Why Businesses Fail | We're Down to the Last 1,100 Nightclubs in the UK

20% of the UK's nightclubs have closed their doors for the last time since March 2020. Which leaves just over 1,100 venues still trading.

The Night Time Industries Association has just issued a report highlighting the decline in the nightclub market as it struggles to recover from the pandemic (and perhaps other longer-term issues).

Amongst the factors listed as causing increasing rates of nightclub business failure are:

• High business debt & gearing (particularly amongst those businesses that took on debt to survive closures during lockdown)
• Growing energy costs - with the worst still to come as commercial energy tariffs rise in price later in 2022
• Workforce challenges, such as difficulties in staffing
• Increased insurance premiums
• Landlord pressures for higher rents
• Cost increases for drinks
• Pressures on household disposable incomes leading to low demand

We might add to this list, outrageously over-priced drinks and poor music - though the NTIA don't specifically mention those.

Who would want to open a new nightclub business these days?