Post: #1

Any thoughts on opening up a club/lounge in a happening beach party spot?

It seems to simultaneously achieve the goals of bringing the hot girls to you and creating a revenue stream that one could live on. I know it is a tough business, so location is important and of course the marketing effort that goes into making it a happening.

If we can get a few guys together as investors to share the start up costs, I would definitely consider it.

Post: #2

good location, good prices, and good music. u will be successful with those three characteristics.

Post: #3

As someone who comes from a family in the business of pubs and clubs, I say it's all about location. Furthermore you need a good deal on the rent or freehold agreement. I was considering this as well in somewhere sunny. Just remember, beach spots tend to be seasonal, so you need to ensure you can turnover big bucks in peak seasons to survive the lows. City bars tend to be more consistent throughout the year. Like Dash Global said, music & prices are also important, as they dictate your demographic.

You can set up a bar REAL cheap in certain countries...
It's depends on how far you wanna go...

What about a bar / hostel? Get the lease on a building and use the second/ third floor for a whooper hostel. Hostels with bars do really well and you get a constant stream of horny backpackers knocking on your door

Post: #4

Let me add that Location should be the best, location at lowest cost possible. I know of a club that spends a ton of $$$ on real estate, but I just cannot figure out how they stay open. I'm talking about Nikki Beach Miami. It only gets packed occassionally 3x per month maybe. I actually stopped going even though the place is in a magnificent beach location! Regardless, it's gonna cost money for a cool lounge to get off the ground right. I know because I already tried. After 1 million in startup funds, and a ton of marketing, it quickly died in 7 months, barely covering our losses.

If you have a business plan done, I'd love to see it.

Post: #5

(08-30-2010 12:42 PM)naughtynomad Wrote:  You can set up a bar REAL cheap in certain countries...
It's depends on how far you wanna go...

What about a bar / hostel? Get the lease on a building and use the second/ third floor for a whooper hostel. Hostels with bars do really well and you get a constant stream of horny backpackers knocking on your door

I have toyed with the idea of a hostel before as well. The disadvantage of this is that the bar will be more downscale. I was thinking of something in a cheap location that attracts the local movers and shakers. Basically the idea is to become a local celebrity and attract the 9s and 10s that come with having that status. But, the hostel sounds interesting as well. The bottom line is to get the women, the horny backpackers might be an easier route.

Mixx, I don't have a business plan. I am just starting to think about this. I have another revenue stream from my online business that should give me enought to live on. The idea for this is really to bring the women to you. I am not thinking anywhere near the Million dollar mark. I was wondering if we could find a cheap location and get started with under 100K, pulling together 5 or so investors. Actually Nikki Beach Club was one of the concepts that came to mind. But, where can we do it for cheap and still attract the high end clientele?

I know enough about online and social media marketing to create a buzz about the place. So, even if the location is not happening right now, we can make it happening.

Post: #6

Mixx,

"I know of a club that spends a ton of $$$ on real estate, but I just cannot figure out how they stay open. I'm talking about Nikki Beach Miami."

Nikki Beach the land and now the club is owned by Jack Penrod. So no rent costs there.

The club used to be run by two cats, south beach legends (I am sure you know who I am talking about). Then I think Jack made one of them partners.

Anyway, that is my understanding .

Back to the original post, "good location, good prices, and good music." is the tip of the iceberg. If you really want to get into this biz I suggest working in the industry first and knowing it inside and out.

Graveyards are filled with guys who said, "Lets open up a hip nightclub!!!"

Post: #7

-absolutely one of the worst times to open a nightclub/lounge/bar/restaurant is now. Possible and growing threat of a double dip recession which kills what industries first? Tourism/Retail...

Your costs will be:
-equipment costs
-staff
-working capital - lights, electricity, website, marketing, security, food/supplies..
-liquor license if you can get it...

I can't begin 2 tell you how many people I've met who had pure golden heart intent to open a restaurant/lounge only 2 watch it fail within 1 year due to poor capitalization, marketing, product, or not being able 2 get the liquor license...I'm definitely not a dream thief, but I would highly recommend that you take some time 2 study the market and observe what others are doing who are thriving during this time...You do not want to be in debt 200-300 grand becuz things didn't work out....

Post: #8

Understand you're not exempt from the statistics. There's a 90% chance of failure. The only logical reason to open this kind of business is as a front for another "business."

Post: #9

(08-30-2010 07:21 PM)gringoed Wrote:  Understand you're not exempt from the statistics. There's a 90% chance of failure. The only logical reason to open this kind of business is as a front for another "business."

Agreed. Most bars around here last 2-3 years and go under. Here October- mid November and mid April- June everything closes down. That must make things hard.

Post: #10

250k worth of agreement especially in the US. Thats about what I lost here in NJ, broke my piggy bank and I sold my lotus to try to open, never did.

