How Big is New York Nightlife? Part II

By Gamal Hennessy

Last night I described the size and scope of nightlife venues and what they do to directly stimulate the economy. Today we’ll look at the other side of the equation and look at the economic activity of patrons in New York clubs.

Patron Population

All the venues and operators are useless without someone to actually serve. The 2004 Impact Study concluded that the attendance in New York clubs is more than 65,000,000 entries per year. Keep in mind that ‘entries’ is not a direct measure of the number of people who patronize nightlife on an annual basis, since club hopping and bar crawling could take one person to several venues in a night. A tourist might hit a club on her vacation in New York. A nightlife native might visit 50 or 60 venues in a year. Although total entries do not translate directly into 65,000,000 patrons, it is more than three times the amount of attendance at all 8 New York sports teams combined. 64% of nightlife patrons live within the five boroughs with each New York native visiting an average of 2.14 clubs per night out. The other 36% of all nightlife patrons came into the city from out of town and they visit an average of 2 venues per stay.

Cash Flow

Pre-Club Activity: Patrons don’t just magically appear on the dance floor at night. There are many activities that they engage in and spend money on before the night begins. The Study found that each native spent an average of $67 per person on these ‘pre-club’ activities including purchasing clothing, dining out and other activities. In addition, 82% of patrons used some form of transportation to get to the venue, for another $15 per person. So in total, each New York resident spent about $80 before she even walks inside the club. Tourist spending at non nightlife venues was even higher than resident spending. 86% of tourists people engaged in some other activity when they went to a club including dinner shopping, but also including hotels, theaters and sightseeing for an average of $90 per person. The out of town group also spent an average of $110 to get to and from the city and the venues they decided to visit, bringing their per person spending total to almost $200.

Liquor Purchases: The Study and the Zagat guide don’t estimate how much patrons spend when they are actually in a venue, but we can develop an educated guess. In our estimate, we’re going to assume that a person goes into a bar or club and buys four drinks; two for himself and two for the person he is with. I’m assuming a social unit of two, even though larger groups are just as common in clubs. I’m also assuming basic manners here, which means people not going Dutch. This might be overly optimistic in New York City, but in my experience New Yorkers can be very generous with alcohol, especially if they’ve already had a drink or two.

To keep things simple, I’m not including cover fees, coat check fees or bottle service, which would raise the numbers exponentially Let’s say each drink is $10. This is an average between the $5 beer and the $15 martini. That means in every club this guy goes into, our theoretical patron spends a total of $40. Let’s project that out to the total group. If there are 65,000,000 entries per year and only half of them pay for drinks then that’s 32,500,000 “drink entries” per year. If each drink entry is worth $40, then the estimated spending by nightlife patrons in clubs is 1.3 billion dollars.

Effect on the City

The amount of jobs, patronage and spending in nightlife might seem abstract until you put it in context. To place the numbers in perspective, we can look at the local film industry. According to the Mayor’s Office for Film, Theater and Broadcasting, local TV and movie production generates $5 billion dollars in economic activity for the city. In comparison, nightlife generates twice the revenue. The film industry has a government office to support and promote it. Nightlife has no such office despite repeated calls from operators to create it. If and when the city puts its full support behind the nightlife industry the benefit to the city could rise exponentially.

Have fun.
Gamal

How Big is New York Nightlife?

By Gamal Hennessy

There is a movement building to transform millions of nightlife patrons into a political force. As organizations like the Nightlife Preservation Community begin to gain momentum, it makes sense to look at what nightlife brings to the New York economy in hard numbers. When you look at the number of jobs, the number of patrons, the amounts the clubs spend and the amounts the patrons spend you begin to see how vital nightlife is to the financial health of the city.

Where the numbers come from
The New York Nightlife Association (NYNA) is an organization that represents the nightlife industry in New York. The NYNA commissioned a study in 1998 and again in 2004 called “The $9 Billion Dollar Impact of the Nightlife Industry on New York City”. Two weeks ago, Zagat released its 2009-2010 New York nightlife Guide with an updated analysis of the club industry. The numbers in this article are based on these two studies and my own calculations. The numbers coming out of the study have been verified, but since I can hardly add, my calculations are suspect at best.

