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2005 Trends Special Section
A Look at the Major Themes of the Past Year
Every year, the limits of just how incredible a nightclub or bar
concept can be get pushed to the edge — and often beyond. With global
networking right at our fingertips, the world has become smaller, and
the speed of business in the United States today? It’s virtually
instantaneous.
The modernity of today’s on-premise operations demonstrates just how in
tune suppliers are with owners, owners are with managers, managers are
with staff and staff are with guests. More importantly, however, the
level of savvy maintained by operators is unprecedented — often guest
demands and desires are met before they even set foot through a venue’s
door. And the reasoning, as complex as today’s world is, is simple:
trend identification.
Look around at what all is happening around the country — and the world
— today and how it relates to the industry around you. The next big
trend can translate into big bucks for those in the know. From music to
fashion, from menus to foodservice or from cocktails to concept
lighting, this smaller planet is translating into sky’s-the-limit
sales.
Frosty Sellers Brew Up Warmer Horizons
Beer Consumers Remain Lucratively Loyal
While everyone wants to finish a year with a good aftertaste from that
final toast, not every company can be on top by the simple laws of
supply and demand. In the battle between liquor and beer in 2005,
liquor came out the clear winner, with vodka trumping all. However,
beer is not by any stretch of the imagination down for the count, and
the past year definitely was successful, even if sales were a little
lower.
Consumer Value
“Whether you are on-premise or off-premise,” says National Beer
Wholesalers Association (NBWA) Vice President Craig Purser, “beer is,
and continues to be, a major contributor to the bottom line of
retailers. Both in volume and margin, it is a great value to the
consumer.”
These words couldn’t ring truer. Beer is a quintessential drink for
every bar and an American institution. While the sudden and somewhat
unexpected top-shelf liquor craze has clutched the country at the
moment, there is no fear for the profit potential of beer in 2006.
The Contagiousness of Craft Beer
“We favor our local brewers in the fertile crescent here,” says Chris
Mullins, native New Englander and owner of the Philadelphia, Pa., bar
McGillin’s Olde Ale House. “We are blessed with a wealth of brewers.”
For many bar owners in 2005, pushing a cold one has meant focusing on
the craft selection as a means to combat the variety of taste offered
by the liquor selection. “I pay attention to the innovations on a
national level, but it is like politics,” Mullins says. “All beer
drinking is local.”
McGillin’s Olde Ale House took heed of the trend toward bigger beers
this year and switched their Yards ESA to an IPA. With the switch,
Mullins reports that his sales almost doubled. Three years ago, Mullins
also took a big step to keep his product fresh by adding a pump system.
There no longer is a need to infuse each keg with gas, and without
oxygen added, the natural craft beers are lasting longer.
Low-Carbs Level?
“For the first time in 12 years, this past January was the first time
that liquor outsold beer for the month,” says Mark Kelcher, the owner
of Jack’s Pub in Dallas. But, he does report that at his predominantly
college-crowd friendly establishment, the low-carb trend seems to have
evaporated. “I think people are over it,” he says. “A year ago,
Michelob Ultra was the hottest thing. One year later, it has dropped
down by 85 percent.”
2005 definitely has seen the rise and fall of the low-carb trend in
many markets, as well as the energy beer trend, and more than one bar
owner now is satisfied with a return toward bold taste and higher
alcohol content. “People are trying the exotic, bigger beers,” Kelcher
says, “and becoming more experimental.”
With
this seeming send off to the dietetic and turn toward taste, beer
can expect a better year in 2006, with drinking once again being
concerned with flavor instead of losing weight. “The entire beer
industry is reaching out to on-premise,” Purser says. With the promise
of “marketing initiatives that are more directed at the consumer,” he
adds that they “are hopeful that 2006 will be a better year for
beer.”
design now for a better future
Think Club Design Doesn’t Directly Drive Dollars? Think Again.
