Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Nightclubs - UK - May 2013

“The condition and appeal of the nightclub sector appears to be slowly deteriorating, particularly amongst over-25s. Clubs may well be forced to re-invent their proposition, as over-reliance on 18-24s and students is dangerous should volume projections for the next few years hold true.”

– Paul Davies, Senior Leisure Analyst

Some questions answered in this report include:

  • How much of a threat are hybrid bar imitations?
  • Do clubs need to appeal to a wider demographic?
  • How can clubs increase spend per head?
  • What can clubs do to change consumer perceptions of long queues and high prices?

 

The UK nightclubs market continues to struggle, as both club admissions and revenues fall victim to economic pressures and changes in consumer behaviour. Whilst the number of regular consumers has remained stable, occasional visitors are fewer in number as more over-25s leave clubbing behind.

However, the re-emergence of the market leader, Luminar, which has recently exited administration, shows that there may be a glimmer of light for clubs that are able to reinvent their proposition. Major operators are showing the confidence to invest heavily in refurbishment, whilst the likes of Novus Leisure have had success by focusing more on dining and bookable space.

Now the industry faces a dilemma as the number of students and 18-24-year-olds (its core target audience) looks set to contract, whilst many young people are still out of work in the wake of the economic downturn.

This report analyses consumers’ visiting frequency of nightclubs now, compared with 18 months ago, and looks at the activities that clubbers have experienced within venues. Clubbers’ attitudes towards nightclubs are also assessed, in addition to the factors that influence consumers’ choice of venue. The report also investigates what operators can do in order to attract the business of people who no longer go to clubs.

For the purpose of this report, Mintel defines nightclubs as establishments where the primary offer is that of dancing to music and where drink and food are offered as ancillary items. In addition, an admission fee is normally, but not always, levied.

 

Under the Licensing Act 2003, nightclubs in England and Wales must be in possession of an appropriate Premises Licence; allowing the sale by retail of alcohol, the provision of regulated entertainment and the provision of late night refreshment.

The dividing line between nightclubs and late night bars continues to be blurred, with no distinction between these different types of outlet by the licensing authorities or, indeed, the industry itself. All data within this report focus purely on nightclubs (ie excluding late night bars and pubs whose primary business is the retailing of liquor, rather than the provision of dancing).

Where hybrid concepts are included, ie bar/nightclubs, it is because these have a separate dedicated club section where an admission fee is normally levied for a substantial proportion of users. This report does not include nightclubs that are part of hotels or casinos nor does it cover lap-dancing clubs.

Where the term ‘core club’ has been used, this refers to a nightclub that focuses purely on drink and dance, rather than a club or hybrid bar which serves food or has a restaurant area.

Entertainment is ‘regulated entertainment’ when it takes place in the presence of a public audience or members and guests of a qualifying club, whether a charge is made or not. Entertainment which takes place in the presence of a private audience is only regulated entertainment when a charge is made with a view to making a profit.

The performance of live music and incidental playing of recorded music is not regarded as regulated entertainment under the 2003 Act, where they are incidental to another activity which is not itself regulated entertainment.

The spontaneous performance of music, singing or dancing does not amount to the provision of regulated entertainment and is not a licensable activity. There are also some exemptions for activities in certain premises, such as churches.

 

Take a look inside a sample report to see what you will receive: Download now.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • Figure 1: Value forecast for UK nightclubs industry, 2007-17
            • Market drivers
              • High unemployment level amongst 18-24-year-olds causes concern
                • Figure 2: UK unemployment rates, by age band (seasonally adjusted), January 2007-January 2013
              • Clubs are still picking up tail-enders
                • Figure 3: Average hour of entry to nightclubs, 2012
              • The consumer
                • Nightclub visiting habits
                  • Figure 4: Nightclub visiting habits, November 2011 and March 2013
                • Nightclub activities
                  • Figure 5: Nightclub activities experienced, March 2013
                • Attitudes towards nightclubs
                  • Figure 6: Clubbers’ attitudes towards nightclubs, March 2013
                • Ways to encourage non-clubbers
                  • Figure 7: Ways to encourage ex-clubbers and non-clubbers, March 2013
                • Factors influencing choice of nightclub
                  • Figure 8: Factors influencing choice of nightclub, by regular clubbers, March 2013
                • What we think
                • Issues in the Market

                    • How much of a threat are hybrid bar imitations?
                      • Do clubs need to appeal to a wider demographic?
                        • How can clubs increase spend per head?
                          • What can clubs do to change consumer perceptions of long queues and high prices?
                          • Trend Application

