By Stephen Patterson, Chief Executive at NE1 Ltd
Newcastle is internationally renowned for its vibrant nightlife and is synonymous with a great night out.
The city boasts an eclectic mix of locally owned and much-loved independent operators alongside national and international brands that together create a dynamic and ever-changing late-night scene. There’s a healthy competition in the sector that elevates standards and quality, and encourages innovation.
Newcastle punches above its weight in the hospitality and leisure stakes and is well-represented in both the number of restaurants and independent venues per capita. The city has more independent restaurants per square mile than any other city outside London.
Recently, there have been several exciting announcements of new venue openings that will expand the city’s offer. The famous darts and cocktail bar Flight Club is scheduled to open in Eldon Square, together with the £16 million Freight Island development, which will transform the upper floors of the former, and now vacant, Debenhams store into a large food, drinks, and entertainment complex. As well as housing its own restaurant, Freight Island will include a variety of street food vendors and its signature attraction, the Music Box, which will provide a new venue for live music and a range of national and international touring acts.
Meanwhile, the North East’s own STACK is set to launch its latest venture this spring in the Grade II listed Worswick Chambers on Pilgrim Street. This will see STACK’s hallmark shipping containers and outdoor performance areas combine with the building’s historic architecture to create three floors of food, drink, and live music and entertainment space.
On the face of it, this is all great news for the city.
It would be so easy to assume that all is well with the night time economy. But beneath the glitz and glamour and news of new openings, there are real difficulties, and the hospitality industry faces significant challenges. Nationally, 50 pubs are closing each month, a clear indicator of the pressure on the sector. Increases in the Minimum Wage and National Insurance contributions scheduled for this April, combined with the reduction in business rates relief, will disproportionately impact hospitality and retail businesses, making margins even tighter. Rising energy and supply costs have already stretched operators to their limits. All these factors make it more and more difficult to operate successful leisure businesses.
The sense of frustration is palpable within the industry.
Despite its substantial contribution to a city’s cultural and leisure offer combined with the experience, profile, and employment it creates, the hospitality industry feels increasingly devoid of support and isolated.
In principle, NE1 is always supportive of investment and innovation. New venues add to the city’s offer and experience attracting new visitors and employing local people. If the offer is strong enough, they can also provide an uplift for surrounding businesses. A reputable brand will also help attract other operators keen to join the ranks. Having said that, when is too much, too much?
The question of sustainability looms large. How much new business can Newcastle’s nightlife sustain? Developments like those taking place on Pilgrim Street, in the Helix, and Stephenson Quarter promise an influx of approximately 20,000 additional workers into the heart of the city, but the significant impact of these additional workers will not be felt until 2027 at the earliest.
Despite these challenges, Newcastle is a far richer place for our vibrant hospitality scene; it differentiates the city and is a vital part of its appeal, attracting students, businesses, visitors, and residents alike.
Competition is essential for any major city. It prevents stagnation and decline, and ensures a constant cycle of renewal, rebirth and evolution. However, as the first law of economics, supply and demand, teaches us, to allow supply to grow unchecked can lead to an oversaturated market and all the difficulties that presents.
We are rightly proud of our vibrant hospitality and leisure scene, but to ensure its future prosperity, we need a strategic vision for the sector in the city based on solid economic sustainability. Without this, we risk losing a great deal, which once lost, will be difficult to get back.
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