The Night Time Industries Association (NTIA) has revealed that almost 400 clubs in the UK have closed permanently between March 2020 and December 2023, averaging out at 10 closures a month or two closures per week. Experts have said that less drinking by young people and a greater variety of evening entertainment opportunities may also have played a role in declining nightlife attendance.
Peter Marks, the producer of nightclub chains including Pryzm and Atik, has said that cost of living pressures on students are “singularly the biggest issue that we face.” He explained that students are going out less and spending less, making it difficult for the club industry. However, others suggest that research conducted prior to the living cost crisis showed young people drinking less alcohol. The NTIA has also noted that the pandemic has contributed to declining attendance at nightclubs.
Rekom, the owner of Pryzm and Atik, announced the closure of 17 of its venues, including clubs in Birmingham, Leeds, Nottingham, Portsmouth, Plymouth, Dartford, Romford, Windsor, Watford, and Wrexham, with the loss of around 500 jobs. Historically, Rekom has done well with large nightclubs in city centres aimed at students.
Rekom has faced increased bills and rents and, with the National Living Wage, an increase in staff pay. Catherine Shuttleworth, a retail analyst, has suggested that problems faced by Rekom are the result of young people having more choices for where to spend their money. The drinking habits of those aged under 25 appear to be changing too, with a third of those surveyed by the NHS having not consumed alcohol for over a year. Meanwhile, demand for no and low alcohol drinks at Tesco has risen significantly.
Peter Marks has urged the UK Government to reduce VAT rates to help the hospitality industry, saying that “the night time economy is going through a tough time. It does need some help. I believe the only sort of help that is material and will make the difference is actually a VAT cut to 10%.”
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