Nightclubs face the music after Covid
NIGHTSPOTS ARE PUSHED TO BRINK OF CLOSURE
IT’S been a tough year for the hospitality industry.
Pubs and restaurants have been pushed to the brink after a year of opening and closing.
But for nightclubs it’s been worse. On March 23 last year Prime Minister Boris Johnson ordered people to stay at home and close all nonessential businesses, including our clubs.
Tom Caulker, World Head Quarters’ managing and musical director, said 12 months on the pandemic has pushed the Newcastle institution to the brink of closure.
He said: “It’s been a nightmare year for all nightclubs, nothing coming in, everything still going out.
“Hopefully with the vaccine rollout now taking hold, we are nearly at the point where we can see light at the end of the tunnel.”
Mr Caulker remains hopeful that the continuing vaccine roll out means that the Carliol Square venue has a chance of survival.
He added: “We are still relying on further support from the Arts Council Recovery Fund to get us through these last few months, but with a decision on that due at the end of March and night clubs reopening now, hopefully, on the horizon, we are cautiously optimistic we may survive.
“We just want it all to be over and our fingers are crossed that it very nearly is.”
But it’s not just club-owners who have struggled, promoters who rely on venues have also been unable to work.
Mike Hesketh, owner of Mish Mash events, described the last 12 months as “super difficult”.
He said: “This time last year we were sat in an office in Times Square waiting to see what the news was from central Government.
“To be brutally honest, at the time it was a mix of emotions as to what was the right thing to do.
“We had to down tools and find out what support funding we could claim. A year on we had no idea we would have been in this position.
“Because we didn’t have premises like a night club or a bar it wasn’t as easy to get funding because we were seen as the supply chain to a lot of premises.
“Furlough has maintained our staff for the entire year. It has been super difficult, we have office space and insurance to pay for.
“We hope that bounce-back loans can help us in this postCovid event era. The future for us is tentative if the road map [out of lockdown] has potholes.
“Any changes in the road map can seriously damage the potential of a lot of businesses in our industry.”
Despite this Mr Hesketh said he is looking forward to getting back to work, and is planning to run a “central park” event which will see Times Square turned into a beer garden from May to July.
He added: “I got into this business to see the fruits of my labour in front of me. The past year I have been posting memories [online] and it has been amazing to think we have had a million people through our events.
“It would be great to get back and get people away from Netflix and Spotify.”
Adrian Waddell, chief executive of NE1 Ltd, which supports city centre businesses, said that the last year had been more difficult for Newcastle and its business community “than at any other time in living memory”.
He also said the hospitality industry has “shouldered the burden of restrictions disproportionately,” with nightclubs a “forgotten industry”.
Mr Waddell said: “Nightclubs in particular were late to receive any help and will be the last to emerge from lockdown.
“The longer these businesses are forced to close increases the risk of business collapse and job losses. “Early in the pandemic we argued that nightclubs were the forgotten industry. These venues make a huge contribution to the city’s night-time economy as well as giving the city its unique vibrancy.”
He warned that Newcastle would be “poorer” if its clubs don’t survive lockdown. Mr Waddell continued: “We want and need them to survive lockdown and be in a strong position to reopen when it is safe to do so but without continued financial help, this is not going to be possible and Newcastle will be poorer for it. We need to ensure that we don’t lose these venues forever.
“At each stage of the pandemic we have been acutely aware of where the gaps still remain in Government support and have lobbied hard to resolve them.
“We welcomed the Government’s budget announcement that they wouldn’t pull the plug on business support to allow the country to get back on its feet.”
When he outlined his budget earlier this month chancellor Rishi Sunak revealed a range of measures new “restart grants” for the hospitality and leisure sector.
These businesses could get grants of up to £18,000 as they are expected to open later and face more restrictions when they do.
Hospitality businesses including restaurants and pubs will now be exempt from paying business rates until June, followed by a further sixmonth period where rates will be discounted to two-thirds of the normal charge, up to a maximum of £2m for closed businesses.
Mr Waddell added: “We continue to call for targeted support for businesses, like nightclubs that will be forced to remain closed or have major restrictions placed on their operations. Nightclubs are as eager to start serving their customers as other businesses but until they can welcome people back without restrictions they are going to need financial help.”
The future for us is tentative if road map out of lockdown has potholes
Mike Hesketh