The proprietor of nightclubs together with Pryzm and Atik plans to open at the very least 10 extra bars this yr,after attendance on the group’s 48 UK shops recovered to pre-pandemic ranges.
Membership proprietor Rekom additionally pointed to proof that Brits are spending extra on drinks in nightclubs and bars than they did in March 2020 – and turning up earlier on an evening out – with younger folks making an attempt to atone for greater than two years of pandemic restrictions.
“I’m cautiously optimistic,” stated Peter Marks, chief government of Rekom. He’ll open the UK’s second Heidi’s Bier Bar in Birmingham subsequent month to be adopted by its first Proud Mary bar in Swansea, each tried-and-tested ideas of the group’s Scandinavian homeowners.
“We haven’t skilled the buyer worth squeeze but however most of our company are beneath 25 and they don’t seem to be the folks paying the electrical invoice, filling the automotive or paying the mortgage. Now we have discovered our enterprise to be pretty recession proof as it’s low ticket and excessive quantity enterprise.”
Copenhagen-based Rekom expanded into the UK in 2020, shopping for 42 of the previous Deltic Group’s UK golf equipment and bars out of administration in January 2021, leaving 10 destined for closure. The group has now constructed again to 48 UK shops, taking again a few of its former websites and including new ones.
Marks stated a lot of Rekom’s shoppers had been turning up an hour sooner than typical, having not beforehand had an opportunity to expertise a nightclub as they got here of age throughout the pandemic.
Its analysis discovered folks had been spending nearly the identical as they did pre-pandemic on an evening out – £68.03 in comparison with £68.68 – and going out simply as typically.
They’re spending £19.56 every on ingesting in golf equipment and bars, up from £19.25 in March 2019, and barely extra on drinks earlier than they head out, £11.42 in comparison with £11.31. The quantity spent on meals, nonetheless, has dropped by about 3% to £15.70.
Simply over 60% of 18 to 24-year-olds stated they had been extra smitten by going out to golf equipment and festivals due to lacking out throughout the pandemic and nearly half of 25- to 34-year-olds stated the identical.
Rekom’s optimistic outlook comes as new proof suggests the overall variety of licensed venues within the UK has shrunk by 8% since March 2020 with 9,200 fewer websites. Unbiased operators took the brunt of the hit, with 8.7% closing, based on the most recent analysis by consultancy CGA and advisory agency AlixPartners, whereas 4.8% of chains or managed pubs closed.
Karl Chessell, CGA’s director for hospitality operators and meals for Europe, the Center East and Africa, stated shopper demand and investor confidence remained robust with a “stream of recent entrants” offsetting closures in latest months.
“There’s loads of turmoil occurring,” he stated. “Heavy inflationary pressures and staffing and provide points are making situations extraordinarily tough, and we will anticipate to see a gentle move of each closures and new openings because the yr goes on.”