The number of bars, clubs, casinos and similar late-night sites have fallen by 1% in the first quarter of this year and by 5.1% in the past 12 months, according to the latest Night-Time Economy Market Monitor, produced by NIQ and powered by CGA intelligence alongside the Night-Time Industries Association (NTIA).
This means the sector has shrunk by more than a quarter (28.9%) in the six years since the Covid pandemic in March 2020 – equivalent to almost three net closures each week since then.
In particular late-night bars were hit hard closing at a rate of nearly six a month in the past year - the worst performance of any segment in the monitor.
Tough trading conditions
However, there was some positive trends in the bar sector such as growth in themed bars and greater resilience among independently-run venues.
NIQ director of hospitality operators and food EMEA Karl Chessell warned there are set to be more shuttered sites over the coming months.
He said: “While all parts of hospitality face tough trading conditions, the night-time economy has born the brunt of closures lately.
“Some concepts continue to thrive but thousands of bars and clubs have been steadily weakened by soaring costs and falling sales and it’s becoming increasingly hard to keep the doors open late at night.
“More closures over the rest of 2026 are sadly inevitable without targeted and sustained support.”
Changing demand
The closure rate of late-night venues, which is outpacing other hospitality venues, suggests structural challenges are the reason, according to NTIA CEO Mike Kill.
He said: “Economic pressures like soaring energy and labour costs and taxes are making it difficult to operate viable late-night businesses, while inconsistent approaches to licensing transport and policing are undermining the infrastructure that a thriving night-time economy needs
“Demand is changing rather than disappearing but there’s a real risk that we lose vital parts of our cultural and social fabric before new models have the chance to fully emerge.”
