The Bar Industry in Drammen: Current Status and Future Prospects

The bar industry in Drammen is a dynamic but fluctuating sector with 16 registered companies (out of a total of 25 in the municipality) and combined sales volume exceeding 72 million NOK in 2024. The industry has shown both strong growth and challenges, with an EBITDA margin of 10% and an average labor cost of 25 million NOK. Two bankruptcies have been registered, but most companies are operational. Drammen is a central city in Viken, and the bar industry is particularly concentrated in the city center area.

Sales and Employees:

• Sales: 72.6 million NOK in 2023, with a decline of 9.2% in 2024 and 30.9% in 2025. There was growth of 67.1% between 2021 and 2022.
• Employees: 226 employees in 2026, with a decline of 27.1% in 2024, but an increase of 30.1% in 2025.

Key Figures:

• EBITDA margin: 10% (2023), with an average labor cost of 25.0 million NOK.
• Gross margin: 68%, and operating margin of 3%.
• Average income per employee: 585,900 NOK (2023).

Key Companies:

Organizational Forms:

• AS is the dominant form (13 companies, 183 employees, 73.0 M operating result).
• There are also some ENK companies, but they have no employees or sales.

Bankruptcies:

• Two companies (Moai As and Moker As) are registered in bankruptcy, but they have no sales or employees.

Activity in Drammen:

• Drammen: 13 companies, 183 employees, 72.6 M sales, 7.3 M EBITDA.
• Other Areas: Mjøndalen has two companies (Charr786 V/ahmed Yar Khan and Club Paradise As), but they have no employees or sales.

Key Locations:

• Tollbugata, Bragernes torg, and Eliesons gate are main locations for bars.
• There is potential for development in other parts of the municipality, especially with a focus on tourism and culture.

Competitiveness:

• Drammen has a high concentration of bars, but it is possible to develop unique offerings in less visited areas.

Bankruptcy and Stability:

• Two companies (Moai As and Moker As) are in bankruptcy, but they have no sales or employees. This indicates they have not been operational for a long time.
• Most companies have positive EBITDA, although there are variations (e.g., Heidi's Bier Bar with -522,000 NOK EBITDA in 2023).

Growth and Decline:

• Sales had a sharp decline of 39.8% in 2020, but recovered with +67.1% in 2022.
• Employees had a decline of 27.1% in 2024, but an increase of 30.1% in 2025.

Outlook:

• The industry has shown resilience, with growth in both sales and employees in 2025 and 2026.

Outlook for Entrepreneurs

Opportunities:

• Drammen has a stable but fluctuating bar industry with growth potential, especially in 2025 and 2026.
• It is possible to develop unique offerings in less visited areas, given the high concentration in the city center.
• The 10% EBITDA margin and 68% gross margin indicate that it is possible to operate profitable bars.

Challenges:

• The industry has shown significant variation in sales and employees, with a decline of 30.9% in 2025.
• Bankruptcies have been registered, although they are not representative of the entire sector.

Recommendation:

• Entrepreneurs should consider focusing on unique offerings and quality, as well as leveraging Drammen's tourist attractions and culture.
• It is also important to follow local regulations and economic development trends.

Broader Industry (Bar / Club):

• Companies: 28 companies in the municipality, with 251 employees in 2026.
• Sales: 61.7 million NOK in 2025, with a decline of 29.6% from 2024.
• Employees: 251 employees in 2026, with an increase of 8.2% from 2025.

Peer Companies:

Contrast:

• The bar/club sector has higher sales and employees than the bar sector, but with lower EBITDA margin (10% vs. 10%).
• It is possible to develop both bars and clubs in Drammen, with a focus on unique offerings and quality.

The bar industry in Drammen is a dynamic but fluctuating sector with potential for growth and development. It is possible to operate profitable bars with a 10% EBITDA margin and 68% gross margin. Drammen has a high concentration of bars, but it is possible to develop unique offerings in less visited areas. Entrepreneurs should consider focusing on quality and unique offerings, as well as leveraging Drammen's tourist attractions and culture. It is also important to follow local regulations and economic development trends.