A third of UK nightclubs will close by the end of 2022, according to a report

A third of UK nightclubs will close by the end of 2022, according to a new report.

This is clear from the Hospitality Market Monitor study by AlixPartners and CGA Powered by Neilson, published by the Night Industries Association (NTIA) yesterday (23 January).

The report “reinforced” the professional organization’s fears that more than a third of the pots were lost on the eve of the Covid-19 pandemic.

He also pointed out that independent businesses across the industry have been hit hardest by cost inflation and the fallout from COVID.

“We have not stopped demanding to the government that independent companies in the hospitality and nightlife sectors are the most exposed to the current crisis,” said Michael Kill, Director General of NTIA.

It went on to say that it shows a “clear contraction” in the independent operating sector of minus 13.3%, 10% more than managed companies which see a minus 3.6% fall towards the end of 2022.

It also noted the loss of 13,000 businesses over the past three years, 4,800 in 2022, with more than three-quarters of the closures occurring in the second half of the year.

“Nightclubs are one of the hardest hit by cost inflation, down 6% in the fourth quarter of this year, and now a third less than they were before the pandemic, which reflects the disproportionate price support and the difficult business environment,” the statement continued.

“There has been one new opening for every three closures over the last three years due to the pandemic, cost inflation and ongoing strike issues alone.

“The Government’s acceptance that companies will be lost to this crisis does not take into account the people who depend on this sector.”

Kill said: “The sector is suffering a lot and needs financial headroom to recover.

“The rhetoric around long-term growth and investment strategy is not addressing the immediate problems facing companies.”

The Director General of the NTIA also declared that the Government should “consider the possibility of providing additional financial support” to the sector, “rethinking the energy tax relief plan and reducing VAT for 12 months as part of the announcement in the Budget March”.

Around this time last year it was reported that the UK could be left with just 5,000 nightclubs, according to a study.

In September 2022, The Music Venue Trust (MVT) and the NTIA “welcomed” the Energy Bill Relief Scheme, but said more action was needed.

Elsewhere, Liverpool’s Meraki nightclub was saved this month after its development plan failed.