In early February 2024, Rekom (the owner of Pryzm and Atik nightclubs) announced that 17 of its venues across the UK would face closure resulting in 500 jobs lost. Peter Marks, the CEO, blamed students being hit by the cost-of-living crisis as a key contributor to the loss of profits. But does this reveal the full truth?
Whilst the cost of living has undeniably risen, with more students struggling to get by, it’s hard to believe that clubbing is top on the list when it comes to budgeting. Perhaps, more students are now gravitating toward a different nightlife experience; one that is less corporate-club-focused and safer. And is that so bad?
The Downfall of Rekom – and Clubbing
In late 2023, Rekom announced that several of its biggest nightclub venues were facing closure. This included Pryzm in Watford — formerly Ocean — as well as 16 other venues across the UK. In televised interviews, Peter Marks blamed falling student numbers for the closures.
Hit by the cost-of-living crisis, Marks stated that more students are likely to pre-drink in their accommodations and cut down on going out mid-week. He visited Leeds to investigate.
‘I walked around between 7pm and 11pm, and there were no more than 200 people out in the city. Two years before, it would have been really quite busy and buzzing.’
Marks goes on to blame higher wages putting a strain on profitability. Accounting for 30 to 40 per cent of bills, he explains that for each £100 earned, between £30 to £40 of that is spent on labour on top of increasing rent and bills.
Furthermore, new data suggests that it is not just Rekom facing these difficulties. The Night Time Industries Association (NTIA) suggest that nearly 400 clubs have closed their doors since March 2020, amounting to 10 closures a month and two every week.
Priced out of clubbing?
Students face several difficult decisions when at university, one of which is budgeting and financial responsibility. This is exacerbated by high inflation rates seen in the UK in recent times. In this instance, Marks is right to suggest that students face more of a struggle to keep afloat now than they may have done in the past.
Data published by the National Union of Students reveals a hidden student job crisis. Out of almost 1,400 students surveyed, 69 per cent work part-time on top of their studies. Furthermore, 1 in 5 work more than 20 hours a week, an obscene amount to work on top of university commitments. When asked why, ‘62% of those working say they do so to afford to eat and pay bills.’
Hence, priorities have changed. While university may have once been about going out, getting drunk and crawling home at 8 am in time for a lecture, today’s students are working in their free time to be able to afford the bare necessities such as paying their rent, bills, and doing the weekly food shop.
A Different Trend Altogether?
What if it’s not just the cost-of-living crisis that has led to the closure of clubs? Whilst students are increasingly working part-time jobs and the cost of going out has increased, there is still a party culture at many universities. Experts suggest a slightly different reason for the closure of clubs such as Pryzm and Atik.
The first is a trend towards young people drinking less and, in some cases, not at all. This predates the cost-of-living crisis. The latest NHS figures suggest that a third of people under 25 have not drunk alcohol for at least a year. Furthermore, according to DrinkAware, those least likely to drink are aged 16 to 24 and in 2019, 20 per cent of adults aged 16+ were non-drinkers. With nightclub culture traditionally associated with heavy drinking, it is not difficult to understand why attendance rates have fallen.
However, Retail Analyst Catherine Shuttleworth blames Rekom’s problems on young people having more of a choice on where to spend their money. She mentions bars with darts and pool, many more food options and pop-up events, especially in the summer. Perhaps it is not that students are inherently going out less, just choosing to spend their money on more diverse pursuits. In response to this demand, businesses have shifted to cater for a wider range of preferences, whether that is a beer garden or pop-up park festival.
Another recent — and little talked about — factor that may have contributed to the demise of clubbing, is the concern for safety surrounding spiking. Since January 2021, the number of spiking reports has increased from 316 to 1746 by the summer of 2023. Data published by the NPCC in December 2023 reveals that 74 per cent of spiking victims are women, with a majority of spiking incidents left unreported. Given the increased rate of spiking incidents, it’s not unreasonable to assume that women have become more wary of large nightclubs, preferring instead smaller settings, such as bars, that feel safer.
A Mix of Factors
For many, the closure of Pryzms and Atiks across the UK marks the end of an era. However, to suggest that financial difficulty is the main reason behind the closure of clubs is too simplistic. Young people are drinking less, gravitating toward other drinking-involved activities, and are more aware of the dangers surrounding clubbing. Realistically, it is up to the nightclub owners to decide how best to deal with these challenges to make student clubbing safer, more affordable, and a more inclusive experience.
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