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Club Owner Salary

Club owners oversee all of the executive, financial and administrative aspects of a nightclub establishment. The U.S. bar and nightclub industry is comprised of approximately 45,000 establishments that earn a total annual revenue of $20 billion. Club ownership salary is fragmented and varies by location, size of establishment and number of regular clientele.

  1. Salary

    • According to the Bureau of Labor Statistics, chief executives of drinking establishments comprise less than 1 percent of the total employees in the industry. The national annual mean wage for club owners is $123,250. This figure is equivalent to an hourly wage of $59.25 when factored over a standard 40-hour workweek, before taxes and benefits. According to the National Club Industry Association of America, the average annual profit for a drinking establishment is $200,000 annually.

    Startup Costs vs. Earnings

    • Nightclub owners are often independent businessmen who must personally incur the startup costs of beginning a new business, either with their own personal funds or through loans. According to the small-business resource PowerHomeBiz.com, initial licensing, permit, insurance and fire safety expenses may start as high as $33,500. Club owners must also pay out of pocket to generate initial marketing campaigns to establish a steady flow of business before generating regular profits.

    Factors Affecting Salary

    • The main factor affecting the salary of a club owner is the amount of profit generated by the business itself. Club income is dependent on seating capacity, location proximity to major populated areas and the target market. Club owners who have demonstrated success over a long period of time and who have generated a regular clientele, as well as establishments that are well regarded by particular market segments, are typically more successful than those just entering the field. Overall admission and food and beverage sales also directly impact profits and, in turn, the salary of the establishment owner.

    Relevant Background & Skills

    • Aspiring club owners benefit from any collegiate-level degree or completed coursework in business management, entrepreneurship and hospitality management; experience in the restaurant or alcoholic beverage industry is also a plus. Communication savvy is an asset to new club owners, as it benefits them in the array of marketing initiatives necessary to establish a sound client base. Familiarity with state and federal licensing and establishment operation laws are also a must.

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