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With more Britons cutting back on booze in what appears to be a generational shift, and students changing their social behaviour, the Money team’s Emily Mee looks at what this means for our pubs and clubs – and how businesses are adapting. Read part one below and check back for part two tomorrow.
Big nights out on the town are undeniably a part of British culture – but are they about to be consigned to the memories of those of us born before the turn of the century?
Nightlife experts warn we’re losing one club every two days at the moment – and if we stay on this trajectory, we will have none left by 2030.
“The main reason we’re seeing nightclubs close is that midweek nights have completely fallen away and it’s mainly down to the cost of living,” says Sacha Lord, night-time economy adviser for Greater Manchester.
That was also the reason given by the owner of the UK’s biggest club chain when it announced a slew of closures this month.
Rekom, which owns popular club brands Pryzm and Atik, said it would be closing 17 venues because students hit by the cost of living crisis were cutting back on club nights.
Pre-COVID, Mr Lord says, students would often be clubbing midweek – but now they’re holding house parties instead to save money while they grapple with soaring rents and food prices.
“A nightclub business is not sustainable just on a Saturday night and a semi-good Friday night,” he says.
‘We used to hit the wine heavy – not so much now’
There’s another trend that is proving a challenge for nightlife businesses: Gen Z appears to be our most sober one yet.
The Portman Group’s 2023 annual survey with YouGov suggested 39% of 18 to 24-year-olds don’t drink alcohol at all.
While this is welcome in many ways, the UK’s ingrained booze culture means much of our night-time economy is centred around drinking.
Laura Willoughby, who runs Club Soda, an alcohol-free bar and shop, says older people are also starting to cut back on drinking because they want a healthier lifestyle.
“We hit the wine quite heavy as women in that generation and we’re now hitting menopause so we’re looking to cut back,” she says.
A recent report by hospitality research organisation KAM found 5.2 million fewer adults drank weekly in 2023 than 2021 – with three out of four moderating their alcohol intake to some extent.
Drinks expert Dan Whiteside believes the availability of information about the bad effects of alcohol and the rise of health influencers are also driving people to cut back.
When he was growing up, he says, people used to boast on social media about their drink-fuelled nights out – but now feeds are filled with people’s fitness and skincare routines.
“People have been going out less for quite some time,” he says. “Clubs will probably become a thing of the past.”
What about the good old British pub?
Shifts in behaviour are also hitting pubs and restaurants.
It seems inconceivable that the British pub could suffer a similar fate to the nightclub, but experts say people drinking less and choosing to end their nights earlier are forcing many of these businesses to rethink their strategy.
“We have noticed that people are going out later less often – the centre of gravity of socialising has moved to earlier parts of the day,” says Liam Davy, head of bars at steakhouse chain Hawksmoor.
He’s seen the number of cocktails sold come down a lot over the last two years, and has noticed younger people in particular are turning up less and less to restaurants or choosing to dine earlier.
“I live in Hackney which is one of the most vibrant boroughs in London in terms of late-night economy. The number of late-night businesses that have shut down or are really struggling, it really speaks to people doing things a little bit earlier,” he adds.
Nearly 400 pubs in England and Wales closed their doors for good in the first half of 2023 – with many also blaming sky-high energy bills, soaring costs of ingredients and difficulties hiring staff.
‘If they’re not drinking, they don’t go’
The problem could be lessened if nightlife businesses were able to bring sober customers in for a non-alcoholic drink.
“It’s a misconception that if people aren’t drinking, that means you’re not taking any money over the bar,” says Mr Lord.
Gross profits on soft drinks are actually better than on a pint of beer due to the heavy alcohol duties in the UK, he explains.
But Mr Whiteside says: “Most people I know, if they don’t want to drink they won’t go near a pub because they might have non-alcoholic options, but there is that history of drinking – pubs are basically designed to go and sit there socially and consume alcohol.”
In the second part of this feature, we’ll look at how some businesses are adapting – and the rise of the low and no-alcohol industry.
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