In the News

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

Jim Riley

2nd August 2022

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?

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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