Venues and Operators
According to Zagat, New York City currently has more than 1,300 nightlife venues, including 100 new venues added in the past year. This finding is supported by our own Trends Report that has continued to track new venues opening almost every week in spite of the economy. While there is no mention of how many venues were lost in 2008, the number of new venues is remarkable considering the economy and the stiff competition for drinking dollars.

Each venue needs several different people on hand to service and entertain customers on a nightly basis. The employees included management, security, bartenders, bar backs, dancers, waitresses, sound and light technicians and food service people such as cooks and chefs. It did not cover people who worked in the club, but were not direct employees of the venue, like musicians, DJ’s and promoters. According to the Impact Study, each bar has an average of 17 people on staff and each nightclub having approximately 38 people working there for an average of 27 operators per venue. That means that the total number of operators currently hovers around 35,000 people. The secondary group of natives who work in the club but do not work for the club is also considerable. Based on the study, nightlife generates 8,600 more local jobs as a direct result of its activities. This means that nightlife employs almost 44,000 people locally.

Spending by Operators

Wages: There are three major costs that operators pay for to keep their businesses running; wages, operational costs and taxes. Employees on the payroll of venues earn approximately $531,000,000 in wages and salaries every year. Freelance operators pull in more than $320,000,000 dollars per year. I can tell you from personal experience that the distribution of these funds varies wildly. If an unknown DJ spins at a club, she might get free drinks. If I DJ at a club, I might get $250 for a night. If a superstar DJ spins for a night, he could get several thousand dollars. While the distribution of these funds fluctuates there is still more than $850,000,000 in wages being generated by this industry, with a majority of those funds getting pumped back into the local economy.

Operational Costs: A bar or club has to purchase a significant amount of goods and services in order to offer its service to the public. While liquor and food are obvious examples, venues also have to purchase capital improvements to their spaces, furniture, cleaning and sanitation, electricity, climate control, accounting, legal advice, advertising, marketing, permits, music licensing fees and financial services. According to the Impact Study, nightlife spends more than $755,000 million dollars worth of goods and services in the city every year.

Taxes: Nightlife venues have to pay business taxes, sales and use taxes and in certain cases real estate taxes to stay in operation. The employees have to pay income taxes on the wages that they have earned (although I believe some payments are made on a cash basis to avoid taxation). The Impact Study estimates that nightlife pays the almost $104,000,000 million dollars a year in taxes to New York City and another $46,000,000 million dollars to New York State.

Part II of this study will be available tomorrow…

Have fun.
Gamal

New Political Group Forms to Enhance New York Nightlife

By Gamal Hennessy

Unless you are having a heated political discussion over beers, nightlife and politics don’t usually mix. Think about it, what does politics have to do with grabbing a drink with your friends, chatting up a girl for her phone number and dancing like no one is watching? Why not sit back, have a good time, and leave politics for the politicians?

That isn’t a good idea because if we don’t see nightlife as a political issue, we don’t have a voice. Various groups including community boards, law enforcement agencies, and real estate developers weigh in on what they want in relation to nightlife. The only major group that does not have a seat at the table to push its agenda is us. Patrons do not have an organization that directly represents their needs or even defines what those needs are.

A group of nightlife advocates are taking steps to improve this situation by creating the Nightlife Preservation Committee (NPC). Utilizing their ability to reach voters, their substantial connections in media and entertainment and the financial strength of their industry, the NPC plans to be a forum for nightlife that has not been seen in local politics before.

In the short term, the NPC plans to establish political influence in the New York City primaries by reaching out to almost 500,000 club goers who are also registered voters. That voting block could make or break the career of an aspiring politician, since local primaries are often decided by only a few thousand votes. At the same time, the NPC want to act as a bridge, connecting nightlife patrons to the local community, law enforcement, health agencies and other groups that have not seen eye to eye in the past. In the long term the NPC plans to represent the interests of the nightlife community as the issues and concerns about nightlife evolve.

