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Miami nightclub owners are struggling in wake of FTX and crypto downfall

20 pointsby swiper_luxover 2 years ago

1 comment

chrsstrmover 2 years ago
<i>operating partner at the club E11even, told the FT that the company has only brought in $10,000 in the past three months, after raking in more than $6 million last year </i><p>I&#x27;m calling BS on this statement. I worked for 10 years in hospitality and nightlife. $10,000 in revenue is an average Friday&#x2F;Saturday night for a popular 150 person capacity venue in a mid-tier city. I have no doubt the crypto money dried up, but let&#x27;s not feel bad for these people - the crypto spending was on top of their usual revenue, not a replacement. When you look at big spenders in the nightlife scene, these people are not buying tangible products that have an associated expense to the business (there&#x27;s still fixed costs but scaling revenue with this clientele doesn&#x27;t scale costs). Selling liquor (at a small mark-up) is not the same as selling a &quot;table&quot; which is nothing more than space inside the club for an exorbitant fee and the opportunity to purchase bottles of alcohol at 1200%+ mark-up. Clubs might thin out their staff a little in response to lower attendance, but they are not going belly up (unless there is some serious funny business in their treasury management).