10 Ways to Kill a Club
Operational Errors to Avoid

In the quest for respectable nightclub and bar sales and profits, a well-stocked sports bar with a dozen high-definition TVs is as worthless as a glitzy dance floor surrounded by a well-configured sound system if those features don’t satisfy a particular market’s needs. Failing to properly seek out and anticipate a market’s needs and wants or neglecting to follow a clear mission statement are just a few of the crucial missteps that are bad for business. Industry veteran Garry P. Smyth helps avert disaster by sharing his top 10 critical operational errors and ways to avoid them.

1. Failing to Train, Train, Train
    Training should be consistent and occur on at least three levels: managers, key and lead employees and customers. While managers and employees should regularly undergo refreshers on operational efficiency and service procedures, strategic marketing can train customers on how to respond to an establishment’s different points of sales and programming, a particularly effective means of reaching infrequent nightclub users. Make guests immediately think of you as a venue for their friend’s birthday or co-worker’s farewell party.

2. Ignoring the Need
    Ask yourself, “What is this market missing? What’s the hole that needs to be filled?” Answers to these and similar crucial questions will help an operator find a niche. A concept that’s off-target in a particular market spells doom.  

3. Under-use and Misuse of Technology
    Just because you can, doesn’t mean you should. If your club concept is tailored for a fun, easy-going, low-brow, approachable clientele, waitstaff probably shouldn’t be armed with Palm Pilots to take orders. Such hi-tech gadgets may take away one of the attributes that nightclub servers are admired for –– their ability to remember drink orders. That personalization is diminished when waitresses start tapping on the petite hand-held devices. However, take advantage of Web technology to communicate with your clientele and get interactive. Allow users to share their memorable moments at your establishment online via the Internet.

4. Failing to Work Your Concept
    Extend the life cycle of your concept as long as you can and the more profitable you’ll be. Constantly look at what you’re doing while ensuring that you’re continuing to be fresh. Be the ever-changing party. Always look for ways to change the customer’s experience somehow.          

5. Arrogance by Managers, Employees and Owners — Check the Ego!
    Avoid “hobby operations” or operating solely on ego. Opening an establishment for oneself or one’s friends is as destructive as believing everyone will like the same things that you like. Never put yourself in front of the customers.
    Always remember, you’re there to entertain the general public and if you’ve been doing a great job, they’ll buy a drink or pay a cover.

6. Poor Accounting Systems
    You always must know the number that makes the company’s engine profitable. Finding out in May that you’ve lost money in January can be disastrous. Produce a report card each week. You better can adjust expenditures and make changes as you go along because you have accurate information that’s timely. For the people helping you run your company, consistent accounting gives them real feedback that most employees want.

7. Not Committing Fully to a Concept or Promotion
    It’s effective to have a cadre of employees who can contribute to and help see a concept through from beginning to end. Management should involve employees in the concept, so they, too, can feel a sense of ownership — not edict — in the plan. Ask the staff, “What else could we do?”
    Staff may help you complement a full-scale promotion that enhances the customer experience even more. Once employees have contributed and committed to the concept and feel like they have a personal stake, they promote it better. Employees have great ideas; you just have to ask them.    

8. Ignoring Customer Feedback/Not Responding Quickly Enough
    There’s no better way to tell customers you don’t care about them. Always be swift in responding to their concerns or interests, or they’ll quickly forget you. Repeat events and promotions (with added fresh twists) that turn out to be wildly popular. Show off snapshots of happy guests on the club’s professionally maintained Web site and let their curiosity keep them coming back. Let familiar customers know that you’re interested in them and allow curious clientele to view the pictures to see if they think they’ll fit in. Stay in touch with your guests by sending e-mail blasts to names kept on databases.        

9. Hiring the Wrong Managers and Lead Employees
    Staff the club with people who want to work there because they love nightclubs themselves, which means they’re Type-A, social animals.   

10. Not Establishing/Keeping Measurable Systems in Place
    If you can’t measure it, you can’t manage it. Know how much revenue was made or not made from the previous week on a weekly basis. If necessary, make crucial changes based on that timely information.                              NCB
 

Garry P. Smyth is the co-owner and co-operator of the concept, The Bamboo Room, whose two locations in Chicago feature live drummers, a full service menu, Tiki Lounge and nightly transition from a restaurant to a nightclub. An owner/operator for 16 years in South Florida and the Chicagoland metro area, Smyth is co-author of “10 Steps to Improving Nightclub & Bar Sales and Profits.” The readers of Suburban Nightlife Magazine in Chicago awarded The Bamboo Room “Best Nightclub” for the second year in a row. He lives in Fort Lauderdale, Fla., and Chicago.