CGA and NTIA Monitor shows new costs jeopardise evolution of late-night economy

The quarterly Monitor—produced by CGA by NIQ and the Night Time Industries Association—shows that that while the number of late-night bars, nightclubs, casinos and other venues has fallen by 25.1% in the five years since the start of the COVID-19 pandemic, it increased by 2.0% over the 12 months to end-March 2025.

The research indicates particular resilience in bars, where numbers have risen by 7.6% since March 2024—equivalent to nearly 7 net new openings per week. Growth has been powered by interest in experience-based nights out, including at competitive socialising and themed bars. Some of these bars have succeeded nightclubs, whose numbers have dropped by 33.8% since March 2020.

The night time economy has also been boosted by an increase in ‘cultural’ licensed venues including cinemas, theatres and arenas, where numbers have increased by 4.5% in the last 12 months.

However, the sector’s recovery from the upheaval of COVID-19 restrictions is compromised by additional costs from April, including increases in National Minimum and Living Wages and National Insurance contributions. A recent survey of over 500 nightlife businesses by the Night Time Industries Association found that 40% expect to close within the next six months without urgent financial support.

The Night Time Economy Market Monitor provides many more insights into Britain’s night time venues, including the relative resilience of operators in the South and South East of England compared to regions including the East, South West and Wales. Late-night venues in capital cities have also been more robust than those in towns, with London, Edinburgh and Cardiff all increasing their share of their countries’ sites in the last five years, by 4, 3 and 5 percentage points respectively.

Karl Chessell, director – hospitality operators and food, EMEA at CGA by NIQ, said: “These numbers show how hard businesses in late-night hospitality have worked to build back from the turmoil of COVID-19. They have also adapted very well to consumers’ changing leisure needs and are shaping a new and dynamic night time economy. However, extra costs and ongoing inflation, alongside hesitant consumers spending, mean many businesses’ cash reserves are rapidly being depleted. Urgent and targeted action is needed to tackle this jeopardy and ensure hospitality can help kickstart an economic revival.”

Michael Kill, CEO of the Night Time Industries Association, said: “While our sector is remarkably resilient – modest figures of growth should not be mistaken for recovery. What we are seeing is the barest flicker of life after five years of near-collapse. A 5% growth in nightclubs sounds positive — until you remember we’ve lost 34% of them since 2020.

“The reality is the night time economy remains in a deep crisis, influenced in part by recent policy decisions such as those outlined in the Autumn Budget. Without urgent intervention, the small signs of resilience we’re seeing now will be put out entirely – and disproportionately so on independent venues deeply cherished by and so valuable to communities.

“It is essential that the Government considers structural changes—from public transport and safety to the additional tax burdens introduced this April. Appetite for meaningful, shared cultural and social experiences is strong. It’s up to policymakers and industry leaders alike to ensure the infrastructure exists to support it.”