performers happier, and the customers happier.