Strip clubs on the Strip

A friend of mine suggested the idea of putting a great strip club on or near the Strip. Before Walgreens was built next to Planet Hollywood that would have been a great location for the best Strip club ever. Or where Krave was. Hawaiian Marketplace, Fatburger, etc.

Why isn't there a strip club closer to the Strip? It would be a huge moneymaker.

 

I imagine it's a zoning reason (although I don't know that for sure).
I suppose technically Olympic Garden could be considered on The Strip since it's on Las Vegas Blvd.

 

Downtown has a strip club under the canopy, and that place is awful.

 

with a very few exceptions strip clubs are not huge money makers and there is a reason (even besides zoning) that strip clubs are generally in trashy and low rent areas of the city

it would be the death of a strip club to be stuck right up front with huge rent/overhead cost

 

There have been 3 or 4 but because rent is so high they didn't work. Even Wynn had one and it didn't go well because of zoning. All the strip clubs are along industrial.

 

The rent argument is what's confusing to me. A restaurant like Harley Davidson Cafe has survived about fifteen years competing with so many restaurants inside hotels. Same with Smith and Wollensky's. Hawaiian Marketplace has a footprint that would fit quite a large club. I would think a strip club would bring in more revenue than these places. And done right, it would fit well on the Strip.

On the other hand, I know successful business owners have already investigated the opportunity and decided against it. On the other other hand, dumping a jillion dollars into a risky business venture has been done on the Strip and will happen again. (I'm talking to you big giant ferris wheel.)

 

Honestly, if one of the big casinos put one in, I think it could do well. Doing an independent building, won't work. The bottom line is you spend money on a lease, you make less. Everybody said sapphire would never make it. Ha

 

the market segment for the Harley Cafe is anyone with a pulse for the most part and while they may have a segment of anyone with a pulse they really target that segment cans till drag their wife and kids into "their Harley Cafe" to all have a meal

the target segment for strip clubs is 21yo - 45yo males and generally ones on a "bender" or a bachelor party or ones that are just flat desperate (does anyone know anyone that frequents strip clubs that is not heading rapidly to down and out or worse living their dream of marrying a "former dancer" )

also strip clubs generally have one thing they sell and that is liquor and the dancers are competing against that vary sale because every drink you buy is that many fewer dollars to make it rain and I am not sure it is legal to charge "stage fees" to dancers as a % of their total take for the night I believe most places the stage fees have to be a set rate (I could be wrong on that)

either way from an ownership perspective strip clubs are like owning a bar or club with a very very limited target market and pretty much booze sales as the only thing to bring in profits......even food sales just struggle for so many reasons like they get too drunk to eat, they spend it all on booze before food or more than likely they spend it all making it rain before they figure out they are wasted, out of dollars and hungry so they hit the hot dog cart or the drive thru on the way home

the days of any business man (reputable one or not) and expense accounts being used to cover strip clubs are long gone and many places that attempt to expense a strip club visit would get you fired because of the whole aspect of "women in the work place" and "what if you had had a female business associate with you"

 

I would reopen Gallery before I would open up a strip club on the Strip. LOL

Like you all said, the money is made on alcohol at a SC. Think of how many people actually walk in those doors. When you think about it, its really not that many people in there per square footage. Some of these clubs, you have people fighting for space along the edge of a pool.
A club, everyones buying drinks... even bottles/tables. Your only focus on spending is on alcohol. At SCs you're splitting your spending money for lap dances, etc. Even clubs, theyre making money on water. LOL. How many people buy $8 water at a SC. haha.

 

Having a club on The Strip would be a poor business decision.

First, the location isn't really going to add much in the way of business: people who want to go to strip clubs will go to strip clubs, there isn't going to be that much walk in traffic that will justify the added cost of paying for a premium location.

Next, the other places like the Harley Davidson Cafe it doesn't matter how much they make or pay for their rent... it really comes down to: the land/rent is going to be so much cheaper elsewhere and if your customers come to you then why pay a premium? Its like if you were opening a retail store and you had to choose between two locations and location "A" the rent is $2000/mo and you'll probably move about $15,000 a month in merchandise and then the second choice is location "B" where the rent is $10,000 per month and you are going to probably move about $18,000 a month in merchandise - the obvious choice is "A" because even though you'll have more sales at location "B" you will ultimately make less money there.

And finally, its usually just land and space: if you go to some more remote area, again with your customers coming to you, you can pretty much open up a huge location and have options to expand, which you probably wouldn't on The Strip

 

The rent for an old nightclub spot that hasn't been open in years is over $200k a month on the strip. Now add renovations and liquor license.

 

I love it. Thanks for the laugh. I also have wondered about the wisdom of pouring capital in to that project (especially for a company like CET that is drowning in debt).

 

If there was a spot that would be closest to the strip but not on the strip that would work, would be the old ICE club location on Harmon. haha.

Unless the zoning wont allow it.

 

Glitter Gulch. That's no lie. The place is a wasteland. Avoid. Gives me chills just thinking about it.

 

The zoning laws are really weird, plus that will eventually be a high rise or casino. Small strip clubs don't do well. Sheris, velvet lion, seamless, sin, pussycats and many others. They need huge financial backing. The strip like someone said is just not that great of a place, even nightclubs that cater to anyone over 21 can't make it.