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 in public buildings have 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.
Nightclubs have also come under pressure from the economic downturn, which has 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 Key Buyers Chapter
The industry is highly saturated, characterised predominantly by a large number of small single-site operators, which account for the majority of industry market share. The three largest players in the industry are expected to generate 6.8% of industry revenue in 2014-15.
To secure market share in a given district, businesses often seek to combine with restaurants or cafes to make the most of the premises during daylight hours. As nightclubs need patrons to attract more patrons, market share is difficult to secure. The appeal to potential customers predominantly comes from to the location's image, the level of foot traffic and overall atmosphere. To attract initial patrons, nightclubs must tap into current fashions and social trends... purchase to read more