Early, are we to assume this folk club is in the U.K.?   I can't really tell by your notes.

Here is the U.S. we have a similar issue. The audience is getting older and not getting out as much as in previous decades. The costs are running higher for clubs to keep their doors open. What is happening here in the U.S. is "house concerts" are becoming more popular. Artists appear in living rooms in intimate concerts for groups of about 20 people.   Artists can book enough of these gigs to make a tour possible. For the "venue", there is no need for amplification and the other costs are kept at a minimum. For the audience, the cost is usually lower. Everyone wins.

Of course there is no "real ale" at these events and you lose the "pub" feel, but the music is the draw.