Bars 'struggling' in the recession

Young people say they are cutting back on big nights out

Some of the UK’s biggest bar and club chains are struggling as record youth unemployment and the recession means more regular customers are staying at home.

Bar owners say under-25s are not going out as much, especially mid week, and spending far less when they do.

Many are being forced to slash both admission fees and drink prices and revamp their venues to appeal to older, richer customers.

"People are much more selective this year," said Paul Smith from Noctis, which represents bars and clubs.

"They are saving their cash for a big blow-out on a Saturday night, but are just not going out as much in the week."

'Going downhill'

The downturn is hitting some of the best known bar chains.

Luminar, the firm that owns venues like Liquid and Oceana, says the number of people visiting its clubs had tumbled by 17% in the seven weeks to October 15.

Other big name brands, including the Chicago Rock Cafe and Walkabout, have also suffered with some branches forced to shut down or cut their opening hours.

A Thursday night in Wrexham, north Wales, is normally a busy place to go out in the weeks leading up to Christmas, but people told us it was quiet compared with December 2008.

"The atmosphere has gone downhill," said 23-year-old Maggie. "Everyone should be out now but some of these bars are not even bothering to open up."

The people who run the town’s bars and clubs say business is much tougher this year.

Scott is saving his money by drinking at home

"It’s a massive decline, spending just isn’t there," said Jon, the general manager of Fat Cat in the town centre.

"We are relying on weekends now. Mondays and Tuesdays have declined drastically, Wednesdays and Thursdays are quieter.

"People also tend to come later or leave earlier. Because of the recession people simply have very little income and until they start to see the light at the end of the tunnel it’s hard to see things picking up."

Supermarket deals

Bars and clubs also blame cheap supermarket drinks deals for encouraging people to stay at home.

"We're much more likely to stay in with a few beers and invite our friends round. For about £15 you can have as much as you like to drink," said 24-year-old Scott.

"Wrexham can be quite an expensive night out...and it’s hard to afford that at the moment. I am going out once a month now at best. A year or so ago I would try to get out every couple of weeks easily."

More bars and clubs are trying to fight back with cut-price drink deals, especially on week nights. We spotted 3-for-1 and all-inclusive offers at bars all down Wrexham’s main street.

It’s one obvious way to try and attract more cash-strapped punters.

But with some bars and clubs already being criticised for promoting binge drinking, there is a danger that this kind of strategy could backfire in the long term.