Industry Analysis & Industry Trends
The music has stopped for many nightclubs during the past five years. Legislation that extended the licensing hours of other drinking establishments removed the industry's main competitive advantage. This legislation pushed the industry into a long-term decline, which has continued throughout the past five years. Whereas late-night revellers once had to go to nightclubs, they can now stay at a pub or bar and enjoy a wider selection of drinks, cheaper prices and a more relaxed atmosphere.
Operators are increasingly facing common challenges regarding regulation, licensing, planning, business rates and policing. Consequently, nearly half of nightclubs in Britain have shut their doors in the last decade, according to the Association of Licensed Multiple Retailers (ALMR)... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity measures the relative importance of human labour and capital investment to the operation of a business. IBISWorld uses wages as a proxy for labour and depreciation as a proxy for capital investment. Using this measure, the Nightclubs industry is estimated to have a moderate level of capital intensity. Although employees are vital to serving patrons and maintaining security, equipment is also required to deliver high-quality music, provide appropriate lighting and refrigerate drinks. Overall, the average industry operator is expected to spend £6.16 on wages for every £1.00 they invest in equipment... purchase to read more