The UK’s economic future is precarious, especially if Brexit goes badly. With everything uncertain, it’s worth looking at the country’s nightlife. UK dance clubs and bars are big businesses, with an estimated turnover of £10 billion each year. The UK has 23 million drinkers, who spend on average £5 a go going out drinking twice a week – that adds up to an eye-watering £41 billion per year. In this article, we’ll answer the question: are dance clubs good investments in the UK?
Are Dance Clubs Good Investments in the UK?
The nightclub business is a lucrative one. According to nicelocal.co.uk, there are already 61 dance clubs located in London city alone. Dance clubs in the UK can be both a good investment and a bad one, depending on how they’re run.
There are various reasons why dance clubs are good investments, particularly in the UK.
1. UK’s Nightlife Is Thriving
The UK’s nightlife is booming and shows no sign of slowing down. There has been a massive growth in the number of UK dance clubs over the last several decades. The number has increased from 500 in 1980 to more than 4,000 today. It’s not just dance bars that are thriving: there are 2,300 pubs open for business at night and 7,000 restaurants with A1 licenses (allowing them to serve alcohol late into the evening). This demonstrates the popularity of late-night drinking and entertainment.
2. UK’s Nightlife Is Worth Investing In
The UK’s nightlife industry is worth investing in. It’s expected to continue growing over the next several decades with an increase in the number of people going out and spending big on alcohol. Over one-third of the UK’s population are actively involved in the UK’s drinking culture at some point during their lives.
3. UK Nightlife Is Popular
The average takings per week per club are £28,000. Most of this comes from alcohol sales (75% to 80%). The number of drinkers in the UK hasn’t been as high since the mid-90s. Alcohol consumption has been steadily increasing every year since 1998 and seems set to continue rising. Young people are particularly fond of their drinks: 75% of young people leave the house at least once a month to go out drinking. That’s currently 1.6 million drinkers aged between 16 and 24. That number is set to increase in years to come.
There are also various reasons why dance clubs are bad investments in the UK.
1. The Competition Is Fierce
Competition is fierce. If you want to open a club, you have to have a unique selling point (USP) in order to stand out from the crowd. There are already 450 bars and nightclubs in Shoreditch, which gives you an idea of how saturated the market can be. You need to make your club something special if you want to succeed.
2. UK’s Nightlife Is Overpriced
The UK’s nightlife is overpriced. Dance clubs in the UK charge between £15 and £60 a go (before tax). In some cases, they can be as expensive as £100! Even though you might be making a small profit, it’s not worth it when you’re swamped with unskilled workers, high rents, costs and other overhead.
3. UK Nightclubs Are Failing
In order to create a successful club and make a profit, you have to have a successful business. Unfortunately, the UK’s nightlife hasn’t been as popular as it used to be. The number of visitors has been gradually declining for the last ten years and has been falling over the last five years. This is attributed to the rise in the cost of living and competition from supermarkets, which are selling alcohol at lower prices than bars and clubs. This trend will continue until something changes for the better.
In conclusion, UK nightlife is indeed good for business right now, but the time might be better spent on something with better prospects. Dance clubs are a risky investment in the UK because they have lower turnover, less profit and less popularity than they did ten years ago.