Yahoo Finance Rise in nightclub closures makes a mockery of ‘24-hour London’ claims
London is still one of the hardest global cities in which to enjoy a drink out with friends late at night.
Once the last orders bell has been sounded just before 11pm, or in some cases midnight, claims that London is a 24-hour city ring very hollow. Incredibly the situation is only getting worse. Recent figures from the Night Time Industries Association show the rate of closure of bars, clubs and pubs has not slowed down since the end of the pandemic.
Of course there has always been a natural churn as some locations fall out of favour and are replaced by new and exciting concepts. But what seems to be happening now is that the rate of closures has increased but openings are being held back by councils refusing to grant new late night licences, even in the West End.
The late night scene that London has been known for is in crisis. This week we reported worrying anecdotal evidence that takings are in freefall again after a decent end to 2023. One respected former operator Jonathan Downey told us takings are down 20% year on year, a scale of decline seen before in the run-up to lockdown or in the aftermath of the financial crisis or a terrorist attack.
This time there is no such “black swan” event to scare punters away so the decline is more worrying.
To some degree that sector is victim of a generation change. Young people just do not want to go out and drink alcohol as much as their parents did. And even if that was not the case they can scarcely afford the prices.
The industry has been sounding the alarm for four years now and nothing much has changed. In April operators will be hit by yet another cost hammer blow when the living wage goes up by a minimum of 9.8%, much more in the case of under 21s.
The latest numbers from the NTIA should be wake-up call. It is approaching last orders for London’s round-the-clock city ambitions.
