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Thread: Opening a Gentleman's Club

  1. #1
    Join Date
    Aug 2008
    Location
    Indiana
    Posts
    14

    Opening a Gentleman's Club

    I am in the preliminary stages of opening a new high end gentlemanís club outside of Indianapolis, IN.

    My personal background is in club management, be it nightclubs, bars, restaurants and more recently country clubs. I have had associates over the years that were in the adult club industry in addition to my time as a patron so I do not feel as though I am naive in how I am approaching this venture.

    I want to create a club that can rival Las Vegas, NY, and the many in FL that are all so well reviewed.

    My plan is a steakhouse/gentlemanís club similar to that of Treasures in Vegas. Throughout my management career I have put together numerous business plans, however this one is different.

    I want a facility that offers valet parking for my guests and numerous perks for my dancers to include tanning packages, salon and nail allowances, and also a clothing allowance. My initial research has shown that clubs that offer similar packages to their dancers have a payout of 25-30% and cover charges of $10-$20.

    I suppose this is where my lack of direct experience comes into play. How do I find a good balance for my market with regards to door, payout % and so forth? I have visited the only other two establishments within my immediate area, however, they are both extremely small and are not close to the level of service and atmosphere in which I hope to generate. Also, an opinion on what sqft might be best would also be of help as I shop for a location.

    I apologize for not going into much detail but seeing as how I am not open yet I believe that I need to protect the details of my venture as much as possible.

    Thank you for any assistance that you might be able to provide, it is appreciated.

  2. #2
    Join Date
    Jul 2008
    Location
    Los Angeles, California
    Posts
    122

    7-10,000 square feet might be a good start

    7-10,000 square feet might be a good strating point for you. How many stages do you plan to have ? VIP section ? The gentlemen's clubs in Vegas are all pretty decent sized venues.

  3. #3
    Join Date
    Aug 2008
    Location
    Indiana
    Posts
    14
    I have been shopping in the 7-10K sqft and even looked at one that was 12K. The plan as it stands is to have two side stages (tipping stages) and then the main stage. There will be a VIP area, private couch dance area, and even a champagne room type area.

    I came upon a building that was built 4 years ago and no expense was spared, total construction was roughly 1.2 mil and it sits on 2 acres. This was a performing arts center with state of the art sound and lighting. This building is sitting the same as the day they closed with everything still in place, equipment, furniture, etc. My Realtor told me today that the new list price is 550K and she believes there to be more room still there. This building is about 10,400 sqft and I am going to look at it tomorrow 8/8. The one down side to this building is that it is not in the high traffic area that I was originally looking, however, I do not anticipate the fight regarding my venue that I would have in the higher traffic area with the city council or citizens. I believe that I can market around the location difference.

    Thank you for the input and I look forward to hearing from others as well.

  4. #4
    Join Date
    Jul 2008
    Location
    Los Angeles, California
    Posts
    122
    Sounds good. What type of laws do you have out there in indiana in regards to gentlemen's clubs ?

  5. #5
    Join Date
    Aug 2008
    Location
    Indiana
    Posts
    14
    The local zoning guideline says that adult uses may be located in B2 (General Business) or I1 (Industrial zone) districts and that not adult use may be located within 500 feet of the nearest property line of any residential zone, church, park, private school, or public library.

    The building that I mentioned above meets the 500' guideline, however, it is currently zoned B3, however, I believe that I have made enough connections with the city to not have much fight in a zoning change or a variance.

    Please keep the suggestions/questions coming from all as I pay attention to this posting while studying the other areas of these forums. I am a knowledge junky as the more I know the less I will screw up, lol (in theory anyhow).

  6. #6
    Join Date
    Jul 2008
    Location
    Los Angeles, California
    Posts
    122
    Please keep me posted on your progress with this project.

  7. #7
    Join Date
    Jan 1998
    Location
    West
    Posts
    1,140
    Back when I was working with one of the chain Gentlemenís Clubs, they had a Masseuse on staff that took care of those little sore muscles.

    I guess that it would be like a sports teams Trainer. It really made a difference when it came to hiring premium talent.

  8. #8
    Join Date
    Jan 1970
    Location
    Chicago
    Posts
    945
    I'm confused Dave- where you the masseuse for their sore little muscles or did you use their massuese for your sore little muscle?
    A cleanup guy.

  9. #9
    Join Date
    Aug 2008
    Location
    Indiana
    Posts
    14

    never thought of that.....

    HollywoodNights I will keep you informed as I make progress with this project.

    I had not thought of a "staff trainer", but I have to admit that it does not strike me as being an odd thought at all. With that being said, gym memberships of some type could also be a good idea.

    I have looked at the above mentioned building and it is a very solid building. The layout and build out are in question, but I have requested a floor plan of the building which will help. Again the original construction cost was 1.2 mil and I have been told that they would settle for the outstanding balance on the note which is about 350K.

    My thought at the moment is to spend the 350K to purchase the building and then refi the property to finance the build out and other opening and initial operation expenses. In essence opening this project for very little out of pocket.

    I appreciate the feedback as it is nice to know the my thoughts and ideas are not to far off track.

  10. #10
    Join Date
    Aug 2008
    Location
    Indiana
    Posts
    14
    Well I found a site that is already zoned correctly and it meets the 500' rule set by the city. However, this building use to be a cinema which means, the utilities are not where I need them to be and there is no grease trap in place. Not taking into account the already large expense of building a kitchen, moving utilities and installing an initial grease trap are going to be huge.

    I have not given up, we are exploring options as well as the possibility of locating in another town, perhaps Indy itself, there are some fabulous locations available for lease, but I need to check into the zoning codes for Indy itself.

    I will update when progress is made, thanks all.

  11. #11
    Join Date
    Jan 1998
    Location
    West
    Posts
    1,140
    I don't know how you feel about tradeouts?

    I did a build out that the bar owner traded most of the labor by the Plumbers, Electricians and the others. He just paid for the materials. The guys had an open tab that they could use when ever they wanted to. It took almost a year to pay off the labor costs. It saved the owner money upfront and financing.

    I think that this might work for you.

  12. #12
    Join Date
    Aug 2008
    Location
    Indiana
    Posts
    14
    That is not a bad idea at all, in fact, as a Country Club Manager I have done tradeouts several times. Memberships in exchange for certain marketing packages, etc.

    I am still in the number crunching/information gathering stages of this project, but you are right, that is something to keep in mind.

    The flip side to that is it will cost me less even though it will take me longer to pay off.

    The credit would be reduced by sale price of drinks, food, etc, and not by my cost, in essence saving me 25-30% in addition to having the contractor essentially carry the bill.

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