The number of nightclubs in the UK has nearly halved in the last ten years, with a 30% decline since the start of the Covid pandemic.
Data from CGA and AlixPartner’s Hospitality Market Monitor shows a sharp decline in venues, reflecting a change in consumer habits as well as the impact of long periods of Covid-related closures.
Ten years ago, Britain had nearly 1,700 nightclubs, but in June the total was barely half that at 873.
It revealed a 30.0% net decline in nightclubs between March 2020 and June 2023, more than double the 13% drop in all licensed premises over the same period. In comparison, bar numbers have fallen by only 3.1% since March 2020
CGA points to longer term changes in people’s habits that have diversified the late-night market and increased the popularity of competitive socialising venues and other experience-led and immersive concepts.
Its research shows half of global consumers plan to visit venues that offer an exciting experience, with street food/pop-up markets and food and drink festivals also showing popularity with over half of consumers.
Karl Chessell, CGA by NIQ’s director - hospitality operators and food, EMEA, said, “COVID-19 hit nightclubs harder than any other licensed sector, and lockdowns were the final straw for hundreds of venues.
”But our research shows the late-night market isn’t disappearing - it’s just changing. Bars, pubs, competitive socialising venues and other new leisure concepts all now rival nightclubs, giving consumers a greater choice of venues than ever.
”Young adults remain eager for big nights out with their friends, and while clubs are still a part of their mix they are also open to alternatives that deliver memorable social experiences and good value.”
Graeme Smith, AlixPartners’ managing director, added: “This latest data highlights just how severely the night-time industry has been impacted by both the pandemic, changing consumer behaviour and increasing competition in the late night market with consumers looking for more immersive experiences (including competitive socialising).
“We’ve seen a recent explosion of experiential bar and restaurant concepts across the industry, and with bars and other venues also now staying open later into the early hours, consumers have a wide array of experiences and options to choose from. As the industry becomes increasingly dynamic, these venues need to compete more than ever to become the late-night experience of choice, whilst keeping evolving consumer habits front of mind.”
