Atlanta’s nightlife scene creates nearly $5.1 billion of annual revenue, supporting at least 41,000 jobs and totaling an economic impact of nearly $8.5 billion annually, according to the City of Atlanta’s nightlife impact report.
In the $5.1 billion of annual revenue, dining establishments saw sales of around $3.35 billion; bars, clubs and lounges saw around $278 million and performing arts venues, production and promoters saw $1.44 billion.
The report estimates that $2.6 billion in supply chain purchases and $770 million in spending by nightlife employees have contributed to the indirect economic effects of Atlanta’s nightlife.
According to the report, the nightlife industry is the fifth-largest employment sector in the city. The industry’s direct and indirect impacts comprise 4.4% of sales in Atlanta, 7.6% of its workforce and 3.5% of the city’s labor income. The industry’s annual tax revenue amounts to $67 million for the city.
Nevertheless, the report notes that the industry is still recovering from the effects of the COVID-19 pandemic and a decline in residents going out.
According to the 2024 Atlanta Nightlife Consumer Survey, around 49% of the city’s nightlife patrons reported going out less than they did one year ago. Around 18% of people reported that they’re going out more than they did one year ago, and 33% reported going out the same amount as before.
The report attributes this decline to inflation and rising expenses across the nation. Around 73% of bars and clubs, 63% of restaurants and 44% of performing arts have reported an increase in operating expenses since 2022. Revenue for bars, clubs and restaurants have not caught up with expenses, while revenue in performing arts has generally kept up. Per the report, this means businesses are resorting to layoffs, hiring freezes and other cost-cutting measures to stay afloat.
Consumer spending habits have also shifted; mortgage and credit card rates have increased, people eat out less than they used to, and student loan payments have resumed after a three-year pause for federal student loan borrowers.
Survey respondents said safety concerns were the primary challenge they face while going out in Atlanta, followed by a lack of parking and late transit options, limited late-night food options and high costs.
Moreover, customer traffic has not recovered to pre-pandemic levels for 58% of nightlife businesses, and 22% of nightlife businesses say they’ve seen higher customer traffic than before the pandemic. Bars and clubs have been hit the hardest, with around 73% of these establishments having lower customer traffic than pre-pandemic levels.
The study was created by the Atlanta Mayor’s Office of Film, Entertainment, and Nightlife, consulting firm Jon Stover & Associates, communications firm Purpose Possible, stakeholder interviews and focus groups.
“Our Administration’s Nightlife Division has already made invaluable contributions not only to the industry, small businesses and the culture — it has played a key role in non-policing efforts to bring our crime rates down over the past three years through outreach and quarterly events like Training Day,” said Mayor Andre Dickens in a Wednesday press release.
“We are dedicated to implementing smart strategies to preserve and enhance the vibrancy and safety of our nightlife industry, so it remains a cornerstone of Atlanta’s cultural and economic framework.”
The report’s strategies include increasing security measures, creating more late-night transportation options, designating a nightlife district, expanding marketing, developing long-term economic resilience and building up resources from the City of Atlanta’s Nightlife Division.
Specifically, the division recommends five action items to improve nightlife in the city:
- Nightlife safety initiative pilot that may include security grants for businesses, more streetlights and nightlife “ambassadors”
- Late-night transportation options, such as a discounted employee rideshare initiative and extended public transit hours
- Online resources and marketing platform
- Pilot nightlife district where late-night activities could be concentrated
- Updates to ordinances to help nightlife businesses, such as changing ordinances related to nighttime parking, holiday hours, noise, etc.