The members of the NPC were kind enough to let me sit down with them as they planned their inaugural event, which is scheduled for June 22nd at M2. I met with Ariel Palitz (Sutra), Steven Lewis (Good Night Mr. Lewis), David Rabin (the New York Nightlife Association), Paul Seres (Sol), Morgan McLean (Rebel) and Paul Insalaco (BF9 Media). I posed several questions to the group to get a better idea of how they planned to connect nightlife and politics.

NYN: What are the long term goals of the NPC?
David Rabin: “In the broadest sense, we want to have an impact on state and local politics as they relate to the nightlife industry.”

Steven Lewis: “We want to revive the concept that New York is the City That Never Sleeps in the same way that Vegas embraced the concept of What Happens in Vegas Stays in Vegas. We want to spotlight the link between the prosperity of the city and the prosperity of our industry in the same way that the two concepts are connected in Vegas and Miami.”

Are you planning to use the NPC as a pro-nightlife organization to counter anti-nightlife groups within NYC?
Ariel Palitz: “We aren’t trying to polarize the discussion. We don’t want one group of people to automatically vote against any new club. We also don’t want anyone to fight for every venue as a knee jerk reaction. Our goal is to have each venue and each issue judged on its own merits.”

Paul Seres: We are trying to create a more balanced discussion, rather than increase the level of conflict between nightlife and the community. Most of us serve on community boards, so we know there are a lot of things that need to be considered with each club and each operator.

What public relations challenges does the NPC face?
Morgan McLean: “The media paints the entire industry with one broad brush. If one of us is accused of something, then all of us are assumed to be guilty, but an entire industry should not be defined by a few bad operators.”

Rabin: “When someone gets robbed inside a bodega, the cops don’t make the bodega liable. If a fight breaks out in a pizzeria and someone gets hurt, the pizzeria isn’t blamed. In the current environment if those same incidents happen in a club, then it’s the club’s fault. It’s the entire industry’s fault.”

Lewis: “We need to change the way we are perceived. Nightlife brings jobs and taxes and tourism and life to the city. We generate twice the revenue of film and television in New York. Our annual attendance is more than every major sports team and Broadway combined. We want to work with the city and the community boards to continue to do that and more.”

Morgan: “We can’t build our individual businesses or enhance nightlife in general because we spend so much time trying to defend and justify our existence.”

How is the NPC different from NYNA? Both groups are run by operators. Both groups support and advocate local nightlife? Why is a separate group necessary?

Seres: The NYNA is a trade association of nightlife owners. The NPC is a conduit of information for nightlife patrons. It is designed to mobilize people who are interested in the political and policy aspects of nightlife in a manner that is similar to a political action committee.

The NPC will officially kick off on June 22nd. What happens on June 23rd?
Seres: We plan to launch a website on the same day as the initial event and use that as a way to get information out to our people on an ongoing basis. We’d also like to have a series of meetings and events where candidates running for office can meet patrons who are interested in protecting nightlife. Many people never get to meet or talk to the people that they vote for. The NPC will give them a platform to express how important nightlife is to their entire life.

Have fun.
Gamal

The World's Loudest Cigarette: Six Years of the Smoking Ban

Six years ago this week, a smoking ban was imposed on bars, restaurants and other venues in New York City. While the atmosphere inside bars has improved and there are studies that suggest that there has been a significant improvement in the health of nightlife operators and patrons, there have also been secondary effects that threaten the health of the nightlife industry in general. The city has unintentionally (or perhaps unintentionally) created a situation that puts clubs at odds with local residents and ultimately threatens liquor licenses.

History

Before the election of Michael Bloomberg as mayor of New York City, bars and clubs were bastions of smoking. Federal studies found that 61% of heavy alcohol users also smoked, often performing both acts simultaneously. The image entering a smoky bar and approaching a sexual interest by asking for a light were common in many venues in the city. Anyone who went into or worked in a bar accepted the concept that smokers would be there and that they would be able to smell the smoke on their clothes and in their hair long after they left the venue, whether they smoked or not. Back when the world was young and I worked in Webster Hall, I had to sneak outside several times a night for the chance to breathe fresh air. Cigarette smoke triggers my asthma, so for me working in the basement was like working in a burning building. It wasn’t the smartest thing I ever did, but a

hustler does what he has to do, especially when he’s starting out.