In many other countries you can open sans license which will save a lot. Then all you need is alcohol (still expensive) and music (expensive) and lighting (expensive) there are cheaper ways you can do it.... I know a lot now..... but look at it as a loosing venture. I wouldnt expect to make a lot or any money off it unless I got lucky.

I would be open to it because now I know what I am in for and what mistakes NOT to make, and now the positives, labor in other countries is cheap, use local materials, buy used stereo equipment which will save a bundle(just have plently of spares), seems its expected you are fucking your boss in many 2nd 3rd world countries, its a power and status symbol which attracts women, and I have a 15k custom designed night club design that I never used.

Post: #11

I agree that it is absolutely not worth doing this in N America. The frequency with which multi million dollar clubs go under in my city amazes me. Opening up in a 2nd or 3rd world location is definitely the way to go.

If we keep the costs low and find an underserved location, we will have a much better chance of success. Haven't you ever been to one of those places and thought to yourself, "A kick ass lounge in this place would do really well."?

One the other hand, the hostel idea also interests me, and I think it might actually be easier to make that a success. Most of us have probably stayed in hostels during our travels and have an idea of what makes a good hostel. And using the resources of various internet forums, we can direct travelers to the hostel.

Post: #12

or everyone loves anything american, just opening an american style club will bring people in. That had been my thought, and I do like the idea of a hostel too.

Post: #13

-Not sure I agree with the recession time bar woes fellas. Even with a Recession alchohol sales are normally very steady and often times even up higher than normal due to more free time, drinking out of stress, bordem and sorrow. Of course more people are drinking at home, but from the studies I've seen bars that were popular before are still just as popular.

-As far as working all the time in the bar, that depends on how you look at it. If you see it like an American does where you need a big car to drive to and from your bar, sit in traffic, worry about DUI's worry about serving a % of food with your alchohol (many states require this) , hiring fat America women and troublesome dishonest bartenders, bouncers, pay roll etc. Its a lot of work.
-If on the otherhand you think of small Pub , lounge in a nice little town abroad, you may live just above the place, or down the street. You run the pub and open and close when you want, hire local hotties, have the place as your own hang out where you are a permanent fixture and do as you please, but happen to sell alchohol too, then it seems a little brighter. Of course Im sure there are laws and regulations, taxes etc that you need to follow abroad but I bet it would be 10x better than owning a place in the US.

Post: #14

for me it would be social and if I made money thats just a little icing, again I would expect it drain out money like a boat with a hole in the bottom. if you have a country where you dont need a liquor license, you can figure probably 1000 a month in rent for a decent spot, 150-200 in utilities( I am guessing here) Labor should be cheap a few hundred. To open, maybe 5-10k in construction (using local materials and local labor) Go low end on the sound system, not more then a few thou (its either a lot or a little no real inbetween) starting inventory atleast 1-2k, I would keep it simple and not go for variety.... high end low end rum, vodka, whiskey, local hard shit, local beers, a few mixers and sweet liquors for girlie drinks, water gatoraiD, then you decide if you are going to sell cigs, snacks, food, etc... its a pain in the ass. I would keep it as simple as possible in the beginning.

ALso figure a loss as most guys are going to be giving out tons of beers and drinks to the girls, which ads up a LOT faster then you think it does. I think the best/cheapest way is to have a bottle of local shit and make the girls drink that. They are used to it and like it by that point, sure they will want bud light, and smirnoff and fucking johney walker black, but most countries you can get the local stuff for about 5-10 bucks a bottle, it saves a LOT of money.

Dont forget local police and shit are gonna probably expect to come and drink for free atleast a few, as my buddy says, I am here to sell drinks not to buy drinks. When you start getting in the habit of giving away drinks, it ads up much faster then you think it will. Stick to the cheap local shots/beers.

You are goign to have to promote, and and probably bribe cabbies to bring people to your bar in the beginning. figure at minimun 2k for opening night to hit the town hard.

now I am just rambling, there is so much shit to think about..... been there. But yeah all in all you could make a really nice place for 50k if you are careful. You will get nickle and dimed and it will ad up much faster then you think. So plan on trying to open only spending 25k and you will probably keep it at 50k

EDIT: If someone was thinking, like a few of us in the other thread, about Hugh Hef lifestyle, it would be best to rent a whole building, bar on bottom, pimp house above, party when you want, take the girls up stairs, etc... make as much noise as you want, and 1 stop shopping. and you already pay the rent for your apt so the bar wont be a big deal.

Post: #15

It looks like there are a few guys that would be interested in doing this. Let's say we have a starting capital of $50K to $100K. We have two options as I see it, either a lounge only or a hostel with bar attached. If we do the lounge only, I would like to see it more sophisticated, maybe serving food during the day time. The food can be kept very simple.

