There are two pits supposedly housing five bears, but we saw four when we went. The habitat is not exactly ideal, but a wonderful naturalistic habitat on the Aare is underway and might be completed in the next couple of years. You can even buy food to feed the bears!
Next to the bear pits is a kiosk with souvenirs and a "Bern Show." My guidebook warned me that it was "too cheesy for its own good." I should have listened. While the multimedia show is free, I'm not sure it's worth 20 minutes of your life. You don't get much information out of it and the second half of the program merely plays sappy music while showing you postcard pictures of Bern.
You're better off skipping the show and going straight to the Alte Tramdepot, Brewery and Bar. The beer is fantastic, the prices are acceptable, and it's not ONLY tourists you'll find drinking there.