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The night club industry in Helsinki

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The night club industry in Helsinki

The thesis analyses the night club market in Helsinki. A night club is a licensed service of alcoholic beverages that operates within the service industry under specific laws and regulations.

The market of licensed service establishments in Helsinki is fierce as 1 044 night clubs, bars, and restaurants compete for customers. The night club market in Helsinki is controlled by the night club “guru” Sedu Koskinen, who successfully operates 11 establishments. With 15 years of experience and a belief that the night club reaches maturity after three years of business, Sedu Koskinen sets a challenge for any entrepreneur that wishes to enter the market.

In 2008, the promotion of “Happy Hours” and discounts on alcoholic beverages became prohibited outside the night club’s premises. The government has put forth a legislative proposal to increase the alcohol tax by 10 percent in the end of 2009 in order to reduce the misuse of alcohol. Hereby, the retail prices on alcoholic beverages would increase by 4,5 percent. Furthermore, increased taxes will certainly encourage the individual import of alcohol from abroad. Night clubs’ sales depend on the consumer consumption of alcoholic beverages. Moreover, night clubs, bars, and restaurants are the alcohol consumption distribution channels that generate most tax income revenues on alcoholic beverages. Hereby, an increased level of taxes on alcoholic beverages may negatively influence the Finnish economy.

The report provides a study of the Helsinki night club industry and its future. Furthermore, it may serve as a reference point for an individual that is considering introducing a new establishment into the night club market in Helsinki. The researched topics include a description of the night clubs currently in the market, the competition strategies, estimated future economic development and trends in the market.

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