It’s time we have an honest conversation about the future of nightlife

I have been in the nightlife industry for eight years. Together with my business partners, we built an event promotion and production brand that grew to become a staple in Hispanic circles in Toronto. Like in any other business, there are good and poor-performing products, but in our line of work the measure of failure is somewhat unique. This is important to understand how businesses in this industry can operate successfully in the future.

A poorly-performing event in our books was one where we had less attendance than 75% of the capacity of the space we utilized. It was not a failure because we didn’t profit, it was a failure because of the customer experience we provided. While we could still be profitable at 75% capacity, the experience was so diminished that it would hurt our customer loyalty in the long run.

The most successful event we could produce was one that would slightly push the limits of comfort without becoming too overwhelming. In other words, one that was packed but not packed to the point where you couldn’t enjoy yourself. Striking that fine balance was our aim because it created the perfect atmosphere so that the overall customer experience was outstanding.

So, while I appreciate the innovative ideas and creativity that I have seen from some of my colleagues in the industry during this time of crisis, I simply don’t think our business model is compatible with the current situation and the requirements that come with it.

Our value proposition is, precisely, that we create the circumstances in which people are comfortable, and in fact excited, to be crammed together immersed in the shared experience of partying. I can’t think of any other activity that promotes the same kind of experience and that relies so heavily on this format to be successful. Until this health crisis is over and we are safe (and feel comfortable) to be stuffed together in a closed space without having to worry that we will get sick, we cannot operate our business successfully. We don’t know when that day will come, so our only choice is to accept that reality and face the consequences of it head-on.

Inevitably, that will mean that many businesses will not survive the shutdown; we have already seen how some of the venues we work with have closed down permanently.

However, what we can and should discuss right now are the actions that we can take during the crisis (as an industry) to lobby the government and to prepare for the day when we finally remerge. These measures should help our industry become more resilient, profitable and integrated.

Here are some initiatives that I think could help businesses in nightlife achieve these goals:

• Ease liquor licensing regulations so that we can get a higher ROI. In Toronto, for example, this could mean extending last call to 4 am and outdoor patio hours to 2 am (on the weekends).
• Promote local businesses by encouraging residents to go out and spend in their local economy through the following:

1. Make public transportation free during the weekends (including GO-Transit)
2. Give a tax rebate for every dollar spent in local small businesses. In Ecuador (where I am from), people can submit their expenses up to a certain amount to get a tax deduction. It is a widely popular programme that encourages transparency in taxation while stimulating spending. We could explore a similar approach but focused on stimulating the local economy.

• Tax landlords who deliberately keep their storefronts vacant to drive-up prices through speculation or to hold out for developers to buy them out.
• Extend the federally-backed loan programs, after the health crisis is over, not only to existing businesses but to new entrepreneurs that want to take the risk to invest in this industry under the difficult circumstances that we’re likely to face.
• Integrate the entertainment industry (nightclubs, promoters, bars, restaurants, artists, event producers) through a business organization so we can have a louder voice and more influence in the decisions made by our government, especially at a local level.

These are just some thoughts that I have based on my own experience, but I welcome debate and more ideas!

Having grown up in Latin America gives me an interesting perspective on nightlife; back home, this industry has had to deal with a lot more volatility but it has built resiliency as a result. One year you could have a thriving nightlife industry and the next year a recession hits or crime runs rampant making it completely depressing and dangerous to go out. It is very sad to see a city with no life and empty streets.

Having seen what that looks like makes me cherish our vibrant nightlife industry where it is safe and fun to go out and experience the city. I believe that the entertainment industry is the soul of our cities and I hope that this crisis helps us truly appreciate it. Perhaps this could be an opportunity not only to save the industry from collapse but to make it even better than it was before.