For a new twist to an old question, “What are the current trends in
club design that I should be aware of, learn about, and consider
adapting to enhance the concept of my dreams?” Nightclub & Bar
turned to one of the best, brightest and busiest designers in the
industry, Steve Lewis. Lewis has worked on projects too numerous to
list here, but suffice it to say, club entrepreneurs and co-principals
Noah Tepperberg and Jason Strauss turned to Lewis for guidance and
inspiration on New York City’s Marquee nightclub, their lucrative,
opulent guest-pleaser which celebrates its second birthday this month
and still is the toast of Manhattan.
The following is a Q&A with Lewis that promises to answer more
questions than were even asked as owners nationwide evaluate their own
environments coming into the new year.
NCB: If you had to name THE design trend of 2005 to date, what would you say it has been, and why?
Lewis: “THE design trend: high design, low tech — return to simple
materials and methods. There is more craft in design today, more
evidence of our hand shaping natural elements. Sleek, industrial design
products are infused with crafted style, like the cracked vases by
Rosenthal, to provoke a human response and comment on the beauty of
imperfection.”
NCB: What other club/bar design trends have been influential to owners this past year?
Lewis: “Embracing organic materials and forms in modern silhouettes.”
NCB: What might operators look forward to in 2006 in terms of décor?
Lewis: “Murals, of course. Also, incorporation of/allusion to
historical references re-imagined in contemporary ways, instead of
ignoring the past in favor of a sleek, unadorned future.”
NCB: What would you say has been the most influential to design trends? What variables come into play here?
Lewis: “Technology. Not just the exploration of new technology and
applications for new materials, but design as a response to technology
— the hand-crafted movement is a commentary on technology — not a
criticism, but a reminder of our hand in the process.
NCB: What might today’s club or bar owners be neglecting when it comes
to their venue’s design? What tips might help them improve their
environments?
Lewis: “I think most owners underestimate the importance of ambient
lighting design and the tremendous strides technology has taken to
ensure the creation of the ‘perfectly’ lit environment.
“I think a well-balanced sound system, is one that allows people to
hear themselves speak in places where they might want to actually do
so, which still delivers the oomph or bang where oomph or bang is meant
to be. Again, there are so many components available to the sound
designer that overkill shouldn’t be a concern ... we have also been
providing product which is placed under the vinyl or leather of the
banquette/seating which prevents tears from high heels and such.
Although this one-time expense does drive up the cost of opening
slightly{rarely a good thing}, it does ensure that the club looks great
after opening night and the initial photo op. Most design firms see
opening night as the end of their work ... we believe that materials
need to be both aesthetically correct and last the test of
time.”
send ’em home satisfied
2005’s Food Fare Was Financially
Filling
Ever walked past a bar and gone in from the smell of food alone?
Something in the kitchen most likely was covered in cheese, deep-frying
or sizzling on the grill. Not everyone in every bar is a drinker. Sure,
while a considerable amount of venues will be claiming up to 60 percent
in alcohol on their overall sales taxes come April, there is that 40
percent to be considered. And, while America may have its fanatic
tendencies toward insane diets and food fads, ultimately, everyone
breaks down for a burger and fries at some point. Let’s hope it’s at
your bar.
Food is a Factor
Several aspects come into consideration when looking at the food trends
of this past year. Gas prices have flowed steadily upward as hurricane
after hurricane slammed ashore, and people who would have gone out for
one beer, possibly a fairly extensive drive in a major metropolitan
city, now are avoiding the frivolous waste of fuel and staying home.
To combat this, many bar owners have dawned on the conclusion that
while a Budweiser and a shot of Jågermeister won’t necessarily pull a
patron into a destination venue, an appetizer, a good meal and an
after-dinner drink with friends definitely might.
At Nectar’s in Burlington, Vt., Co-owner Damon Brink says it always has
been a music venue first and foremost. But, changing with the times,
the owners of Nectar’s have noticed areas where the profits could be
larger –– food.
“Instead of coming in and having a drink and leaving,” Brink says, “we
are saying ‘come in, have a drink, a good meal and a show.’” Gas prices
have affected distributors, and Brink admits that they aren’t putting
the effort into it like they used to. “We would like to see them do
more,” he says. At Nectar’s, they have begun revamping their
30-year-old menu in hopes of boosting sales in 2006.
