Revealed: How Gen Z is transforming Sydney's nightlife scene

A new report shows that young Aussies are lonely, disconnected and going out less – and it’s having a huge impact on Sydney’s nightlife. But there’s one hotspot bucking the trend.

Young people in Australia are lonely and disconnected, and going out less than their older counterparts did when they were young.

Research by Youth Insight shows 63 per cent of Gen Z report feeling lonely sometimes or often, and 37 per cent of them feel disconnected even when surrounded by people.

While their older siblings and parents might have addressed their loneliness by going out clubbing and hitting the dance floor, almost half of Gen Z said they distracted themselves with TV shows, movies or books.

Their propensity for staying in alone rather than going out with friends is causing a headache for the night time economy.

While some night-time hot spots like Oxford Street West, Chippendale, Enmore Road and King Street have seen growth in visitors over the past six months, according to the Night Time Industries Association, people are coming less often and spending less.

Maddy Fyffe (l to r), Isabella Collinson, Savannah Fielding, Darian Crawford and Helena Churchley at the Pleasure Club in Newtown. Picture: Damian Shaw

Under-20s visits dropped across the city, and people in the 20-24 age group were more inclined to head to Chippendale or the YCK laneways for smaller, boutique bars rather than large nightclubs.

Chady Khouzame has worked in the hospitality industry for years and previously ran The Carter. He closed that venue and opened Zaffi, a late-night supper club instead.

“After covid, I think a lot of people turned to house parties without the rules and regulations, plus it's a lot cheaper and you don’t have to deal with the expense of paying for entry and so on,” he said.

“Young ones are a lot more health conscious, too, I think.”

Frank Tucker agrees. He ran The Rocks’ iconic nightclub The Argyle until he closed it earlier this year and turned it into a dining precinct with a number of small bars.

“When I was a kid, I couldn’t wait to go to big nightclubs, I didn’t mind standing in a queue – in fact standing in a queue for two hours was fun,” he said.

“I have a 21-year-old daughter and I know her and her friends like hanging out in smaller places and that is why you are seeing the proliferation of smaller bars.”

DJ Robbie Roomers talks about the decline in young people going dancing and the decline in the nightlife in Sydney. Picture: Thomas Lisson

Tucker expects the trend will continue for another five to seven years before people begin looking for the big nightclub experience again.

He said he also expected to see a lot more daytime events to emerge.

“One of the things you will see next is day parties or day events, a late lunch that really has a nightclub feel, where people will be home by 7pm,” he said.

“People will come back from the European summer, where they have these parties, and the industry will want to meet that demand.”

Sydney-based DJ Robbie Rommers, 42, has worked in the industry for more than two decades, from the heights of the noughties party scene in Kings Cross to the lows of lockout laws and Covid.

People dancing to the band Selene and the Strange at Pleasure Club in Newtown. Picture: Damian Shaw

He said the city’s nightlife had made a “comeback” – but not in the way older generations would expect.

“It’s a different approach now, instead of excess people are prioritising things like wellness, which is cool,” Mr Rommers said.

“Traditional venues have struggled to stay alive, but venues that have adapted to the cultural shift have risen to the top.

“I still see packed dance floors, it’s just a different dance floor.”

Mr Rommers said events like morning raves and coffee pop-ups with live music were part of the shift away from traditional clubbing endorsed by Gen Z, who he described as “much more polite” on nights out.

But he also found young people were more reserved, mostly due to factors out of their control.

“There was an adjustment period off the back of covid where these young guys and girls had to stay home during their formative years – now they are getting face-time with people and they may not know how to interact,” he said.

Lily-Rose Raposo (l to r), Ella Vitols, Sam van Ratingen, and Dan Tweedale at Pleasure Club in Newtown. Picture: Damian Shaw

The Saturday Telegraph spent a night out on King St in Newtown asking Gen Z about whether the nightlife culture has changed.

Most young people said cost was killing clubbing, with Gen Z spending between $100 and 250 on an average night out between drinks and Ubers home once public transport options dwindle.

The hangover left from lockout laws, red tape, pressures to perform for social media, and the rise of health and wellness culture were also blamed for the decline.

Sam van Ratingen, 24, was at Pleasure Club in Newtown last Saturday night supporting her friend’s band.

But the outing was an exception for the Inner West local, who said the pressure to work hard and save money had dampened the desire to go out every weekend.

“I feel like at our age, starting full-time work and figuring out who you are, there is so much pressure to do the right thing, to socialise but to work hard,” Ms van Ratingen said.

Former club promoter Lily-Rose Raposo, 21, and her friend Casper Yule, 19, blamed the empty dance floors on the “transactional” hook-up culture between Gen Z men and women.

“Back in (my dad’s) day, people just went out to have fun and to enjoy themselves,” Ms Raposo said.

“(Men) weren’t going out there trying to pick a woman to bring home … they were just going out with the boys to have fun, and nowadays it’s almost very transactional.

“It’s almost like clubbing isn’t a social thing any more … I feel like clubs before were just so much more about people meeting and having fun, and nowadays it’s all based on how you look through social media or through the phone, or what people are seeing when you take a video and post it. People really aren’t (living) in the moment any more.”

Pleasure Club staff Dominic Pacitto and Sienna Lyndon-James. Picture: Damian Shaw

Mr Yule said nightlife culture was “more about being seen out than it is about being out”.

But at the end of the day, cost was the biggest issue.

“I think it’s got to do with the price of going out and the infrastructure around bars is not great, I mean waiting for 30 minutes to get a drink … you spend like $12 on a pint, and I just don’t feel like getting a second one,” he said.

Bucking the trend is Newtown nightclub Pleasure Club. Run by Odd Culture Group, the venue was the first in Newtown to be granted a 4am licence in more than 100 years, and now Liquor & Gaming NSW has granted the club an extension to increase their capacity from 120 to 220 people.

Chief Operating Officer Rebecca Lines said the club had constantly been hitting capacity on Friday and Saturday nights, turning guests away at the door, so increasing capacity had been something they had been working on since opening.

“We wanted to prove that a late-night venue can operate in a way that actively promotes a safe, inclusive environment, free from anti-social behaviour,” Ms Lines said.

As to what will get more young people on the dance floor, Lines believes it’s about creating authentic experiences for young people.

“Venues need to create spaces where people feel safe, seen, and free to be themselves.

“That means inclusive door policies, diverse music programming, and environments that make you want to stay all night.

“If Sydney keeps nurturing venues that focus on connection and culture as much as commerce, the dance floors will take care of themselves.”

Originally published as Revealed: How Gen Z is transforming Sydney's nightlife scene