Abstract
Nightclubs have had a tough time over the past five years and current conditions mean that they continue to struggle. Like the pub industry, they have been subject to a great deal of legislation in recent years, including the Licensing Act 2003 and the UK smoking ban, which have totally transformed the on-trade industry. Although those with a strong offer continue to do well, a number of high-profile operators went into administration in 2008 and current economic conditions mean that 2009/10 may see a similar situation.
Mintel estimates that there are now just 1,700 nightclub venues in the UK, an annual decline of around 7% in 2007 and 2008. With increased competition from live music venues, late night bars and other entertainment venues, it is perhaps no surprise that three in ten consumers who have ever been to a club agree that there is “not much need to go to nightclubs because you can drink late in more pubs and bars now”.
This report provides a snapshot of the industry at this difficult time and examines ways in which nightclubs can tailor their offer to distinguish themselves from competitors. It explores the hypothesis that “a combination of increased competition in the late-night market and the current economic downturn means that the nightclub industry could be one of the worst performing leisure sectors over the next two years”.
Main report themes:
- How are nightclubs faring in the current economic climate?
- What has been the effect of recent legislation on the market?
- Who goes to nightclubs?
- What are the characteristics of nightclub visitors and how can these be used to attract custom?
- What do people really think of nightclubs?
- What factors are most appealing to nightclub visitors?
- What added extras will help nightclub operators survive the next few years?
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