Back in Black
Feeling the Brunt of the Economic Trend,
Operators Find Alternative Revenue Sources
to Increase Cash Flow
By Michael Harrelson
Even in the best of times, it’s no easy feat to keep a night- club or bar in the black financially, and the recent economic slump is compounding the issue.
Today, management must do more with less — simply
because fewer customers are coming through the door and are
spending less once inside, meaning success is measured not in
the maintenance of market share and meeting profit targets, but
in a brand’s ability to hang on and weather the storm.
With this survival strategy top of mind in many areas of the
country, some owner/operators are attempting to gain control of
their bottom line through budget cuts and scaling back or eliminating line cost items, from personnel to music to advertising
and promotions. Rather than cutting costs where the house can
ill afford it, however, others are solving their deficit problems
by creating new revenue streams within the four walls of their
establishments. Not only does the additional cash flow strategy
avert the possibility of turning off customers accustomed to the
atmosphere and service they get at their favorite watering holes,
but it amounts to a permanent solution to a temporary problem
that can add to the overall guest experience and contribute a
pretty penny to any concept’s profit picture over time.
These days, entrepreneurs are finding the means to extra
income flow in some familiar places. Long a fixture in nightlife,
Digital jukeboxes help drive dollars
by keeping guests in venues longer to
hear their favorite songs.
34 Nightclub & Bar Magazine | OC TOBER 2009