Healthy and Wealthy
With the trends in alcohol having shifted toward spirits over beer this
past year, the trends in the calorie count of bar food in 2005 has
altered some, as well. Many places that were strictly watering holes
now are sending some of that budget toward the food distributors’
offers of a little more health-conscious cuisine.
“Austin has a non-smoking thing in all restaurants starting September
1,” says DaNiece Davis, manager of The Water Tank in Austin, Texas.
“Now, our liquor and beer sales are down 10 percent, but food sales are
up. People are eating more when they drink, and they are drinking
safer. If they have a few drinks, they want to have some food with it.”
At The Water Tank, they have opted for home-cooked instead of frozen to
go with the trend of healthier eating. “It does affect us,” Davis says,
“and we added some veggies and some grilled chicken salads. People are
doing less carbs, so here they come in and order the burger minus the
buns.”
At The Shout! House in San Diego, “All bets are off,” says Marketing
Manager Charice Leabo. “Pizza is always a staple in a bar.” While The
Shout! House is not giving up the grease anytime soon, they have
noticed the trend of distributors pushing more complicated, healthier
options. “They are trying to get small appetizers for us to try,” Leabo
says, “like mini quiche.
“It will be bigger in ‘06,” Leabo says of the rising food trend. “We
noticed that our kitchen closes at 11 p.m., but we are open until 2
a.m.” So for next year the kitchen is staying open later at The Shout!
House. “Some guests have been leaving to go get food. We are now going
to keep them in that chair for the extra hour,” she says.
Three to Win
Melding Operational, Promotional and Technological Trends For Success
A new operational move here, a hot traffic-generator of a promotional
step there, and hey, pretty soon we’re talking success at your
operation(s) in 2006.
If only owners and operators at the more than 60,000 bars, nightclubs,
lounges, taverns and casino resorts across North America could see
ahead of their coming business cycle and know what to look for and what
to avoid in the near future.
Well, now they can, because Nightclub & Bar has accessed a few of
its databases and done the homework by surveying some industry experts
to find out the happening trends in operations, technology and
promotions in the year ahead.
Operations & Technology
Technology increasingly is becoming linked to operations as the common
denominator separating average and successful clubs from supernova
nightspots. As Charlie Greener, a familiar speaker at “The Show” in Las
Vegas and CEO of Harborage Intl., a Dallas-based company specializing
in bar and club design and operations, noted recently, the acquisition
and use of technology is now equal to the difference in whether a club
survives the critical first few years of operation or goes bust after
the initial novelty wears off.
Clubs that do not invest in technology are falling increasingly by the
wayside to make way for the tech-savvy operations that understand how
to get the most out of it every day, Greener says. Examples are
endless, from smarter POS to watchful security eyes to new audio and
lighting wonders.
Pop Quiz
As bar and club operations whiz Jon Taffer has noted in previous issues
of Nightclub & Bar magazine, owners and operators have a
particularly steep mountain to climb to success on-premise. He
estimates that eight out of 10 clubs will fail in the first year of
operation.
All the more reason to do your homework, says Taffer, who successfully
has opened more than 700 venues in his career as operator, owner and
now CEO of Taffer Dynamics, a Palm Beach, Fla.- based consulting
company with a powerful international track record of achieved results.
One example he often cites is that of the new operator attempting to
duplicate a Ladies Night promotion when a competitor already owns the
market segment. “Success in that regard is based on the actual event,
the timing of the event and communication in the market place,” Taffer
says. “This can be a tricky formula if the right advance homework is
not done.”
Just as with operations and technology, Taffer says building
all-important, repeat business also requires making operations and
promotions work together.
To identify first-time visitors and turn them into repeat customers, he
developed a “Red-Napkin Program,” used by Ritz-Carlton Hotels, whereby
new guests are tagged with a red napkin as they are seated in the
establishment. This alerts managers and servers to single out the guest
for special promotional treatment, such as a free glass of wine or a
complimentary appetizer. “Thirty years of statistics tell us that
if you can increase guest frequency by one visit per month, that’s the
equivalent of an 11-percent increase in revenue,” Taffer says.