Can we start doing some more research into this? Maybe begin with narrowing down a list of potential countries/cities.

Post: #16

clr - right on. I like your ideas, but I think you are aiming more at a club like tourist spot. I was thinking more like a little 4 table joint. When I was in some smaller towns in my travels I always would see like a little two story aparptment building with a small bar in it. Apartmet up top, bar with a few tables , pool table , ok sound system, open air type place down on the bottom. No real frills to start with, but get attention for having newer foreign music, serve some foreign type food (couldn't find good chips and salsa anywhere in Europe) , import some American beers. Have a few theme nights a week. I think allot of people would be surprised at the kind of attention a place like that could draw as even just a chill out, pregame type bar for a hot crowd looking to go out for the night.

- Ever notice how hip hop or alt rock or any cutting edge new shit doesn't get to some other countries untila few years later? Have friends back home that send you some new updated mp3's every month and have listening parties / DJ whatever. - Last time I was in Colombia I heard fucking Coolio on the loud speaker in a nice ass bar with fine girls...funny.

Post: #17

"Last time I was in Colombia I heard fucking Coolio on the loud speaker in a nice ass bar with fine girls...funny."

As average as Coolio was in his day, he is probably better than 99% of modern MC's.

Post: #18

"Ever notice how hip hop or alt rock or any cutting edge new shit doesn't get to some other countries untila few years later?"

Last weekend I was in Brasilia, Brasil at this banging party and all of a sudden MC Hammer - Can't Touch This came blaring on the speakers followed by Rick James - Super Freak (which I didnt mind at all and got extra cream for reciting the lyrics in a Hot Brasileiras ear)...Nuff Said!

Post: #19

"followed by Rick James - Super Freak (which I didnt mind at all)...Nuff Said!"

Yeah, American clubs could learn a lot from this.

Post: #20

rocco thanks, and I figured out the way to get thousands of dollars worth of dj's for free.... z100 out of NYC copy the play list plus they sell the cd's it would be new and edgy for the locals and you just mix in what ever local stuff you want.

Post: #21

Telling you bro...we could do it.

Think about it. Every ex pat I've seen that opens a bar has no feel for art, music, modern culture etc usually because he is like 50+ Even a little hole in the wall, in a place wher they like Americans and our music and shit, could very likely be a cool place to be seen, almost the smaller the better get there early and be seen kind of shit. Come for the music, artist, college crowd.

This of cousre would work in some Western Eueropean cities, certain South American cities (dont think beach because its saturaated but think like Santiago or Bogota l where they have allot of univerisities, art, scenester kids and shit. If you are taling Rio, Cartegena etc then its the same...t shirts flip flops, beach music hot weather etc.

Post: #22

[quote='InternationalSwagger' pid='26613' dateline='1283282607'

Last weekend I was in Brasilia, Brasil at this banging party and all of a sudden MC Hammer - Can't Touch This came blaring on the speakers followed by Rick James - Super Freak (which I didnt mind at all and got extra cream for reciting the lyrics in a Hot Brasileiras ear)...Nuff Said!
[/quote]


LMAO! INT-SW, I would pay to see you dancing/singing along to that MC Hammer Jam from 1990, but I get to film you for repeat laughs

Post: #23

Lol @ Mixx - I was only singing the Rick James "SuperFreak" song to her...Definitely not the MC Hammer Song .

I was kinda surprised I looked up and saw everybody else still grooving to "Can't Touch This" and I reluctantly joined In and kept dancing too....lol...That's what I love about partying abroad no matter how old the song or music or the crowd anything American that was Jamming still gets love!

Post: #24

Agree with some of the comments that you don't need to spend a whole lot on decor on making the place fancy. I think the most important elements are 1) Location and 2) Vibe.

Has anyone been to Cafe Del Mar in Ibiza? It's the crappiest looking bar, but it has a world famous reputation. Everybody goes there to watch the sunset. Big friggin deal. But, they have got a good gimmick going. The place is nothing special, when I first got there I had no idea what the fuss was all about.

Post: #25

I agree with Rocco, in fact my friend owns a resort in costa rica, he is 47 yrs old, he has a bar manager who runs the restaurant and bar. I keep trying to tell him how to set up the place a little better, change the music, promote, he doesnt care about that and basically is fuck it, the bar manager can do it if he wants. Bar manager is a costa rican guy who only knows how to do things the CR way. Stupid.

Though I will be throwing a pool party at the resort and bringing in a few DJ's, no one in the whole fucking town does pool parties, no imagination at all in CR. We are talking Heredia/Alajuela area, the 2nd and 3rd largest cities only 45 minutes from san jose and NO one throws a pool party. Fucking retarded.