So You Want To Build
And Open A Nightclub...!
By Lloyd M. Gordon, President
GEC Consultants, Inc.
Skokie, IL 60076
Some thoughts by those
who have done it successfully.
The other day, a former night club operator. Louis Wise and
the editor and publisher of Food Industry News, Cliff Carlson were
having breakfast with me at one of Cliff's favorite spots on Chicago's
Northside. After we had given the waitress our orders, Lou spotted
two men seated at a table near by. He recognized them as owners of
one of the newest night spots in Town. He waved a casual hello and
they responded in kind.
Carlson: It looks like they are just finishing up their day
now. It must be a different type of life to be in the Night Club business.
Wise: You bet it is. You have to put in a full day and then
go right into working a long night. When I open a night club it's not
unusual for me to work 28 hours a day and then start into the next
day.
Gordon: Correct, if you think operating a restaurant has its
problems, running a night club can blow your mind. However, a person's
financial success and mental stability in the night club business should
be orchestrated right from the beginning, on the day you decide to
open one.
Wise: Right! If you've had experiences building a restaurant
or remodeling an existing facility, multiply the aggravation threefold
and you've got some idea of what to expect trying to develop a night
club.
Gordon: I keep repeating that if things go well it can take
6 to 9 months to plan and develop a new night club. If things go worse
than expected it can take over a year. Meanwhile, costs continue on
and on every month and by the time the Club is ready to open, all too
often, funds that were scheduled to meet the needs of construction
and development and grand opening are depleted before there is a grand
opening.
Wise: I think one of the first hurdles to overcome is to come
up with a Club concept that will attract the attention of the Club
crowd and not discourage patronage of the occasional Club goers. Second,
is getting the Club constructed on time and within budget. Third, is
to find employees that can follow directions and "do a club scene".
Carlson: I agree. It seems that there are always problems that
the Club promoter is not equipped to handle. But is this any different
from building a restaurant today?
Gordon: Building a Club or a restaurant from the ground up,
or extensively remodeling one that already exists can be an exhausting
undertaking. Any type of construction is costly, but if you are hesitant
and unsure of what you really are doing, it can be extremely expensive
and costly both in time and money. You need good pre-planning and professional
expertise to reduce chance of error and to monitor and coordinate everything
that goes on.
Carlson: Don't you have to make some kind of valid projections
to give the Club owner an idea of what it's going to cost him?
Wise: Sure, but there are a host of variables to consider.
You really can't start making projections until you have your concept
completely detailed. You've got to consider your entertainment, sound
system, dance floor, number and locations of bar facilities, general
equipment layout, appearance of the interior and what the building
will look like from the outside.
Carlson: Could I do this all on my own?
Gordon: Of course, if you've got the knowledge, time and fortitude.
It takes guts to build a Night Club.
Wise: Let me give you some examples of what I had to do when
we built Alex Palmer Dinner and Dance Club in Harvey, Illinois in the
Spring of 1989. We took a former night spot and extensively remodeled
it inside and out, enlarged it and added another dance floor. We determined
that an on-going entertainment program was to be the policy with a
fresh concept of a comedy club on the week-ends.
Gordon: But the freshness of this planning was the extension
of food into multiple facilities so that food became as desirable as
bar beverages in the scheme of things.
Wise: Right! The result screamed of sophistication with its
open kitchen, prompt table service, indirect lighting and avant-garde
colors and decorations. We put in an ambitious menu with over 20 entrees,
and daily specials. Also, we introduced "tapas" as appetizers and desserts.
Carlson: Were the Club patrons happy with the results?
Wise: Yes, and the smoothness of our opening was due in large
part to our decision to spend one month training the employees in "Alex
Palmer" service before we opened. And about that opening we can say
that it was totally professional. The opening was faultless and the
systems and facilities are still functioning as planned.
Carlson: So, care in planning, knowing what to do and the proper
timing in doing it pays off. If you had to do it all over again would
there be anything you'd change?
Wise: Certainly. But that's creative growth. The more Clubs
you do the more you learn what not to do.
Carlson: Then neither the bar or the food is "most important".
Wise: That's really it in a nut shell. A Night Club must feature
both bar and food items effectively.
Carlson: Can an investor use trial and error to determine what
will work and what won't?
Gordon: No, not and remain solvent.
Wise: We have to foresee the changing needs and fantasies of
the Club goers and translate these impressions into a firm reality
of music, lights, sound and refreshments.
Carlson: It appears that all persons desiring to enter the
Night Club business, whether they have previous restaurant or bar experience,
should schedule a meeting with professionals in this field such as
you two in order to get their "act" together so the show can "go on"!
Gordon and Wise: That would be the "opening curtain
of a good play".
Mr. Lloyd M. Gordon, President of GEC Consultants, Inc. has an MBA
from the University of Chicago. He has concepted more than 390 restaurants
and has been consulting for over 44 years. He helps people enter the
restaurant industry, points the way to profitability, and helps keep
them successful. To discuss "a feasibility study" he can be reached
at 847-674-6310.
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