Philly’s nighttime economy is more than bars, and it’s a $26 billion industry

Philadelphia nightlife boosters have long argued that there’s a whole other city with its own rhythms and players after 6 p.m., but the size and scope of the so-called nighttime economy had never been thoroughly examined until now.

A new, first-of-its-kind report released by the city’s Department of Commerce on Wednesday, pegs Philly’s nighttime economy as a $26 billion industry that includes the jobs and sales generated by everything from theaters, transit, food trucks, bars, trucking, construction, colleges, professional sports games, gambling, and gyms.

But the report goes beyond examining the financial footprint of traditional nightlife, making a point to include essential services such as waste collection, ambulance services, hospitals, and police and fire protection.

Those people, said Night Time Economy Director Raheem Manning, are instrumental in making sure the city hums 24 hours a day, taking public transit and visiting food trucks just like their daytime counterparts.

Produced by Philadelphia-based firm Econsult Solutions Inc., the report looks at data from 2022 to 2024 to find the direct, indirect, and fiscal impact of the city’s economic activity between 6 p.m. and 6 a.m.

The analysis, which also takes into account the local spending of nighttime employees, is the latest in the city’s yearslong effort to try to understand and advance the city’s nightlife, which was kneecapped during the early years of the COVID-19 pandemic.

Manning, who was hired in 2022 for the newly minted position, pushed for an impact study that would give the city hard data. He hopes to leverage much of the information in the report as the city gets ready for a blockbuster year in 2026, when the city will host the World Cup, America’s 250th birthday celebrations, and the MLB All-Star Game.

“It’s about 2026 and beyond,” he said. “This is an opportunity for our city to really put itself on the map, to be competitive with our regional neighbors, but also to be a globally competitive city.”

Manning said the data can help lobby state lawmakers, should the city try and extend the hours for alcohol service, and local ones for extended food service consideration.

And the report is another reminder of how crucial SEPTA is to the city’s daily function as the transit system faces steep service cuts without additional state subsidies.

The report finds that about 94,300 jobs are considered to be part of the nighttime economy. That’s about 13% of the city’s jobs, yet the main takeaway is that the night sector is an “increasingly important driver of urban growth.”

Here are five other takeaways from the nighttime economy report and a separate analysis looking at Philadelphia’s music industry and economic impact.

Though bars and restaurants might be the first things that come to mind, the majority of night jobs — about 70% — fall under the bucket of essential services and night-shift industries.

The latter accounts for about 34,000 jobs in construction, transportation, warehousing, higher education, and manufacturing, creating a $6.2 billion output and $1.9 billion in annual wages.

Essential services, which like food, beverage, and hospitality, account for just shy of 26,000 jobs, create more than double the economic output of hotels and bars at a whopping $5.2 billion.

Though the number of people working as part of the “nighttime economy” has grown at a 4.6% rate since 2020, employment had yet to reach pre-pandemic levels by 2023.

Still, there were some bright spots to those years, including a tight labor market that led to competitive and increasing wages in 2022, especially in the hospitality and retail sectors.

Other details from the report might not come as much of a surprise for residents. For example, not a ton happens after 2 a.m., with 50% of “nighttime activity” taking place between 7 p.m. and 10 p.m.

Visitors tend to flock to the city on Fridays and Saturdays, following seasonal travel patterns, opting for the more moderate weather months.

The success of local sports teams and nighttime cultural festivities doesn’t hurt either. As the Phillies entered Red October in full swing in 2023, the city saw a high of 6 million visitors, according to the report.

The report looked at an assortment of commercial corridors and found Center City accounted for almost half the average weekly visits, exceeding half a million, with areas north of Market Street, including Fishtown, accounting for another 20%.

The authors of the report say the close proximity between those two sections likely boosts their overall visitation numbers. Still, areas like Main Street in Manayunk and Philadelphia Mills are also hubs for nighttime visits.

“If you look at Cottman and the Boulevard, go there on any Phillies game night and you’ll see that they have a thriving nighttime economy and have many venues there,” said Manning. “On Aramingo Ave., they’re a nice mix of having that bar, restaurant stuff, but also commercial activity that’s happening at night, whether it’s warehousing or third-shift workforce.”

Manning hopes the data help steer additional resources to those neighborhoods as the city looks to invest in nightlife.

Pennsylvania ranks fifth in the country for music industry employment. Though the tally includes jobs in instrument manufacturing, retail, local music schools, and studios, the bulk of the industry’s economic output is felt through live venues and concerts.

With some 320 businesses under its belt, the Philadelphia music industry generates $6.1 billion in economic impact, according to a separate report.

The city reaps $64 million from wage, sales, and business tax revenues, while the industry drives $121 million in tax revenue for the Commonwealth.

While the report’s authors do not make any recommendations on the matter, they do make a point to highlight nightlife initiatives across the world, including extended alcohol serving hours or 24-hour zones where certain businesses can operate nonstop.

The report also highlights safety initiatives in areas like downtown Austin, where bar staff were trained in de-escalation and harm reduction, such as overdose prevention, as well as active shooter response.

“By studying the approaches and techniques used by other cities, Philadelphia’s nighttime economy stakeholders can more effectively balance fostering economic growth with ensuring that nighttime spaces remain accessible, safe, and inclusive for all residents and visitors,” said the report.

Still, reconciling nighttime activity expansion and the concerns of residents is a fine balancing act.

Sections of the city have cracked down on overnight businesses, citing safety concerns, even those that don’t serve alcohol. Late-night food trucks have come under scrutiny in certain areas, even as the city pushes for more robust nightlife.

Harm reduction for those living in active addiction has similarly come under the microscope in City Hall, with Mayor Cherelle L. Parker and some in Council cooling on more controversial practices, such as syringe exchanges, sticking with naloxone and fentanyl testing strip distribution.

At the same time, the city announced the first cohort of businesses that completed trainings in sexual harassment prevention, human trafficking, and harm reduction in February.

The goal with the certification program is “making sure that venues are prepared for anything that may come their way,” said Manning, and that’s an ongoing effort.