In the News
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?