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America’s Largest Biker Bar Sets an Industry Example

Jay Allen sat down for his very first beer at the Broken Spoke Saloon in Sturgis, S.D., back in 1987, it would turn out to be a very symbolic beer. The first beer of the rest of his life, one might say.
    Allen was a patron of the legendary biker bar for many years, and when he heard that Owner Dave Iversen was ready to sell, he picked up the phone.
“I heard it was for sale,” Allen says. “I will never forget, I called him and said, ‘Hey I am one of your customers, and I am going to sell the Broken Spoke for you, because I believe in the product, and I love it. Let’s talk the details over.’ He thought that was pretty funny.
    “I said, ‘I am going to send you an airline ticket to come out and talk this over.’ He was shocked by my confidence.”
    Shocked by his confidence and moved by his passion, Iversen saw more than a salesman in Allen. He saw the future of what he himself had worked to build. Iversen convinced Allen to purchase the saloon in 1993.
    Today, Allen continues his extensive plans for what currently is the largest biker bar on the planet. “The first was Sturgis, and we had it for 2 or 3 years,” he says. “I decided to expand to build a brand name.
    “Now, we have one in Daytona Beach, Fla., one in Myrtle Beach, S.C., and one in Laconia, N.H. In Sturgis, S.D., there are two. A 600-acre facility we just purchased called Broken Spoke at Sturgis County Line and the original in downtown that started it all. Then, we have two 18-wheelers that go anywhere in the country or the world and do this portably.”
    Portability is key in Allen’s life –– as it is with most bikers. The Broken Spoke Saloon honors that ideal by being a presence and a place to party at as many motorcycle rallies a year as possible. When Allen is not driving one of his two 18-wheelers to smaller rallies, he is on the microphone –– with immodest enthusiasm for the overall experience of the subculture –– at one of his permanent Spoke venues.
    The original spot in Sturgis measures a half a city block and accommodates 5,000 people, and, believe it or not, it is Allen’s smallest setup. Down the road, his newest Sturgis County Line facility eventually will serve 20,000 to 30,000 campers with an amphitheater that will showcase the world’s top acts in music. The Myrtle Beach location comprises six acres, with Daytona Beach and Laconia not far behind.
Each of Allen’s locations have relative levels of permanence and operate around the large rallies.
    “Myrtle Beach is in business two rallies a year, for the spring and fall, 16-days total,” Allen says. “Laconia is a seasonal bar, and it is open six months a year. It is the most finished one that we have. Sturgis,” he says, “is open for the summer months. It’s a 10-day economy really, but we stay pretty busy all summer.”
Comprised of glowing neon signs, pole barns with stages underneath and multiple beer kiosks that are rearranged as necessary with forklifts, the Broken Spoke Saloons double as museums. Allen personally owns hundreds of antique bikes, many of which are suspended from the ceilings during setup.
    “We have vintage cars, trucks, gas pumps, beer-can collections,” he says. “If it is old or rusty and cool, we have it hanging up or on a shelf somewhere … big, old, nasty compressors that they used in the ‘40s when they worked on cars, and people are constantly giving me old license plates.”
    In each location, Allen places a 1949 Flame Panhead Chopper at stage front –– a dead-giveaway that you are “at a Spoke.”

Flawless Operations

    The whole operation employs only three souls fulltime –– Jay Allen, his wife and co-owner Claudia Allen and 20-year-old Manager Peter Cimasi. But during a rally, Allen may employ up to 100 people part-time to work the positions of bartender, trash collection, parking, security and retail-merchandise sales.
    “For a lot of it, I rely on them to come to me,” he says of his hiring process. “For servers, we are scouting out and looking for them. They are sending in resumes, photographs and bartending experience.
    “On a good night, I have seen servers make as much as $1800 a shift. They come in for just that one event and then they all go back to their lives. That’s what is so amazing about this. It is finding a person that can step out of their everyday lives to come do a 10-day event.”
    There are ridiculous risks in Allen’s operation as well, including rowdy, enormous crowds, heavy drinking, motorcycles, and a staff he doesn’t necessarily know to be honest. In a 20-year history of events, Allen has only had one ticket for alcohol violations. His track record is an incredible example for everyone in the industry.
    “I have even had corporations ask me to speak to their employees,” he says. “Because the first thing that I do is to tell employees ‘the story.’ And, I tell it well.
    “Keep in mind,” he says, “I am looking at 50 percent of my employees that I have never seen and probably will never see again. So the only way that you can accomplish the philosophy and deliver the philosophy that has made us such a success for 20 years, is to tell them the story of the customer.”
    Allen paints the picture of many of his patrons. Saving quarters in mason jars for years, they come to these rallies with almost no money to spend. They are there for the sheer experience and camaraderie that no other time or place can offer.
    “At the Broken Spoke, our philosophy is that if the guy can only afford to drink ice water, we will give him the ice water. These guys show up on budgeted money, the fact that they chose to walk in our doors is a powerful and amazing thing,” says Allen.

Policing Your Own
    His near spotless record of incidents is not due to a brotherly attitude alone, however. Being the world’s largest biker bar, the Broken Spoke Saloons are monitored by every major law enforcement group in the country. Allen employs one extra set of workers at each rally, and these undercover operatives patrol the properties, inspecting the servers constantly. If necessary, Jay Allen will bust his own employees for improper service and/or behavior before the police have a chance.
    “I explain the sting operation to employees,” Allen says. “I say, ‘you are going to see guys that look like bikers. They are completely wired. They are seeking to see how professional we are, and they are following one-percenters such as Hells Angels and outlaws. So, what we are going to do is have our own sting operation. We watch your pours and over-serving drunks. Because when you are this big, you have to be very professional.’”
    Other security measures include calling the major cab companies in each area to assist with rides to the campgrounds and 24-hour security guards watching over the bikes intoxicated patrons were forced to leave behind for the night.
    Allen’s professional attitude, kind heart and extensive knowledge of the experience from both sides of the bar have generated quite a following. His largest night on record occurred when the Broken Spoke in Daytona Beach hosted a Styx concert. Allen expected 3,000 people and was met with more than 15,000. “They wiped out a 53-foot semi tractor trailer load of beer,” he says. “I think our bar turned somewhere around $90,000 in 2 to 3 hours.”

Finding His Calling

    Allen’s operation is truly one-of-a-kind, and its 20-year success legend is due to a genuine motivation for a great time.
    “We have never been money-based,” he says. “It is more of pulling off a fantasy and showing a better experience. I had never owned a bar before this. I am all about being a biker, and the bar business is the last thing I ever thought I would get into. All of my competitors are ‘in’ the bar business, and I have done it in a whole different style.”                NCB
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