Head of the Class
For the ambitious bar and club entrepreneur who wants more than just to
be in the black in 2006, Taffer suggests burning some midnight oil with
his how-to-succeed, hospitality primers written specifically for
on-premise owners, operators and managers. The popular Las Vegas show
speaker has developed a series of management books that he calls
management tool kits. One of these books, “Grand Opening Dynamics Tool
Kit,” provides a basis by which an operator can develop a powerful
grand opening marketing program.
Another book in the Tool Kit series is, “Taffer’s Promotion Dynamics
Took Kit,” which provides operators with techniques for developing
powerful promotions and includes about 50 promotions as examples. The
books are available at tafferdynamics.com.
Want to learn more from the masters? See Charlie Greener and Jon Taffer live at “The Show” in Las Vegas.
Getting Set for ‘06
It’s a Wide World of Nightlife, and Music’s in Motion
Wow 2005. What a ride, huh? For those of you in the biz out and
about this past year, shakin’ it all night long, it has been an
ear-thumping, sensory experience for the most part, to be sure. Nearly
every night of the week someone somewhere was pushing the envelope from
big-name DJs, to some great new discoveries in the realm of live bands.
We owe a big round of applause to all you in the industry who were
willing to go out on a limb, risk a little revenue and breed a little
artistic cultivation. And to all of you who merely turned on the
satellite radio and got by with the easy listening blasé background
stuff, well — there’s always 2006!
For this look back and complementary look ahead, Nightclub & Bar
asked a few in the industry how they felt about the past 12 months, and
— despite the fact that clandestine psychic abilities were not a
prerequisite for the interviews — we asked them what they saw for the
next 12 on the calendar as well.
DJs at Play
“I actually think it has slowed down a bit,” Billy Dec, president of
Rockit Ranch Productions and owner of Le Passage, in Chicago, says of
the power of the DJ movement this year. “Thankfully,” he adds, “because
rates and hype were simply getting out of control. The cost in no way
could be justified by the demand, especially when considering capacity
issues in a venue. You can’t fit that many people in a place to make
sense of paying outrageously high rates. I also think the market in
general has appreciated what’s been offered through the mainstream to
the point that the music they want can be heard by more random DJs.”
While it seems everyone on the planet was clambering to either see a DJ
or be a DJ in 2005, the rates became astronomical. Big names were
asking as much as $20,000 for one show, and many in the industry were
pushed to broaden the spotlight to include some lesser-known names. “I
have seen an increasing interest in celebrity DJs, like ex-rockers now
spinning, DJs in tabloids that are not necessarily known for what they
spin, but for who they are. This has boomed this year in popularity,”
Dec says.
Live and Kickin’
Hip-Hop gave a little slice of the pie to its stepchild, Reggaeton, in
2005, but in the live music household, there were constant squabbles
for the spoils.
“I think there is a still a market for it,” John Best, manager of Club
Shelter in New York City, says. “But, I think it has dwindled, with the
record sales and the ipod.”
While the burning, and what some would call looting, put record sales
in a headlock this year, the live music aspect thrived at places like
Longbranch Entertainment Complex in Raleigh, N.C. “One of the reasons
we have made it so many years (founded in 1984) is that we are changing
constantly,” says Dan Wood, general manager of this County-Western bar.
For 2006, Wood says they will promote live music even more. “All those
people who don’t know how to dance, they don’t mind sitting and
listening,” he says.
Finally, this cannot end without the mention of equipment. The question
posed? What do you boys want for Christmas in order to rock the New
Year the right way?
• “DVJ – X1 DVD player. Huge factor in more music video being played in the clubs.” — Wyatt Magnum, CMS, Houston
• “Phazon – fantastic job equalizing the system. No distortion. No
feedback and once you build a relationship with this company, they will
come in personally.” — John Best, Club Shelter, New York City
• “We would upgrade the light show and put music videos on the wall.
Put a camera on the dance floor, and let people see themselves dance.”
— Dan Wood, Longbranch Entertainment, Raleigh, N.C.
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