Business

Mitchells & Butlers chief warns late-night market shrinking due to younger generation staying home

Tuesday, 27 May 2025 12:11AM UTC

Phil Urban, CEO of Mitchells & Butlers, highlights a sharp decline in the late-night market as younger people increasingly prefer socialising at home amid economic pressures, posing serious challenges for traditional nightclubs and nightlife venues.

In a stark warning for the nightlife industry, Phil Urban, the chief executive of Mitchells & Butlers, has highlighted a dramatic contraction within the late-night market. As one of the UK's preeminent pub and bar operators, Urban attributes this downturn to shifting social patterns, particularly among younger generations who increasingly prefer to socialise at home. The rise of social media and home delivery services has fundamentally altered how young people engage with their social circles, rendering traditional late-night outings less appealing.

Urban explained this new landscape in an interview, stating, "The toughest part of the market right now is late night." He noted that, while Mitchells & Butlers is better insulated than dedicated late-night venues, the overall shifts in consumer behaviour pose challenges. The company, which encompasses a variety of restaurant and bar chains like Toby Carvery and Harvester, is not looking to expand into the struggling nightclub sphere, suggesting that the trends observed are likely long-term. Many younger individuals now prefer to meet friends at home for drinks and takeaways before heading out, indicating a preference for more casual, controlled environments over the frenetic energy of nightclubs.

Data corroborates Urban’s claims. A recent report from CGA revealed a staggering 30% decline in the number of nightclubs since the onset of the COVID-19 pandemic, reflecting a broader sea change in consumer habits. The increasing preference for diverse types of entertainment has contributed to diminishing interest in traditional club scenes. Furthermore, findings from Grant Thornton underscore the economic factors at play; 68% of young respondents reported that financial pressures have curtailed their participation in night-time activities, with 53% admitting to spending significantly less on nights out compared to the previous year.

As younger demographics grapple with a cost-of-living crisis, the implications for nightlife are profound. GlobalData’s research has shown that 21% of Generation Z intend to socialise less frequently outside their homes in the near future. Financial constraints are a significant factor, with many students opting to save money by reducing nights out. Additionally, a report from The Spirits Business indicated that a sizeable proportion of 18 to 24-year-olds are pre-drinking more often and seeking cheaper alternatives for home consumption, further eroding the late-night market.

The Night Time Industries Association (NTIA) has also highlighted key barriers to nightlife participation, with 61% of young people citing factors such as financial stress, safety concerns, and inadequate transportation options as obstacles to enjoying late-night social events. As operational costs continue to rise, many venues are struggling to adapt, leading to a wave of closures and reduced viable options for consumers.

In summary, Urban's observations reflect a larger trend unfolding across the UK’s nightlife sector, where changing social behaviours, economic pressures, and evolving consumer preferences converge to reshape the late-night landscape. As Mitchells & Butlers strategically recalibrates its focus away from late-night operations, the future of the club scene remains uncertain, with many stakeholders left to ponder the long-term viability of traditional night-time entertainment in a rapidly changing world.

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Source: Noah Wire Services

More on this

https://www.irishnews.com/news/uk/nightclub-market-shrinking-as-younger-people-stay-at-home-says-pub-boss-TK44ZIUZZFIKZJY3NXNRPT47MI/ - Please view link - unable to able to access data
https://cgastrategy.com/britain-loses-30-of-nightclubs-since-covid-as-consumers-late-night-habits-evolve/ - A report by CGA highlights a 30% decline in UK nightclubs since the onset of COVID-19, attributing the downturn to evolving consumer habits and the rise of alternative entertainment options. The study indicates that the late-night market is diversifying, with consumers increasingly opting for different types of venues and activities, leading to a significant reduction in traditional nightclub attendance.
https://www.grantthornton.co.uk/insights/cost-of-clubbing-a-challenge-for-the-night-time-economy/ - Grant Thornton discusses the challenges facing the UK nightclub sector, including reduced consumer demand, rising operational costs, and changing socialising habits. The article notes that 68% of young people report that the current economic climate has reduced their participation in night-time activities, with 53% spending less on going out compared to the previous year.
https://www.globaldata.com/media/consumer/uk-night-club-closures-reveal-changing-gen-z-behavior-one-fifth-say-socializing-less-outside-home-says-globaldata/ - GlobalData's research reveals that 21% of Generation Z plan to socialise less frequently outside the home over the next three months. The study attributes this trend to financial constraints and changing drinking habits, with students cutting back on nights out due to the cost-of-living crisis and consuming less alcohol.
https://www.thespiritsbusiness.com/2022/10/late-night-socialising-down-as-costs-soar/ - An article in The Spirits Business reports a decline in late-night socialising among 18 to 24-year-olds, with 43.4% pre-drinking at home more and 38.2% buying cheaper drinks to have at home. The piece highlights how rising costs are influencing young people's socialising habits, leading to reduced spending on nights out.
https://www.nightlifeinternational.org/en/news/item/4648-ntia-uk-releases-key-2025-reports-on-the-night-time-economy-and-electronic-music-industry - The Night Time Industries Association (NTIA) released a study indicating that 61% of young people reported going out less frequently in the past year, with financial pressures, safety concerns, and inadequate late-night transport cited as key barriers to nightlife participation.
https://www.smeinsurance.com/knowledge-and-resource-hub/news-and-guides/uk-nightlife-economic-uncertainty.html - An article by SME Insurance discusses the impact of economic uncertainty on the UK nightlife industry, noting a significant decline in the number of nightclubs and live music venues. The piece attributes this decline to rising operational costs, changing consumer behaviour, and the cost-of-living crisis.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 9

Notes: The narrative is recent, published on 27 May 2025. The earliest known publication date of similar content is 26 September 2024, when Reuters reported on Mitchells & Butlers' annual results and sales growth. ([reuters.com](https://www.reuters.com/business/retail-consumer/uk-pub-group-mitchells-butlers-q4-like-for-like-sales-growth-slows-2024-09-26/?utm_source=openai)) The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. No similar content appeared more than 7 days earlier.

Quotes check

Score: 8

Notes: The direct quote from Phil Urban, "The toughest part of the market right now is late night," appears to be original, with no earlier matches found online. This suggests potentially original or exclusive content. No variations in wording were noted.

Source reliability

Score: 7

Notes: The narrative originates from The Irish News, a reputable organisation. However, the report is based on a press release, which may indicate a lack of independent verification. The presence of direct quotes from Phil Urban adds credibility.

Plausability check

Score: 8

Notes: The claims about the shrinking late-night market align with previous reports, such as the 2016 Guardian article discussing the decline of nightclubs and changing social activities among young people. ([theguardian.com](https://www.theguardian.com/theobserver/2016/aug/14/young-people-night-time-social-activities-museums-running-tim-lewis?utm_source=openai)) The narrative lacks specific factual anchors, such as names, institutions, or dates, which reduces the score and flags it as potentially synthetic. The language and tone are consistent with the region and topic. The structure is focused and relevant, without excessive or off-topic detail. The tone is formal and appropriate for a corporate statement.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative is recent and based on a press release, which may indicate a lack of independent verification. The direct quote from Phil Urban appears original, adding credibility. The claims about the shrinking late-night market are plausible and align with previous reports. However, the lack of specific factual anchors and reliance on a press release warrant further scrutiny.

nightlife
Mitchells & Butlers
young people
social trends
economy