Nightclub market shrinking as younger people stay at home, says pub boss

The boss of one of the UK’s biggest pub and bar operators has warned over a shrinking late-night market as social media and a home delivery boom has shifted younger people’s attitudes to going out.

Phil Urban, the chief executive of Mitchells & Butlers, said the group would not look to grow in that market because of the challenges it faces.

“The toughest part of the market right now is late night,” Mr Urban told the PA news agency.

“We’re certainly not exposed like pure, late-night operators are, so we’re quite thankful for that.”

Mitchells owns restaurants, pubs and bar chains including Toby Carvery, Harvester, All Bar One, Nicholson’s, and Miller & Carter.

While hospitality companies will be hoping for a boost in spending over the bank holiday weekend, family-focused events like Mother’s Day and Easter have been the driving force behind a jump in visitors for many chains.

Last week, Marston’s, which runs about 1,300 pubs in the UK, said such occasions were bringing in more customers, while it has recently invested in a new sports pub concept to capitalise on the growing market.

Mr Urban said younger people were straying from previous generations who would be more inclined to “go out late night and stay out”.

“I think social media means that you don’t have to do that to stay in touch with your friends,” he told PA.

The booming takeaway and home delivery market was also having an influence, he suggested, adding: “People are often meeting beforehand to have something to eat, having a few drinks at home, before going out.

“So, those pure late-night, club operators, have certainly got a smaller market.

“We wouldn’t go back into that sort of club market, it’s not for us, because I do think it’s going to take a long while to reverse – if it does.”

He said all the company’s brands were “doing well”, but that its Irish pub and bar chain O’Neill’s was “probably having the toughest time” due to its exposure to the night-time industry.