Rekom UK has reported a strong performance across its 47 clubs and bars since reopening its venues on 19 July 2021.
The late night operator said its target audience aged 18-24 made it less likely to feel the impact of a pending recession compared to businesses with more focus on an older demographic.
The group reported spend per head increased 23% to £21.82 (2019: £17.71).
Venue EBITDA increased 112% to £26.3m (2019: £12.4m), or 40% when omitting the ‘post Covid surge’ between July-September.
There was an increase in total dwell time, with guests arriving earlier and staying longer, with a reduction in free admissions and discounting.
Rekom UK said its young guests had lower levels of exposure to the cost-of-living crisis, with the majority having no major financial burdens, who view a night out as an affordable treat.
More broadly, the company said history shows socialising remains relatively stable, even in hard times,
Meanwhile, analysis of available public company results of the last pre-covid recession (2008/9) shows those that operate in town and city centre sites, in part or in the main, performed better than most in the wider leisure sector and other areas of discretionary leisure spending.
Peter Marks, chairman of Rekom UK commented: “We recognise that many operators are struggling though, particularly those with covid debt. A simple, if temporary, drop in VAT to 12.5% or rates relief will help all hospitality businesses and we support efforts to get this assistance. Yet we are sceptical as to whether the government can or will help further.
“That said, Rekom UK is in rude health. Our revenues and margin shave improved dramatically to exceed 2019 levels and are now stable, driven by our industry-leading venues and continued focus on good value for our guests. A visit to any REKOM UK venue still only costs, on average, circa £20.
“Looking ahead, whilst we cannot control the global economy, we know that good value, well-invested propositions thrive through times of adversity. We will continue to focus on our guests and doing what we do best, creating fun, safe nights out, to ensure that REKOM capitalises on demand to emerge from these challenges stronger than ever.”
