Industry Analysis & Industry Trends
The music stopped for many nightclubs over the past five years due to legislation that extended the licensing hours of other drinking establishments. Nightclubs have lost their competitive advantage because late-night revellers can now stay in pubs or bars with a wider selections of drinks, lower prices and a more relaxed atmospheres. As a result, the industry has entered into a long-term decline.
Approximately one-quarter of nightclubs have closed in the past decade as operators have struggled to respond to new challenges from regulation, licensing, planning, business rates and policing. Many consumers purchase cheap supermarket alcohol to drink before going out rather than buying more expensive drinks in establishments, constraining industry revenue... purchase to read more
Industry Report - Industry Analysis Chapter
The industry has performed poorly over the past five years. Regulatory changes introduced in the 2000s allowed pubs and bars to operate beyond 11.00 pm, thereby removing nightclubs’ monopoly on late-night drinking. Changes in drinking habits and supermarket discounts on alcohol have led to patrons spending less time in clubs and purchasing fewer drinks. Increasing university tuition fees have encouraged students to be more guarded with discretionary spending, threatening industry revenue. However, this has been offset by a decrease in the rate of youth unemployment as young people tend to spend more on nights out.
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