By Jack Taylor and Sam Tabahriti
LONDON, April 10 (Reuters) – Diminishing demand for late-night drinking and rising operating costs mean London’s nightclubs are having to work harder than ever to keep their doors open.
Younger generations of partygoers are demanding more than just access to after-hours alcohol, forcing clubbing venues to focus on providing an ‘experience’ and to reinvent themselves with daytime parties, food and live acts.
Britain’s nightlife sector generated about 154 billion pounds ($206 billion) in spending last year, according to data firm CGA’s Night Time Economy Market Monitor.
But the industry has been struggling for years, as changing habits, the COVID pandemic, steep increases in operating costs, tighter licensing rules and the rising cost of living for customers all took a toll.
The number of late-night venues fell 4.1% in 2025 and is now 28% below pre-pandemic levels, including new openings, CGA data showed.
Alex Guiste, a 27-year-old social media manager and frequent club-goer, said many clubs can now feel stale if they fail to adapt to growing demand for experience-led nights out, such as DJ events and live performances.
“People are going out for the music and the experience, no longer just to drink until late,” he said. “Clubbing feels less routine now and more like something people savour.”
COSTS RISE AS SPENDING FALLS
Don’t be fooled by queues snaking outside venues in central London – club operators say survival has become increasingly difficult even when attendances hold up against the trend.
Alice Hoffmann-Fuller, who works with venues and promoters, said many clubs’ business models were built around alcohol sales. But surveys show around 39% of 18- to 24-year-olds don’t drink alcohol.
Corsica Studios, an electronic music venue under railway arches in south London, closed at the end of March after more than two decades at the heart of the city’s clubbing scene.
“We’re as busy as ever, if not busier,” Matt Wickings, its programming manager, told Reuters ahead of the closure. But bar takings were as low as they had ever been, he said, while costs continued to rise.
Where they used to take 10,000 pounds or 12,000 pounds a night, the club was now generating only 6,000 to 7,000 pounds.
The venue said last September it could no longer operate in its current form and be sure of its long-term future on the site. Corsica Studios is expected to reopen at some point, though what it will offer to customers remains unclear.
EARLIER NIGHTS, DIFFERENT HABITS
Nevertheless, industry figures insist Britain’s nights out are far from over — they are simply happening at different times, in different places, and to a different soundtrack.
Several large venues have opened or expanded in London over the past two years, betting that clubbers will still turn out – as long as their changing demands are properly met.
“Nightlife is evolving, and it always has,” said Kate Nicholls, chair of industry body UKHospitality.
Though drinking habits have moderated, Nicholls said demand for socialising remains strong across age groups, with many people prioritising experiences over late-night drinking.
“It’s not that people have stopped going out,” Guiste said. “It’s that the old club model doesn’t feel special anymore.”
($1 = 0.7468 pounds)
(Writing by Sam Tabahriti, editing by William James and Keith Weir)
