Industry Analysis & Industry Trends
The music has stopped for many nightclubs during the past five years. Legislation that has extended licensing hours for other drinking establishments and banned smoking indoors has removed the industry's main competitive advantage. Late-night revellers once had to go to nightclubs, but they can now stay at a pub or bar and enjoy a wider selection of drinks, cheaper prices and a more relaxed atmosphere. This has pushed the industry into a long-term decline.
Nightclubs have also come under pressure from the economic downturn, which made clubbing unaffordable for many. On top of this, soaring youth unemployment and rising university tuition fees have hit the industry's core demographic hard... 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 £6.83 on wages for every £1.00 they invest in equipment... purchase to read more