In 2002 after Bloomberg became mayor, one of the first things he pushed for was a ban on smoking in restaurants, bars and clubs. The debate leading up to the passage of the law was hotly contested on both sides. Groups that advocated the ban claimed that operators inside the clubs were the most vulnerable to the dangers of second hand smoke because they were exposed to it several hours a night for several nights per week. They claimed a ban would both improve the long term health of operators and improve nightlife business because it would attract people who didn’t smoke into the environment to spend money. Groups that came out against the ban did not deny the health benefits, but they did argue that there would be economic and social effects that the law did not take into account. They also claimed that there would be increased friction from the community because of the noise generated from patrons standing outside to smoke from 5 PM to 4 AM.

The Sound of Smoking

Some people think that a few people standing outside a venue will not substantially increase the level of street noise. But that concept only considers the smokers themselves. They don’t see that smokers, especially female smokers, provide a powerful incentive for groups of fanatics to hang out in front of a club, especially the ones who didn’t get into or got thrown out. In a twisted effort to get noticed and prove their superiority, these individuals will shout, get into fights, honk their horns if they are in their cars, or try to talk to girls from their cars and back up traffic behind them which causes other cars to blow their horns. This sad mating ritual cacophony will die down when the girls finish smoking and go back inside, but it will begin again when the next group of girls comes out of the club to take their place.

The relationship between street noise and smoking outside should not have come as a surprise to anyone involved in the development of the smoking ban since the NYNA informed city that the smoking ban would lead to noise complaints. But when operators requested the ability to hire Paid Detail officers to deal with the inevitable noise the result was the worst of all options. The smoking ban was put in place and the request for Paid Detail was rejected, allowing the smoking ban to become a major contributor of street noise. When street noise increases, 311 complaints from local residents increase. When complaints increase, local community boards can use those complaints to have a venue’s liquor license revoked. Without a liquor license, a bar or a club can’t compete in the market and is forced to close. There is a direct relationship between the smoking ban and the increase in noise complaints against clubs. As the ban enters its 6th year operators need to find a way to keep patrons healthy and stay opened.

Coping Strategies

Different venues use different tactics to deal with the ban. Any venue that has been built or renovated since 2003 could factor the law into their design. The ones that could afford it added heated courtyard lounges like Cielo, rooftop access like Above Allen or fire escape access like APT to give smokers access to the open air without putting them out on the street. Venues that don’t have that option rope off areas in front of the venue to separate the smokers who already made it past the velvet rope from the throngs still trying to get inside.

There are also growing instances of venues that do not rope off areas out front, or create special sections for them. Some operators have come to the conclusion openly or privately that it is easier and more cost effective to simply break the law. Smoking in clubs reported to be on the rise in New York City, either because enforcement has dropped off, or because the fines are low enough that paying them costs less than complying with the law or getting noise complaints. While this minority of operators might not openly reject the law, they have come to the conclusion that the cost of paying the fine is less than the cost of erecting smoking areas or subjecting their liquor licenses to revocation based on noise complaints from smokers standing outside. Some solutions have worked better than others, but one thing the clubs won’t do is discourage smoking by their clientele since by some operator estimates, smokers account for 40% of patrons.

A More Viable Solution

There is an alternative that protects the health of patrons and operators, keeps noise levels down outside of venues and allows patrons to smoke all at the same time. There are air filtration systems on the market that have been approved by the Department of Health and are currently used by infectious disease wards in hospitals to clean the air. These systems reportedly are the size of a humidifier and one of them can keep 1,250 square feet of interior air cleaner than the air in Central Park, even if 60% of the people are smoking inside. The NYNA proposed that if a venue was primarily a bar, lounge or club and not a restaurant then they could have one filter installed for every 1,250 square feet of interior space and become exempt from the ban. This request was not included in the final version of the law.

