Nightclub sector trends

The nightclub sector in the UK has seen a shift away from traditional music venues and towards more personalized experiences. In response to this trend, many UK nightclubs now offer immersive viewing and sensory environments along with exclusive innovative drinks menus. From high-tech laser displays to bottle service and professional DJs, British nightclubs are constantly striving to differentiate themselves as they compete for new customers. The growing prevalence of health and wellness movements – alongside changing consumer habits – have led these clubs to up their game in terms of offering enjoyable live entertainment which should ensure the continued development of this sector.

Night clubs became a common sight on Britain’s High Streets with the emergence of the dance music scene in the late 1980s. Millions of young people enjoy going clubbing on Fridays and Saturdays, and clubs now attract a wide variety of women to what was once seen as a lads’ night out. The popularity of going out on other days of the week has also grown in recent years, especially on Thursdays and Sundays.

Nightclub industry market tends

As a result of its association with drug taking and dealing, the club scene has received bad publicity over the years. Late night clubs have worked with licensing and policing authorities to create safer clubbing environments by combining alcohol and drug consumption with hazards such as overheating and dancing until exhausted.

‘Binge drinking’ and other anti-social behaviour related to alcohol misuse has heightened concern in recent years. Mandatory licensing conditions introduced in 2010 ban all irresponsible drinks promotions, and the Home Office continues to combat antisocial behaviour and drug and alcohol abuse. Local authorities and other organisations interested in evening and night economy management are increasingly implementing Purple Flag and Best Bar None schemes.

Private Security Industry Act 2001 introduced a licensing system for door supervisors in England, Wales and Scotland from 2004/05 as part of tackling problems such as drug misuse and late-night disturbance and disorder, requiring that they be licensed and on the Security Industry Authority (SIA) register. In 2010, Northern Ireland was included in this requirement.

Some night clubs have started asking their door supervisors to breathalyse anyone who appears drunk and turn them away if the reading is over the club’s limit due to the increasing trend of ‘pre-loading’ (drinking at home before going out for the evening). There is usually a limit between 80 and 100. With this approach, conflicts can be avoided since the supervisor’s decisions are no longer personal but are based on impersonal rules set by the club. A premises licence is also protected by the policy.

Despite the fact that many people continue to go out in the evenings, night clubs have suffered as a result of the rise of late-night bars and pubs that offer dancing as well as entertainment – a significant number of pub-goers are now avoiding nightclubs. Thus, entry fees and drinks prices are under pressure due to the highly competitive business. Due to licensing legislation, pubs can now extend their hours, putting them in direct competition with night clubs for late night business. People looked for cheaper alternatives to nightclubs during the late 2000s and early 2010s due to the challenging economic climate. Approximately 1,750 nightclubs were operating in 2015, down from 3,150 in 2005, according to the Association of Licensed Multiple Retailers (ALMR). Furthermore, late licences, smoking bans, and increases in tuition fees from early 2010 all had a negative impact on nightclubs, along with competition from pubs with late licences.

The Association of Licensed Multiple Retailers Benchmarking Report 2017 reports that nightclub revenues have been falling for several years and are expected to continue to fall through 2020. Ibis published a report in April 2018 confirming the industry’s long-term decline. The decline of nightclubs has been contributed to by competition from pubs, especially those that have dance floors. Besides facing competition from pubs, nightclubs also face the following challenges:

• Expensive entry fees
• Expensive drinks
• Not liking the music
• Overcrowding

Furthermore, pubs are now allowed to operate as live music venues due to recent changes to the law covering live and recorded music. If the audience does not exceed 500 people, venues are no longer required to have a license to play amplified live (or recorded) music between 8am and 11pm. In the hours of 8am to 11pm, no license is required for unamplified music, no matter how big the audience.

In London, 35% of live music venues have closed since the mid-2010s. A Music Venues Taskforce was formed in 2015 by the Mayor to report on the reasons for the decline and to develop a rescue plan. Many factors contributed to this decline, including:

• Solo artists are becoming more popular than bands
• Competition from high quality productions at places like the O2 arena
• An increase in ticket prices in the midst of high property prices and a slow recovery from the financial crisis (made worse by the vote to leave the European Union in June 2016).
• The added expense imposed due to licensing, policing and health and safety issues
• International competition
• A lack of investment
• Business rates

There is a lot of competition for the leisure pound. In order to meet the challenge of pubs and other venues, you’ll have to think about what you can do. Consumers’ disposable incomes were put under pressure by rising inflation following the Brexit vote, but spending on entertainment increased in 2017, with millennials spending in pubs and bars and at home. Your club needs to be attractive to your market in order to capitalise on this trend. The music could be different in different rooms, the number of people could be limited to avoid overcrowding, and the entry prices and bar prices could be reviewed.

Keep up to date with developments

The UK hospitality industry is in the midst of a period of revitalization that could make it one of the most lucrative industries in the country. This is why the UK Hospitality trade show, an event specifically for industry professionals, is such an important opportunity for those striving to make their mark in the field. With leading chefs, vendors, and entrepreneurs from all over the country assembling in one place to share lessons and insights, this event has become a key moment for those seeking best practices and fresh ideas.

For those ready to jump on board and join the UK hospitality trend, attending this show needs to be part of your playbook. You can stay up to date of the laters trend and legal issues faced by nightclubs by joining a trade association. As the UK’s leading late night operator’s association, UKHospitality represents their interests. As a member, you will be able to take advantage of a wide range of benefits as it works closely with the government, licensing authorities, and the police.

Conclusion

The nightclub industry in the UK is subject to ever-changing trends. Consumers are becoming increasingly conscious of their ethical and environmental impact when selecting places to spend time and money. Hence, UK nightclubs have had to adapt in order to keep business afloat. Sustainable practices are becoming increasingly popular, with some clubs opting for renewable energy sources or recyclable materials, as well as the introduction of plant-based choices on their menus.

Additionally, some establishments offer discounts on entrance fees and drinks, creating an incentive for people to choose them over competitors. Overall, by actively engaging in sustainability efforts, nightclubs in the UK can become more competitive in the market while also helping care for their environment as well as dealing with the ever changing trends within the nightclub sector.