Nights out to become ‘considerably more expensive’ as clubs plan price rises

The cost of a night out is set to become “considerably more expensive” as clubs and bars plan major price rises after costs soared by more than a quarter over the past year.

Industry leaders have warned there “is little else” nightlife businesses can do than pass cost increases onto customers after being struck by higher wages, rising food and drink costs and an end to Government support measures.

The Night Time Industries Association (NTIA) said its latest survey of 198 nightlife operators revealed they saw a 26% jump in the cost of running their businesses last year.

Nightclubs, bars, casinos and companies in the supply chain said this included an 18% rises in the cost of stock, including food and drink.

Meanwhile workforce costs have also leapt 18%, insurance costs have increased by 31% following pandemic disruption and utility bills have risen 29%.

“It is unfortunately the case that when you see enormous cost increases of the kind we have felt in our sector, for the vast majority of businesses there is little else they can do other than pass these on to consumers,” said Michael Kill, chief executive officer of the NTIA.

“Sadly, what this will mean is people’s well-earned nights out being made considerably more expensive, just when they are themselves struggling with their own cost of living and trying to decide which monthly expenses they can do without.”

The warning comes as customers also face jumps in energy costs and rising food bills amid the continued cost of living crisis.

The NTIA said firms have already swallowed significant costs following heavy pandemic disruption but face a “perfect storm” in April.

Businesses are set to be further impacted by an increase in National Insurance contributions, a rise in the National Living wage to £9.50 an hour, and reductions in pandemic support such as reduced food and soft drink VAT in April.

Firms also told the industry group that they are still operating at below 70% of pre-pandemic levels despite the easing of restrictions.

“These statistics show just how bleak things remain for our sector,” Mr Kill added.

“I think there is a temptation to think that, because it feels as if the pandemic restrictions are now behind us, that nightlife will just snap back to its pre-pandemic strength and everything will be fine.

“Sadly, this couldn’t be much further from the truth.”