Britain has lost a third of its nightclubs since Covid as the cost of living crisis, higher costs and a changing youth culture have ripped through the sector. Latest figures from the Night Time Industries Association (NTIA) shows that in December 2024 Britain had 2,264 nightclubs, late-night bars and casinos, down 3% in a year and 25.2% down on the pre-COVID level of March 2020. Nightclubs have borne the brunt of these closures, with numbers having dropped 33.2%.
However, the figures also revealed changes in tastes for evening entertainment with a big increase in the number of “competitive socialising” venues where groups of friends or colleagues play games such as golf, darts, cricket and even football while enjoying a drink and food. This largely explains the success of bars, which rose in number by 5.4% over the 12 months. There was particularly sharp growth in themed bars, up 24.4%, cocktail bars, 17.4% higher, and craft bars, up 14.3%.
The Night Time Economy Market Monitor from CGA and NTIA also showed visits to venues are getting earlier. More than two thirds of NTIA members report falling revenue in post-1am trading, while far fewer report a drop in the 6pm to 8pm period. However, despite the bright spots only 13% of NTIA members feel optimistic about the market over the next 12 months, while 65% feel pessimistic. Reuben Pullan, CGA by NIQ’s senior insight consultant, said: “The COVID crisis and relentless pressure on costs have created enormous challenges for hospitality businesses in the last five years, and late-night clubs and bars have been hit hardest of all. However, many other segments have been remarkably resilient, and the growth in new types of venues like competitive socialising bars shows the evening economy isn’t disappearing—it’s just changing. With the right support from government, night-time businesses can power not just hospitality but Britain’s economic growth and job creation.”.
Mike Kill, the Night Time Industries Association’s CEO, said: “"This new report highlights the resilience and challenges of our sector. With consumer spending reaching £223.5 billion in 2024 and the night-time cultural economy growing by 3.2%, the importance of live music, late-night venues, and cultural spaces is clear. “However, rising operational costs and inflationary pressures are still straining businesses. Employment trends show a vital yet transforming workforce, with significant declines in pub, bar, and licensed club employment, but growth in sporting venues, clubs, and gyms. Targeted support and strategic policy interventions are essential to safeguard the future of this critical pillar of the UK economy.".
