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Rick's Cabaret International Inc. Message Board

  • back_2_shorting_rick back_2_shorting_rick Jul 30, 2013 3:56 PM Flag

    Why would a strip club "expert" want to build sports bars with all the competition?

    Yeah, the building looks ok and there was some effort put in, but did the area need another sports bar? And aren't margins tight on these types of establishments, if they make it at all?

    What's wrong with strip clubs where the strippers are printing cash for the business?

    Sentiment: Strong Sell

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Change in strategy is classic red flag.

    • Clearly they rather launch strip clubs.....but there is less regulatory issues. Just looks at the Vivid Clubs, they withheld the locations until the club was nearly open in LA. In NYC, it doesn't matter since they are just swapping one SOB for another. If they release the locations at the beginning.....the neighbors would be up in arms. A sport bar is common, so nobody complains. The margins on liquor is what would matter most in this strategy. They aren't strip club margins, but they aren't that bad either....definitely not razor thin. Plus the increase liquor volume from sports bars should help improve margins at the strip clubs. And Vee Lounge probably does have near strip club liquor margins. Definitely would be interesting to hear how the margins between the different concepts compare in the next CC.

      • 2 Replies to oraclealex
      • Well duh ... the mark-up in the strip clubs has to be much higher ... but so is the overhead. Strip clubs are like casinos ... high grossing, but also a lot of expenses. So much for the $6 Cokes ... got to program in overhead.

      • "Plus the increase liquor volume from sports bars should help improve margins at the strip clubs."

        Wait...WHAT?
        That's nuttier than rat turd in a pistachio factory.
        Heck, that's even more confusing than Father's Day in Texas.
        And that's an even bigger whopper than Eric telling investors at the CC that the chaufers fly the plans so it doen't cost the company any extra.

        People pay extra for liquor at a strip club because there's nearly naked girls there. It's just another cost to see the women. If a sports bar tries to hike the liquor cost too much, the customer will go to another sports club just down the street. This is another reason why the Jaguars and the BYOB strip clubs should be avoided. They don't have the high margin liquor to sell.

    • that is why you boys drive rented cabs and RICK owns dirt and makes cash while you boys drive drunks home

    • They probably see all the money Buffalo Wild Wings is making and think "we ought to get a piece of this." But BWLD is doing it with franchising. If RICK could get Ricky Bobby launched, they would probably try to franchise it. Got to get a name that works first. But how many sports bars can the market take ... looks pretty saturated?

 
RICK
11.27Jul 30 4:00 PMEDT

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