The best options available for the industry are to continue to lobby officials on the state or and local level that patrons can smoke inside without health risks, through the use of technology like filtration units. They can also try and work with local community leaders and law enforcement to gain the power to control or reduce noise outside the venues through Paid Detail. Finally, they could work to sever the links between street noise and liquor licenses so that loud patrons don’t lead to closed venues. Whatever tactic operators decide to use they need to insure that the smoking ban isn’t harmful to nightlife health.

Have fun.
Gamal

Are Police the New Health Inspectors or Tax Collectors?

By Gamal Hennessy

Imagine this. You’re sitting in your favorite bar nursing a drink and wondering how you’re going to convince the waitress to give you her phone number. Without warning three cops walk in, push behind the bar and start poking around with their flashlights, making everyone in the room very nervous. As you gather up your belongings and discreetly make your way towards the door, would you assume that this was a raid? Would you guess that the cops were looking for drugs, guns or child pornography? Would you believe they were looking for fruit flies?

Fruit flies are drawn to alcoholic beverages and bar owners are required by the state law to keep them out of liquor bottles as a matter of public health. As part of the routine inspections by the Department of Health (DOH) bars are inspected for fruit flies and any venue that has fruit flies on or in the bottles is subject to a fine that could run between $700 and $1,000 per infested bottle. This is a normal part of the nightlife business and isn’t really a cause of concern among operators. The problem arises in the way the law has recently been enforced. Even if you are a nightlife native who frequents various venues, you have probably never seen a DOH inspection taking place. That’s because inspectors keep a relatively low profile while conducting their business. Patrons usually have no idea what is going on and they don’t have to. But there have been reports of layoffs at the DOH, which could mean fewer inspectors. But inspections still need to be conducted, especially since every violation can lead to fines that cash strapped city and state governments are desperately looking for. So somehow the DOH has been replaced with the NYPD who is anything but low profile when they come into the bar.

One operator commented on the climate that the NYPD creates; “By sending a uniformed officers from the NYPD behind your bar with a flashlight looking for fruit flies and whatever else they can find at the height of your business hours creates a stressful situation for you and your customers. It looks like a crime was committed in your place and they are looking for evidence. It gets people talking about your establishment in ways you don't want.”

Bar and lounge owners in various parts of the city have described this scenario happening in their bars with increasing frequency. Some operators think that the NYPD has been given a mandate to perform random inspections as a way to “find” violations and provide the city and the state with much needed revenue. Various operators have voiced opinions about the situation: “What they are thinking is that they are going to get funds for a broke state and city no matter what the consequences. No thought is given to the outcome except that those cops better come back with some violations. With cops conducting their random inspections, we are at the whim of whoever is giving these cops the orders to do these. It is much more invasive and detrimental to our businesses. “I don't think this has anything to with revenge against a particular venue. All bars are suffering this treatment. This has more to do with the city's need to collect more revenue in the shape of fines and the fact that they've laid off a number of health inspectors.”

So instead of increasing state revenue by working with the nightlife industry, local government is trying to increase state revenue by intimidating and attacking it, using the police as its instrument. We have pointed out in previous articles that ending the backlog in liquor license applications and increasing the number of venues would actually increase state revenue significantly. And as dangerous as fruit flies are to public health, the police are probably better utilized deterring and preventing crime outside of venues instead of poking around behind the bar looking for bugs. We know that the state wants to use liquor consumption as cash cow and nightlife is an economic resource that the city can use for its benefit, but only if it takes more of a cooperative stance instead of being antagonistic.

Unfortunately, some operators don’t see things getting better because they don't feel the lobbying efforts are strong enough to support their position. “With all due respect to our lobbying groups, I really don't think they have the stomach for this kind of fight. We are just going to have to put up with this intrusive behavior by our government and keep our bars as clean as possible.”

So if you see a couple of cops climb behind your favorite bar, it might not be a raid. It might just be an abusive health inspection.

Have fun.

Gamal

Where is New York’s Nightlife District?

By Gamal Hennessy

Many major cities have designated areas where nightlife concentrates. Vegas has the Strip. New Orleans has Bourbon Street. South Beach has Ocean Drive. London has Leicester Square. New York has pockets of venues scattered all over the city, but what if there was a central area that was easy to get to, isolated from local residents, and big enough to house the next generation of mega clubs? Could something like that work here? Would we want it to?

