The nightclub industry has continued to evolve in the past two years; driven by increased competition in the late night market and changing customer habits and expectations. Operators have adapted by strengthening their offer through refurbishment, re-branding and repositioning – either as lounge/bar/club hybrids or large, “destination” venues.

There have inevitably been casualties in such a difficult market, with turnover remaining largely flat in 2006, however, the industry should emerge from this period in better shape to face the next round of challenges, including the impending smoking ban.

Operators are currently seeking to differentiate themselves from their competitors in the face of over-supply, which has frequently resulted in financial difficulty, price-cutting and disinvestment. This report examines how nightclubs are coping with the extension in late licensing, alongside increased consumer expectations over the past six years.