Industry Analysis & Industry Trends
The music has stopped for many nightclubs during the past five years. Legislation extending licensing hours for other drinking establishments and banning smoking in venues has removed the industry's main competitive advantage. Where 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.
Nightclubs have also come under pressure from the sharp economic downturn, which has made clubbing unaffordable for many. Those who have continued frequenting nightclubs have chosen to take advantage of cheap supermarket alcohol to ‘pre-drink' before leaving home, constraining revenue from drinks sales... purchase to read more
Industry Report - Industry Analysis Chapter
The Nightclubs industry has been hammered during the past five years. Regulatory changes introduced in the 2000s allowed pubs and bars to operate beyond 11.00 pm and removed the monopoly that nightclubs had on late-night drinking. The introduction of a smoking ban and heavy discounting of alcohol by supermarkets has hurt industry operators, with patrons spending less time in clubs and purchasing fewer drinks. Torrid economic conditions have constrained the industry, as 18- to 24-year-olds have been suffering disproportionately from high unemployment and falling disposable incomes. Industry revenue is estimated to contract at a compound annual rate of 5.5% over the five years through 2013-14 to reach £2.41 billion. Revenue is expected to contract by 4.1% in 2013-14... purchase to read more