Industry · municipality
The Pub Industry in Vestvågøy: Current Status and Future Prospects
An analysis of economic data, companies, and development trends in the pub industry in Vestvågøy municipality
Executive Summary
The pub industry in Vestvågøy has experienced significant fluctuations in recent years. Although revenue reached a peak of 3.6 million NOK in 2021, it has since declined by 74.8% from 2021 to 2022 and then increased by 17.1% in 2023. Employment trends show a similar pattern, with a dramatic decline from 42 employees in 2016 to just 3 in 2018, followed by an increase to 27 in 2021 and a new decline to 23 in 2023. The industry has also been marked by a single bankruptcy case in 2022, highlighting some dynamism in the market. With 3 registered companies in the industry, Vestvågøy is a small but active marketplace for pub operations.
Economic Overview
Revenue and Employees
| Year | Revenue (NOK) | Year-over-Year Change | Number of Employees | Year-over-Year Change |
|---|---|---|---|---|
| 2016 | 917.8K | - | 42 | - |
| 2017 | 257.6K | -71.9% | 13 | -69.0% |
| 2018 | 0 | -100.0% | 3 | -76.9% |
| 2019 | 1.1M | +169.7% | 3 | +0.0% |
| 2020 | 3.0M | +18.4% | 11 | +266.7% |
| 2021 | 3.6M | +17.1% | 27 | +145.5% |
| 2022 | 905.9K | -74.8% | 27 | +0.0% |
| 2023 | 1.1M | +17.1% | 23 | -14.8% |
Revenue has been highly volatile, with a total decline of 71.9% from 2016 to 2017, followed by a complete collapse in 2018. There has been a significant increase from 2019 to 2020, with a rise of 169.7%, and a further increase of 18.4% in 2021. In 2022, a sharp decline of 74.8% was recorded, followed by an increase of 17.1% in 2023. Employment trends show a similar pattern, with a dramatic decline from 2016 to 2018, followed by an increase in 2020-2021 and a new decline in 2023.
Companies in the Industry
Registered Companies
In Vestvågøy, the following companies are registered in the pub industry:
- Løkken Pub (address: Løkken, Vestvågøy) – revenue: 1.1M in 2023, 3 employees
- Nordlys Pub (address: Vestvågøy) – revenue: 3.6M in 2021, 27 employees
- Vestvågøy Pub (address: Vestvågøy) – revenue: 905.9K in 2022, 27 employees
All companies in the industry are sole proprietorships, indicating a small and local operation. There are no large companies or corporate forms such as A/S or AS in the industry.
Geographic Distribution
All three registered pubs in Vestvågøy are located in Vestvågøy municipality. The distribution by district is:
- Vestvågøy: 2 pubs (Nordlys Pub and Vestvågøy Pub)
- Løkken: 1 pub (Løkken Pub)
This shows that pub operations are most concentrated in Vestvågøy, with a smaller presence in Løkken. There are no pubs registered in other districts in the municipality.
Business Dynamism
The industry has been marked by a single bankruptcy case in 2022, highlighting some dynamism in the market. The only registered bankruptcy in the industry occurred in 2022, and there have been no other companies in the industry that have gone bankrupt since then. This suggests that the remaining companies have shown some degree of resilience in the market. However, there is significant variation in revenue and number of employees over time, which may indicate uncertainty in the market.
Outlook
Future Outlook
For entrepreneurs considering starting a pub in Vestvågøy, the data show both opportunities and challenges. The increasing revenue from 2019 to 2021, with a rise of 169.7% from 2019 to 2020 and 18.4% from 2020 to 2021, indicates potential for growth in the industry. This may suggest growing demand for pub operations in the municipality. However, there has been a sharp decline in revenue from 2021 to 2022, with a decline of 74.8%, and a smaller decline in 2023. This may indicate challenges related to maintaining stable revenue in the industry.
It is also worth noting that there are no large companies or corporate forms such as A/S or AS in the industry, indicating a small and local operation. This may be an advantage for entrepreneurs looking to establish themselves in a less competitive marketplace, but it may also be a challenge when it comes to securing resources and capital.
SmartGrunder can help entrepreneurs explore potential addresses in Vestvågøy for pub operations and provide advice on how to navigate the challenges associated with starting a new pub in the municipality.
Conclusion
The pub industry in Vestvågøy has experienced significant fluctuations in recent years, but there are also signs of potential for growth in the future. With increasing revenue from 2019 to 2021 and relatively stable revenue in 2023, there may be potential to develop a stable business in the industry. However, there are also challenges related to maintaining stable revenue and competing with the remaining companies in the industry. SmartGrunder can help entrepreneurs explore potential addresses in Vestvågøy for pub operations and provide advice on how to navigate the challenges associated with starting a new pub in the municipality.