                              • Trend: Let's Make a Deal
                                • Trend: Access All Areas
                                  • Mintel Futures: Generation Next
                                  • Market Drivers

                                    • Key points
                                      • High unemployment level amongst 18-24-year-olds causes concern
                                        • Figure 9: UK unemployment rates, by age band (seasonally adjusted), January 2007-January 2013
                                      • Areas of high club density hit heavily by unemployment
                                        • Figure 10: UK unemployment rates, by region (seasonally adjusted), Q4 2012
                                      • Student numbers on the wane?
                                        • Figure 11: Trends in the number of students at higher education establishments, 2005/06-2011/12
                                      • Occasional clubbers feeling the economic pinch
                                        • Figure 12: Nightclub visiting habits, by financial situation, March 2013
                                      • Nightclubs avoid burden of legislation as alcohol-fuelled crime drops…
                                        • …but threat of Early Morning Restriction Orders presents danger
                                          • Clubbers start to show cult-like mentality
                                            • Figure 13: Number of monthly visits to late night venues (nightclubs), Summer 2010-12
                                          • Clubs are still picking up tail-enders…
                                            • Figure 14: Average hour of entry to nightclubs, 2012
                                          • … and less spend per head
                                            • Figure 15: Clubbers’ drinking behaviour, November 2011
                                          • Competition from hybrid bars and pubs intensifies
                                            • Figure 16: Leisure activity participation and frequency levels, September 2012
                                            • Figure 17: Percentage of all going out visits by sub-sector, Autumn 2012
                                          • Regular clubbers are part of the ‘mobile generation’
                                            • Figure 18: Ownership of smartphones and tablets, by nightclub visiting habits, March 2013
                                        • Who’s Innovating?

                                          • Key points
                                            • Tokyo takes clubbing back to its core roots
                                              • Figure 19: Tokyo Group Ltd director Aaron Mellor, DJing at the secret Hacienda 30th birthday party in Manchester, May 2012
                                            • Food is the recipe for success for Novus Leisure
                                              • Luminar to provide cashless experience via smartphone app
                                                • Clubs move away from ‘dance floor-only’ operations
                                                • Market Size and Forecast

                                                  • Key points
                                                    • Decline in admissions not offset by spend per head
                                                      • Figure 20: UK nightclubs admissions and revenues, 2007-17
                                                    • Forecast
                                                      • Figure 21: Value forecast for UK nightclubs industry, 2007-17
                                                      • Figure 22: Admissions forecast for UK nightclubs industry, 2007-17
                                                  • Market Share

                                                    • Key points
                                                      • Luminar retains top spot despite sell-off
                                                        • Figure 23: Leading UK nightclub operators, by number of clubs, April 2013
                                                    • Companies and Products

                                                      • Key points
                                                        • Industry structure
                                                          • Figure 24: Numbers of nightclubs and discotheques in England, Wales and Scotland, by region, December 2012
                                                        • G1 Group (Holdings) plc
                                                            • Figure 25: Financial performance of G1 Holdings Ltd, 2008-12
                                                          • The Luminar Group Ltd
                                                              • Figure 26: Financial performance of Luminar Group Holdings plc, 2006-11
                                                            • Novus Leisure
                                                                • Figure 27: Financial performance of A3D2 Ltd, 2010-12
                                                              • Tokyo Group Ltd
                                                                  • Figure 28: Tokyo Huddersfield, a converted courthouse, opened June 2005
                                                                  • Figure 29: An old courtroom converted in to a dance floor, Tokyo Huddersfield, opened June 2005
                                                                  • Figure 30: Financial performance of Tokyo Group Ltd, 2008-12
                                                                • Yellowhammer Bars Ltd
                                                                    • Figure 31: Financial performance of Yellowhammer Bars Ltd, 2009-12
                                                                  • Other multiple operators
                                                                    • Fever Bars
                                                                      • Eclectic Bars Ltd
                                                                        • Gatecrasher Clubs and Bars Ltd
                                                                          • DHP Group
                                                                          • Brand Communication and Promotion

                                                                            • Key points
                                                                              • Social media offers industry cost-effective alternative
                                                                                • Figure 32: Advertising expenditure for nightclubs and discotheques, 2010-12
                                                                              • Luminar’s expenditure drops again in 2012
                                                                                • Figure 33: Advertising expenditure for nightclubs and discotheques, by operators, 2010-12
                                                                              • Press still dominates but spend falls below £1 million
                                                                                • Figure 34: Advertising expenditure for nightclubs and discotheques, by media type, 2010-12
                                                                            • Nightclub Visiting Habits

