Berlin clubs struggle as drink sales dry up and costs rise
Berlin's clubs are still drawing crowds, but shorter nights, fewer alcohol sales and rising costs have changed their business model. Door fees, rather than bar
Berlin's clubs are still drawing crowds, but shorter nights, fewer alcohol sales and rising costs have changed their business model. Door fees, rather than bar takings, are increasingly their real financial lifeline. Berlin's world-famous club scene has remained in high demand, but venues are increasingly struggling to turn packed dancefloors into sustainable businesses. A major survey released on Friday found that club revenue has shifted dramatically away from drinks and toward admission fees. What's happened to Berlin's clubs? The shift reflects changing nightlife habits since 2017, when around 60% of revenue came from food and drink sales and just 21% from entry fees. Today, ticket sales account for 59% of revenue, while food and drink generate just 20%. "People are planning their club nights more consciously, staying for shorter periods, and drinking less,” according to the report, the first comprehensive study of the sector since 2019.
Some 73% of respondents said alcohol consumption was falling, while 60% reported rising demand for non-alcoholic drinks and 57% said guests were staying for shorter periods. At the same time, costs are rising. Staff costs were cited as a major burden by 64% of respondents, operating costs by 62%, customers' declining purchasing power by 60%, and rents and leases by 54%. Some 85% of the clubs polled said financial pressure was already changing their event programs. Is running a Berlin club lucrative? Demand remains strong, with 83% of clubs and event organizers reporting occupancy rates of at least 50% and around a third exceeding 75%. But fewer venues are making enough money to cover their costs. Club closures in Berlin: The end of an era? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video In 2017, 79% were at least breaking even.
By 2025, that figure had dropped to 61%. Some 39% ended the year in the red, compared with 21% in 2017. The number of smaller operators has also risen sharply. Some 45% now generate less than €100,000 ($115,595) in annual revenue, compared with 16% in 2017. Long-term insecurity remains another major problem. Only 8% of operators own their venues, while 31% have rental or lease agreements lasting less than five years. How are clubs adapting? Some 23% of respondents said they were considering closing their business within the next 12 months. Since 2020, at least 24 club and cultural venues have closed, but around 25 new ones have opened. Many venues have already adapted to the pressure. Some 67% have increased drink prices, 47% have raised admission charges and 39% have expanded private rentals.
The BriefWire