Norfolk's largest nightclub, Mercy in Norwich, is closing down and being turned into four new venues.
Attendance figures at the Prince of Wales Road venue have been falling, something the owners put down to the smoking ban and late licensing laws.
Manager Toby Middelton said: "It's changed people's attitudes to the way they go out and enjoy themselves and the way they socialise."
The owners hope to reopen the club by the end of the summer.
Mr Middleton believed that people no longer enjoyed staying in one venue for an entire evening.
"They want more entertainment, that's why bar-hopping is so popular because you get different DJs, different musical genres and different people in the bars.
"For it to be as financially beneficial as we want it to be for another 10 years we've got to come up with some good ideas."
The building will house four new venues including a club for over-25s as well as a wine bar.
The refurbishment will cost owners Peri's Leisure more than £1m.