Pryzm nightclub boss blames lack of students for closures

The CEO of Pryzm, the UK's largest nightclub chain, attributes the closure of multiple clubs and the loss of 500 jobs to the decline in student patronage, exacerbated by pre-drinking habits and avoidance of mid-week outings.

Rekom, the parent company, recently shut down 17 venues including Pryzm clubs in several cities and Atik nightclubs in four locations.

The Night Time Industries Association reports that around 400 clubs closed from March 2020 to December 2023, averaging two per week.

Peter Marks, Rekom's chief, cites the cost of living crisis as a key issue, with students venturing out less frequently and spending less when they do.

However, changing social habits among the youth, a move towards drinking less alcohol, and diverse entertainment options also serve as contributing factors.

A significant percentage of students are also working more hours due to financial pressures, further reducing their social outings.

Rekom, which previously profited from large city-center venues catering to students, faces challenges from decreased patronage, higher wages due to the National Living Wage, and overall increased operating costs. Consequently, once profitable businesses are now operating at substantial losses.

Retail experts suggest that young people now have more venues to choose from—ranging from bars with interactive games to various food and pop-up events.

The pandemic and the rise of non-drinkers among the youth also play roles in the nightclub industry's downturn. Tesco reports a surge in low and non-alcoholic beverage sales, reflecting this shift.

Marks has called on the government to cut VAT rates to 10% for the hospitality industry to alleviate financial pressures during these challenging times.