The boss of one of the UK’s leading pub and restaurant chains has said the late-night hospitality market is shrinking as younger generations opt for nights in over nights out, leaving traditional club venues struggling to survive.
Phil Urban, chief executive of Mitchells & Butlers, which owns major brands such as Toby Carvery, All Bar One, Harvester and Miller & Carter, said the group is steering clear of further investments in the nightclub sector, citing a fundamental shift in how people socialise.
Speaking to the PA news agency, Mr Urban said: “The toughest part of the market right now is late night. We’re certainly not exposed like pure late-night operators are, so we’re quite thankful for that.”
The remarks come amid increasing concern over the decline of the UK’s nightlife, with many iconic nightclubs closing their doors permanently in recent years. Urban suggested the change in habits is being driven by the influence of social media and the convenience of takeaway and home delivery services.
“Younger people are not following in the footsteps of previous generations who would go out late and stay out into the early hours,” Urban said. “Social media means they can keep up with friends without physically going out, and it’s increasingly common for people to meet up at someone’s house, have some drinks, perhaps a takeaway, and only go out later – or sometimes not at all.”
Mitchells & Butlers, which operates more than 1,700 venues across the UK, has seen stronger performance in its more family-friendly and casual dining establishments. The group’s decision to move away from late-night operations appears to be paying off as consumer behaviour shifts.
“Events like Mother’s Day, Easter, and the bank holidays continue to be major drivers of footfall for us,” Urban added. “Family-focused occasions are proving to be much more resilient.”
Rival pub company Marston’s also reported a similar trend last week, stating that family events were helping boost customer numbers. The company has recently launched a sports bar concept to appeal to a wider demographic and take advantage of growing interest in live televised sport.
Despite broader industry challenges, Urban stressed that most of Mitchells & Butlers’ brands were “doing well”, but acknowledged that O’Neill’s, its Irish-themed pub and bar chain, was “probably having the toughest time” due to its heavier reliance on the night-time trade.
“Late-night venues are simply facing a smaller market,” he said. “We wouldn’t go back into that sort of club market – it’s not for us, because I do think it’s going to take a long while to reverse – if it does.”
Industry analysts have echoed Urban’s comments, pointing to a cultural shift among Gen Z and Millennials, who are often more health-conscious, financially cautious, and digital-first in how they connect with peers.
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There is also growing awareness of safety concerns, particularly for women, which has contributed to a drop in traditional club attendance. The rising cost of living and high price of drinks in clubs compared to drinking at home have further exacerbated the decline.
As one of the UK’s most influential voices in hospitality, Urban’s comments underscore a broader transformation in how people experience nightlife, and raise questions about the future viability of clubs as younger generations continue to redefine the social scene.
While some operators are attempting to adapt through hybrid models or earlier opening hours with food-led experiences, the golden age of British nightclubs may be firmly in the past.
“We’re focusing on what works,” Urban concluded, “and right now that means good food, quality drinks, and spaces where people feel comfortable – whether they’re out with friends or with their families.”