Diane Vacca of Chelsea Now reported last week that members of community boards 4 and 5 in Midtown are in the initial stages of a plan that would designate areas in the Garment District (between 34th and 41st Streets and 6th and 9th Avenues) as a manufacturing zone. By using a non residential area for larger nightclubs like the venues currently in West Chelsea, the boards hope to give the residents of the quality of life they are looking for while providing space for a vital part of New York’s culture and economy.

Clubs have had conflict in recent years with local residents, community boards and police where local residents complain that the club’s activities are detrimental to the neighborhood and club operators complaining that they don’t have the tools or authority to solve the problems and remain in business. The encroachment of residential buildings into traditional nightlife areas has exacerbated the problem, which probably had a lot to do with this proposal.

Creating an Ocean Drive in Midtown wouldn’t radically alter the geography of most of the cities venues. Local bars, live music venues, lounges, speakeasies, and wine bars would still flourish all over New York. But mega clubs like the historic Palladium, Roxy and the Limelight, recent venues like Crobar and Lotus and current clubs like Webster Hall and Home need more space, generate more street noise and cause more late night traffic congestion than the smaller venues. Creating an area for them could help isolate the inevitable issues that come up.

There are at least two issues with the current plan, both turn on economics. The first question is “How do mega clubs fit into the future of New York nightlife?” The desire for operators to sink money into a mega club might not be very strong. Real estate costs are still fairly high, even in a recession. Liquor licenses are still a time intensive process that can tie up an investment for up to a year. Operating costs might be prohibitive in this district if patrons are planning to hop from club to club like in New Orleans, but are unwilling to pay substantial covers five or six times in one night. And the ability to pack a mega club with patrons on a consistent basis might be challenging without a point of difference to set them apart from the club next door. Steven Lewis has noticed a dispersal of nightlife from a few large venues to many small ones. In that kind of environment, can a mega club survive?

The second issue has to do with the zoning of the area itself. Ms. Vacca reports that the city is unwilling at this point to rezone the area for a nightlife district. Altering their position may take some time. Even if they succeed, operators run the risk of sinking investment capital into properties in a nightlife district only to find that the area is rezoned for residential once they make the area trendy enough for residential developers. This pattern has played itself out in the Meatpacking District and West Chelsea. Vegas and South Beach have created nightlife zones and maintain that status. If a similar New York zone is going to exist, local government needs to have the same commitment to maintain it.

Neither of these obstacles is insurmountable. A specific nightlife zone could spark growth in nightlife similar to what we saw in the mid 1970’s with the rise of Studio 54. Fresh capital and new ideas like a nightlife zone could be the start of a new age in the nightlife industry.

Have fun.
Gamal

Sin Taxes, Playing Together and Notorious Crimes

Nightlife News for January 21st, 2009

By Gamal Hennessy

Time for a New Sin Tax
David Kesmodel of the Wall Street Journal reported on the growing trend of lawmakers across the country to increase taxes on liquor to lower state budget deficits. While sin taxes have been used in the past for governments to get through lean economic times, New York might want to couple that tax increase with an increase in liquor licenses so that more jobs and more taxes are created at the same time.

Playing Well Together
Heather Murray of Chelsea Now found a positive story in the residents vs. nightlife situation. Cafeteria in Chelsea has been working with neighbors to install sound proof windows, police the area around the building for noise and amateur behavior and early waste removal. The situation offers good ideas to operators trying to peacefully coexist with people living near their venues.

Notorious Crimes Taint Movie Opening
The Gothamist reported that four people were stabbed at a party thrown to celebrate the hip hop film Notorious. In a separate incident, the Times reported that a teenage girl was shot and killed at a teen only party in the same weekend. If the film was supposed to be a cautionary tale about the connection between hip hop, crime and violence the message didn’t get through to every one.

What do you think? Should we support more liquor taxes? What else can venues do to work with communities? What will it take to separate hip hop from violence? Add a comment and let us know.