                                                                              • Key points
                                                                                • Only a third of consumers now visit clubs each year
                                                                                  • Figure 35: Nightclub visiting habits, November 2011 and March 2013
                                                                                  • Figure 36: Nightclub visiting habits, November 2011 and March 2013
                                                                                • Clubbing is a more sporadic habit for 25-34s
                                                                                  • Figure 37: Nightclub visiting habits, by age, March 2013
                                                                                • Regular clubbers
                                                                                  • Occasional clubbers
                                                                                    • Infrequent clubbers
                                                                                      • Ex-clubbers
                                                                                        • Non-clubbers
                                                                                        • Nightclub Activities

                                                                                          • Key points
                                                                                            • Live music, food and comedy broaden clubs offering
                                                                                              • Figure 38: Nightclub activities, March 2013
                                                                                            • Live music is a hit for clubbers
                                                                                              • Figure 39: Percentage of people who liked the activity they experienced, March 2013
                                                                                            • Emphasis on food underlines clubs’ dilemma
                                                                                              • Alternative activities could bring back ex-clubbers
                                                                                                • Figure 40: Proportion of people who have experienced nightclub activities, by people who visit less than once a year, March 2013
                                                                                              • Mobile payments could provide cashless experience
                                                                                              • Clubbers’ Attitudes towards Nightclubs

                                                                                                • Key points
                                                                                                  • Private areas may help clubs to bring pre-loading in-house
                                                                                                    • Figure 41: Clubbers’ attitudes towards nightclubs, March 2013
                                                                                                  • Men are more spontaneous when choosing their final destination
                                                                                                    • Figure 42: Clubbers’ attitudes towards nightclubs, by gender, March 2013
                                                                                                  • Change of genre required for over 25s
                                                                                                  • Ways to Encourage Non-Clubbers

                                                                                                    • Key points
                                                                                                      • Two fifths of ex and non-clubbers could be enticed in
                                                                                                        • Figure 43: Ways to encourage ex-clubbers and non-clubbers, March 2013
                                                                                                        • Figure 44: Ways to encourage ex-clubbers and non-clubbers, by nightclub visiting habits, March 2013
                                                                                                      • Clubs can help over-35s to rekindle past habits
                                                                                                      • Factors Influencing Choice of Nightclub

                                                                                                        • Key points
                                                                                                          • Discounted entry could be brought forward to hit prime time
                                                                                                            • Figure 45: Factors influencing choice of nightclub, March 2013
                                                                                                          • Utilising social media to spread the word
                                                                                                            • Technology the key to cutting ‘dead time’ spent in queues
                                                                                                              • Regular clubbers are discount obsessed
                                                                                                                • Figure 46: Factors influencing choice of nightclub, by regular clubbers, March 2013
                                                                                                            • Appendix – Market Size and Forecast

                                                                                                                • Figure 47: Value forecast for UK nightclubs industry, best and worst case scenarios, 2012-17
                                                                                                                • Figure 48: Admissions forecast for UK nightclubs industry, best and worst case scenarios, 2012-17
                                                                                                            • Appendix – Nightclub Visiting Habits

                                                                                                                • Figure 49: Nightclub visiting habits, March 2013
                                                                                                                • Figure 50: Nightclub visiting habits, by demographics, March 2013
                                                                                                                • Figure 51: Next most popular nightclub visiting habits, by demographics, March 2013
                                                                                                                • Figure 52: Nightclub visiting habits, by financial situation, March 2013
                                                                                                                • Figure 53: Household technology ownership, by most popular nightclub visiting habits, March 2013
                                                                                                                • Figure 54: Household technology ownership, by next most popular nightclub visiting habits, March 2013
                                                                                                                • Figure 55: Personal technology ownership, by most popular nightclub visiting habits, March 2013
                                                                                                                • Figure 56: Personal technology ownership, by next most popular nightclub visiting habits, March 2013
                                                                                                            • Appendix – Nightclub Activities

