The late-night sector has been struggling for the last few years. With COVID and the cost of living hitting the nightlife industry extremely hard, here are some things to consider.
Which bars and clubs across the UK are closing down and why?
Since the COVID-19 lockdown, in March 2020, the entertainment industry has taken a massive hit. According to CGA, the recent closures of pubs, bars, and clubs correlate to the fall of the night time economy. This can mainly be dated back to when COVID restrictions were implemented because this sector was most heavily impacted, due to its social nature. For the majority of entertainment venues that managed to survive such a difficult time, they now seem to be struck by the cost of living crisis and are struggling to remain in business.
The Yorkshire Evening Post reported on the popular underground Leeds nightclub ‘Wire’ announcing its unfortunate closure effective in June, due to the cost of living crisis. At the heart of the city centre, this is one of many venues that will be missed in Leeds. However, the list goes on as clubs Atik and Pryzm across the country have now shut down. According to The BBC, the blame is being redirected onto students, as they feel less inclined to go out into town. However, therefore failing to adequately acknowledge that a combination of a post COVID-19 society mixed with an increase in the cost of living will inevitably leave students with no choice but to miss out on usual forms of entertainment.
How does this affect students?
Ruby Wileman, a University student in Liverpool, expressed that the rivalry between existing events and events companies has increased as a result of demand from students for cheaper but fun nights out. In such a challenging time for the events industry and operating venues events such as Tropiloco, which has expanded to other cities including Liverpool, Leeds and Manchester, are running and adapting themselves based upon the needs of its consumers which is aiding its success. Click below to find out what Ruby has to say, as a student, on the decline of the night time economy but the success of Tropiloco.
There’s people that will hand you out free shots if you come in, and get a drink and a free shot. I’ve been in a couple of those before, early on even in Freshers week, and they were very very empty.
Ruby Wileman, Liverpool student
In response to a Twitter thread posted commenting on Sky News coverage of the decline in nightlife, some comments were made by users.
How is the night-time entertainment sector, along with other industries, being affected by rising living costs?
Mark Abbott, a Finance business partner in Operational policing, in Yorkshire, offered some perspective on the struggles that many industries across the UK are currently facing and have been for an extended period. Below are several audio interview clips with Mark, discussing his personal struggles with increasing costs in his career, and his perspective on the ways the cost-of-living crisis has impacted how we interact and consume different businesses.
Alongside this, it is not just the night time entertainment industry that inflation has affected. Claire Hignett, an independent beauty business owner in Chesire, shared some details of her experience navigating her self-employed venture. Claire comments, “The cost of living is an absolute joke. As a small business like mine, the beauty industry is failing as people can barely afford food to feed their families let alone treats on the side”. She also added, “if this means getting a part time job for reassurance then that’s what has to be done”.
It’s sad because the job you love and have worked so hard at building is just not enough in this cost of living crisis.
Claire Hignett, small business owner.
What’s next?
The Night Time Industries Association have requested support from the Chancellor, with the upcoming budget. They have asked for a reduction to 10% on the VAT rate (including alcohol) for the next year, Lower Business Multiplier (this is a government set tax rate), and to restructure the Energy Relief Scheme in favour of rational energy rates across the sector.
A handful of events companies in Newcastle make a significant effort to reduce event costs as much as they can, as they are aware of how deeply the cost of living crisis is also affecting them. For example, events company Groovement UK provide weekly events at World Headquarters for no more than £5, with tickets usually priced at around £3.50 or less. Additionally, Tropiloco frequently host giveaways and free tickets around campus for students.
These are small but impactful steps that can be taken throughout the night life industry in order to ensure the satisfaction of students and businesses simultaneously. However, this does not take away from the extreme costs and work that goes into such events.
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