Investing in a Strip Club

LMN
Has anyone here ever seriously considered investing in a strip club?

From a business standpoint, its a pretty sound concept with all the employees being 1099's that pay "rent" to the house. Especially if you lived somewhere that you were allowed a full liquor license to serve (4COP liquor license i think?)

I have a friend of a friend who owns a good chunk of equity in a few popular gay strip clubs. He does very well from them but he insists that its much better money in the gay clubs than the straight clubs.

I imagine the biggest issues would be raids and probably the amount of "protection" fees you would have to pay monthly to keep the police from shutting down your operation (or attempting to run a completely clean club and not generating anywhere near the same revenue as clubs that offer extras and drugs).

Thoughts? Experiences?

18 comments

Latest

  • mikeya02
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    11 years ago
    ha ha, why everyone has thought about owning a popular gay strip club. That's where the high rollers go and the club makes tons of money. You really gunna stick with this buffoon act?
  • LMN
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    11 years ago
    Why do you whine in all my threads?

    Its not my fault you live paycheck to paycheck. Blame yourself for not attending a good college. Or perhaps blame your parents for being manual laborer deadbeats?
  • mikeya02
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    11 years ago
    I guess you are
  • deogol
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    11 years ago
    Try it, see what happens. Report back to us. Myself, I prefer investing in something that isn't limited by law as to how many may be in an area.

    Try redbox.
  • jackslash
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    11 years ago
    I have thought of investing in a strip club. Then I thought better of it. I enjoy being a strip club customer, but being as strip club owner is completely different. As you say, you would have to pay protection money to the police--and also to politicians. In addition, you would have to face down criminals, motorcycle gangs and the mafia. You would have to deal with employees and independent contractors who may not have the highest morals and integrity and who would rip you off if you're not constantly watching them. You would have to put up with dozens of strippers--lying, thieving, unreliable whores--and the experience would probably turn you gay.
  • tumblingdice
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    11 years ago
    Strip Clubs,great place to visit,but you wouldn't want to live there.
  • BigTuna1
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    11 years ago
    Well since you are a success full KFC manager I suppose you could do dis
  • mikeya02
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    11 years ago
    ^^^^Funny!....thus explaining why one would own a big bucks-making gay strip club.
  • Club_Goer_Seattle
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    11 years ago
    The last time this subject came up, Farmerart chimed in with a very good response. If he doesn't respond this time, I suggest you PM him for his advice.
  • SlickSpic
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    11 years ago
    @LMN-Old school way to make money is simple. Apartments+Quarter Car Wash+Laundromat+Bodega=$$$$
  • jester214
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    11 years ago
    Constant battles with government over zoning and regulations. Frequent contact with law enforcement. Dealing with highly unsavory employees, and I don't just mean dancers. Criminal elements in some areas would certainly be a threat. Easier ways to make money.
  • Dougster
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    11 years ago
    Best to PM txtittyfan first and get his financial advice regarding the matter.
  • BigTuna1
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    11 years ago
    Lol^^^
  • motorhead
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    11 years ago
    You'll be sitting on a beach, earning 20 percent


    Good luck
  • mmdv26
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    11 years ago
    The owners of smaller local clubs can be quite unsavory. Often involved in other "cash basis" income ventures, many are on local LE's "watch" list for a variety of other activities. Not everyone is suited to be business partners with these guys.
  • steve229
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    11 years ago
    Buy a share of RICK, then when dancers ask you what you do, you can say "I'm part owner of a chain of strip clubs"
  • Stripmonger1
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    11 years ago
    Have mused over this as well. I don't think I would want to bother. For all the reasons given it is a business model given over to more than a few troubling issues.

    Even if you get past the unsavory, there is always the communities who won't want you there regardless of where there is. If they don't mind then it is probably an area you would 'prefer' not to be in much.

    Keeping people coming is an issue. We all get bored of the same faces but like pretty. Some are in it for extras and extras are trouble for the owners in general. Many places I go to have spotty talent at best anymore. The best of the best are going to the money spots. Why would they go elsewhere unless it is relatively close to them or they are lazy.

    I don't know what to say about the gay clubs. I don't invest in anything I don't have at least some knowledge about.
  • Cheo_D
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    11 years ago
    steve229 does bring up a bit of a point -- Rick's stock has not been exactly stellar, and that suggests it's not a booming market. Bar/Club type businesses in general (nevermind "strip-") are highly volatile ventures, lots of risk, highly dependent on location and on fickle word-of-mouth, where the well established has a huge advantage over the startup, and the contrast between upmarket and downmarket can be extreme. Then you add the pitfalls of an adult business that others have mentioned before (oh, BTW, remember the Immigration office, too...).

    As to the comment about the gay clubs, it IS a particular niche with its own characteristics, but the business issues are always there.
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