The basic nuts and bolts of a venue owner’s business is selling food and drink. There are some venues that are set up to sell tickets to an event as well, but the primary offering that generates revenue are the drinks and items off the menu. That’s why venues that make the investment into hosting live entertainment count heavily on the act to attract a crowd. For the venue, they want the band/act to get people in the door and have them spend money. If the combination is right of a good performance, great environment and atmosphere, good food and drink, the venue increases its odds that the patron will return. Hopefully the band too!
For venue owners, the band plays an important role in several ways by:
1. Generating awareness for the establishment through promotion
2. Creating a pipeline to attract new customers
3. Helping to retain and develop repeat patrons
4. Increasing the average tab per customer
If the gig is a hit, the venue will also continue to benefit. Many times after a memorable experience, those who attended will share their experience through social media and word-of-mouth. Customers take pictures and videos of themselves enjoying the time out, and that in turn helps to boost the venue’s status in the eyes of regular customers and future ones. That social sharing is vital to generating exposure without having to pay for advertising. The venue wants people talking about the establishment, so bands provide an indirect marketing an awareness-building platform.
At the end of the day, bands serve an important role in the economics of venues that choose to host live entertainment. When the world improves, and the next time you walk into a venue with live entertainment, think about all that goes on behind the scenes.
What other areas of a venue’s business do you think bands impact?