A decade ago it was impossible to buy a drink after 11.00pm in Britain unless you queued up for half an hour and paid several pounds to enter the local nightclub.
Things have changed, however. Britain has adopted a more continental drinking culture, following the recent changes to the licensing laws. In every town and city, a host of bars open way beyond ‘time’ can now be found.
While many in the past only visited clubs to carry on drinking, ‘hybrid bars’ have started competing with clubs by offering dancing and live music alongside beer, spirits and cocktails.
This has left many commentators predicting the slow death of the traditional High Street nightclub – and the more rapid demise of its out-of-town cousin, which has also suffered from the resurgence of town centre nightlife.
Competition in town centres has continued to hot up. Many towns have seen the emergence of a ‘circuit’ of bars playing loud music and offering dance floors. Revellers can hop from one to the other, perhaps reliving their holiday experiences in Spain or Greece.
Meanwhile, home cinema systems and PlayStations continue to lure teenagers and twentysomethings away from their traditional stomping grounds.
Sector is evolving
However, there are still many reasons why nightclub owners have not given up.
Firstly, the niche club – particularly those catering for a certain genre of music – continues to spring up and, occasionally, prospers.
Although this sector – exemplified by ‘dance clubs’ such as the Ministry of Sound or smaller venues hosting jazz, folk or salsa nights – is subject to constant churn, it probably offers the most opportunities for a determined entrepreneur.
If the club is lucky enough to become a cult, there will always be opportunities for brand-related diversification. However competition is almost nationwide in this sector as dedicated clubbers will travel for miles for a particular night.
Meanwhile, the increasing number of older single people in the UK has led to the emergence of a relatively untapped market which might be alienated by the youthful or raucous atmosphere of a town’s main drag.
Clubs can offer more sophisticated and calm atmospheres than bars as they can more easily control their clientele.
Traditional clubs are still viable – if they evolve. Just as bars have become closer to clubs in recent years, clubs have started to move away from their old formula.
Introduction of the ‘feeder bar’
The most obvious change for many clubs has been the introduction of the ‘feeder bar’ – a ground floor section of the property which essentially operates as a bar.
Customers can then proceed to the rest of the club at any point, subject to an entrance charge. Sometimes the feeder bar will close before the actual club.
However in some cases clubs are starting to see themselves as 24-hour operations, acting as a café-bar-restaurant throughout the day, a livelier bar in the evening, and a full-on nightclub after 11pm.
The Tiger Tiger brand in particular has led the way in developing this idea, and has targeted it at a much older age group than the standard 18-24 market.
Of course, all this requires a far greater degree of financial and personal investment than in the past, when owners lucky enough to have a town’s sole late licence could operate a run-down and shabby establishment – and still make a fortune in entrance charges and drinks sales every Friday and Saturday night.
The silver lining to this particular cloud is the fact that it will now be possible – if you are successful – to pull in customers on any day and at any time.
The dream and the reality
If owning a nightclub now seems like a dream, there is one more shock to digest: they are incredibly expensive, particularly in city centre locations – and you will be going head-to-head against the big leisure chains, who are always looking to expand by acquisition.
Increasingly they are competing with other uses. Large clubs are now facing mounting pressure from casinos after the gaming laws were also loosened.
Off-pitch, smaller venues are cheaper, but are more difficult to run. You will have to run extensive promotional campaigns in order to attract the right niche audience.
Modernisation costs are also substantial, particularly as there are more and more regulations relating to safety and overcrowding.
None of this changes the fact that a nightclub is probably the most glamorous business on the High Street. And if your club is 'specialist' in an area you’re interested in, you have that rare chance for your hobby to become your career.
Undoubtedly, although choices for consumers are increasing, there is more disposable income out there to be attracted through your doors. With the right approach, a successful business can still be established.
