NewsWire: 2/19/21
- Even before the pandemic hit, the future of nightclubs was already in question. It’s clear that in order to survive, clubs will have to innovate—both for a socially distanced world and a new youth generation. (The Economist)
- NH: Most of the entertainment venues that have shuttered during the pandemic, from concert halls to bars to movie theaters, are expected to get back to business once it’s safe again. Some have already reopened under new social distancing and cleaning guidelines. But there’s one conspicuous exception: nightclubs.
- Clubbing’s popularity was already waning prior to Covid-19. Millennials are drinking less than earlier generations. When they do drink, they're more likely to do it at home. And, with the rise of online dating, they have become less likely to venture out to clubs to meet people. (See “Where the Wild Things Aren’t” and “Sobriety is the New Black.”) In the decade prior to the pandemic, the number of nightclubs fell by 21% in Britain and by 10% in both the U.S. and Germany. In Berlin, there’s even a term for this phenomenon: Clubsterben, or “club death.”
- Covid-19 has only worsened their troubles. People can still enjoy a night out in a half-capacity movie theater or restaurant, but socially distanced clubbing defeats the whole purpose of clubbing--which is tightly packed madness. And high overhead means losses when the crowds are below capacity. Losses push some clubs to increase the prices of tickets and drinks, which turns off potential visitors even more.
- As the clubbing scene slowed in the U.S. and Europe, local owners (who run most of the industry) have done somewhat better in emerging markets. The new clubs that popped up in places like Marrakech, São Paulo, and Nairobi in recent years have been less likely than clubs in rich countries to shut down due to the pandemic. They’ve adapted to Covid-19 with new health measures like temperature checks and by extending their hours to try to get more money coming in. But they too are still struggling with fewer locals and (of course) very few affluent tourists.
- Even countries with stringent Covid-19 measures are having a hard time convincing partygoers to come back. Zouk, one of the most famous clubs in Singapore, used to see 3,000 revelers a night and now sees 150, even after converting some of its floor space to a restaurant, a spin studio, and a movie theater. Andrew Li, the CEO of Zouk Group, recently told the South China Morning Post: “We used to make more money in one night than we make in a month now.”
- Many nightclubs across the U.S. and Europe, meanwhile, are being forced to rebrand themselves as totally new spaces. The Cosmopolitan in Vegas turned its Marquee Nightclub into the “Pool Marquee at Night”: an outdoor, reservation-only, socially distanced poolside lounge. Berghain, the famous techno club in Berlin, became an art gallery. And its neighbor, the notorious sex club KitKatClub, has traded fetish gear for PPE: It’s now a Covid-19 testing center.