                                                                                                                • Figure 57: Nightclub activities, March 2013
                                                                                                                • Figure 58: Experienced well-known or local band playing live music, by demographics, March 2013
                                                                                                                • Figure 59: Experienced tribute band playing live music, by demographics, March 2013
                                                                                                                • Figure 60: Experienced table service, by demographics, March 2013
                                                                                                                • Figure 61: Experienced separate restaurant area, by demographics, March 2013
                                                                                                                • Figure 62: Experienced retro-based theme, by demographics, March 2013
                                                                                                                • Figure 63: Experienced stand-up comedy, by demographics, March 2013
                                                                                                                • Figure 64: Experienced free snacks/food, by demographics, March 2013
                                                                                                                • Figure 65: Experienced taxi-booking service, by demographics, March 2013
                                                                                                                • Figure 66: Experienced silent disco, by demographics, March 2013
                                                                                                                • Figure 67: Experienced private karaoke booths, by demographics, March 2013
                                                                                                                • Figure 68: Experienced roller disco, by demographics, March 2013
                                                                                                                • Figure 69: Experienced mobile phone ordering service, by demographics, March 2013
                                                                                                                • Figure 70: Nightclub activities, by nightclub visiting habits, March 2013
                                                                                                                • Figure 71: Nightclub activities, by next most popular nightclub visiting habits, March 2013
                                                                                                                • Figure 72: Nightclub activities, by most popular attitudes towards nightclubs, March 2013
                                                                                                                • Figure 73: Nightclub activities, by other attitudes towards nightclubs, March 2013
                                                                                                            • Appendix – Clubbers’ attitudes towards Nightclubs

                                                                                                                • Figure 74: Clubbers’ attitudes towards nightclubs, March 2013
                                                                                                                • Figure 75: Most popular attitudes towards nightclubs, by demographics, March 2013
                                                                                                                • Figure 76: Other attitudes towards nightclubs, by demographics, March 2013
                                                                                                                • Figure 77: Clubbers’ attitudes towards nightclubs, by nightclub visiting habits, March 2013
                                                                                                                • Figure 78: Clubbers’ attitudes towards nightclubs, by next most popular nightclub visiting habits, March 2013
                                                                                                            • Appendix – Ways to Encourage Non-Clubbers

                                                                                                                • Figure 79: Ways to encourage non-clubbers, March 2013
                                                                                                                • Figure 80: Ways to encourage non-clubbers, by demographics, March 2013
                                                                                                                • Figure 81: Ways to encourage non-clubbers, by nightclub visiting habits, March 2013
                                                                                                            • Appendix – Factors Influencing Choice of Nightclub

                                                                                                                • Figure 82: Factors influencing choice of nightclub, March 2013
                                                                                                                • Figure 83: Factors influencing choice of nightclub, March 2013
                                                                                                                • Figure 84: Influenced by a low cost entry fee, by demographics, March 2013
                                                                                                                • Figure 85: Influenced by not having to queue at the main door, by demographics, March 2013
                                                                                                                • Figure 86: Influenced by not having to queue at the bar, by demographics, March 2013
                                                                                                                • Figure 87: Influenced by a discount on drinks, by demographics, March 2013
                                                                                                                • Figure 88: Influenced by a recommendation from a friend, by demographics, March 2013
                                                                                                                • Figure 89: Influenced by good quality food available, by demographics, March 2013
                                                                                                                • Figure 90: Influenced by an exclusive room or soundproofed pod, by demographics, March 2013
                                                                                                                • Figure 91: Influenced by a guaranteed taxi home waiting nearby, by demographics, March 2013
                                                                                                                • Figure 92: Influenced by the brand/club name, by demographics, March 2013
                                                                                                                • Figure 93: Influenced by being able to view a DJ’s playlist in advance, by demographics, March 2013
                                                                                                                • Figure 94: Influenced by ‘it was near to the pub/bar I happened to be in beforehand’, by demographics, March 2013
                                                                                                                • Figure 95: Factors influencing choice of nightclub, by nightclub visiting habits, March 2013
                                                                                                                • Figure 96: Factors influencing choice of nightclub, by next most popular nightclub visiting habits, March 2013

                                                                                                            Companies Covered

                                                                                                            • Balls Brothers
                                                                                                            • Barclays Bank plc
                                                                                                            • Eclectic Bars
                                                                                                            • G1 Group PLC
                                                                                                            • JD Wetherspoon
                                                                                                            • Luminar plc
                                                                                                            • Novus Leisure Ltd
                                                                                                            • Splendour
                                                                                                            • Tiger Tiger
                                                                                                            • Twitter, Inc.
                                                                                                            • Yates Group Plc
                                                                                                            • Yellowhammer Bars

                                                                                                            Nightclubs - UK - May 2013

                                                                                                            £1,995.00 (Excl.Tax)