Have fun.
Gamal

Squadron Watch, SLA Inspectors and Smokeasies

Nightlife News for January 13th, 2009

By Gamal Hennessy

Is Squadron in a position to carry out his plans?
Roy Edroso of the Village Voice reports that new Democratic State Senator Daniel Squadron has been chosen to head the cites committee of the New York State Senate. Given his anti-nightlife position during the election, the question is will the new position but Mr. Squadron is a position to carry out his Nightlife Control Plan?

Club security guard sentenced for kidnapping charge
Darryl Littlejohn got 25 years for stuffing Shanai Woodward into a van. He still claims he’s innocent and that his trial was unfair because his name was also linked to the Imette St. Guillen kidnapping, rape and murder. Newsday.com didn’t specify when the St. Guillen case will be tried, but Littlejohn will continue to be a bad example of security the industry will have to deal with

Does the SLA need more inspectors?
A TV station in New York might have found the reason why liquor licenses are so hard to get. According to a spokesman for the SLA, there are only 21 SLA examiners in the whole state, and they process over 6,500 applications per year. But if New York needs to create jobs in a recession, and liquor licenses can create more jobs, why not hire more inspectors?

Watch out for the DOH before you light up
Grub Street has confirmed that the Department of Health has been conducting more raids and handing out more fines for venues that violate the smoking ban. The raids might be in response to more venues turning a blind eye to smoking in 2008, so smoking might become a contentious nightlife issue again six years into the ban.

What do you think? Should we worry about Squadron? What will it take to get more SLA inspectors? Will the DOH crackdown lead to club closings? Add a comment and let us know.

Have fun.
Gamal

Bottle Service Debates, Club Priests and the Best of 2008

Nightlife News for January 5th, 2009

By Gamal Hennessy

Bottle Service isn’t dead. Or is it?
David Hauslaib asserts that the bottle service trend is alive and well, although his argument using the Eldridge is less than compelling. While Scott Solish of the New York Observer provides anecdotal evidence that that economic trend is suffering and may not come back.

If Your Bar Moves, Will You Move With It?
You’ve owned a spot for years. You have a good set of loyal regulars. The economy forces you to change locations in an attempt to save money. Will your loyal regulars be there for your grand re-opening? Glenn Collins of the New York Times isn’t so sure…

When Generosity is Clearly a Sin
Did you hear the one about the priest who holds down the VIP? Well, Sean Evans and Tracy Connor of the Daily News reported on Father Greg Malia living the high life in New York’s most expensive clubs. Unfortunately Fox News followed up that story with news that the church rewarded his nightlife attraction by firing him.

The Best of 2008
Good Night Mr. Lewis author Steven Lewis highlights his picks for best club, best DJ, best party, best blog and best trend in nightlife. Unfortunately New York Nights wasn’t picked for best blog, but we’re hoping to do better next year.

What do you think? Is bottle service on the way out? Will patrons follow a bar? What was your favorite spot of 2008? Add a comment and let us know.

Have fun.
Gamal

New York Nights: The Year in Review

Over the past year, New York Nights has offered a unique perspective on the issues that affect the culture and business of nightlife. I’m looking forward to offering you more insight and information in 2009 but if you’ve missed any of our weekly features, don’t worry. I’ve provided links to all of them below.

Let me know what you think; what you want to know more about, where you think nightlife is going in the New Year and what you enjoy about NYN. Thank you for all your support and have a great year.

The New York Nights Weekly Recap for March 28, 2008
The New York Nights Weekly Recap for April 4, 2008
The New York Nights Poll: How has the Smoking Ban Affected You?
The New York Nights Weekly Recap for April 11, 2008
The New York Nights Weekly Recap for April 18, 2008
Last Call: A New York Nights Special Report for April 25, 2008
The NYN Weekly Recap for May 2, 2008
The NYN Weekly Recap for May 9, 2008
The New York Nights Insider for May 23, 2008
The New York Nights Insider for May 30, 2008
The New York Nights Insider for June 6, 2008
The New York Nights Insider for June 13, 2008
The New York Nights Insider for June 20, 2008
New York Nights Insider: The Pride Issue
The New York Nights Insider: The Independence Issue
The New York Nights Insider: The Alternative Venue Issue
New York Nights Insider: The Turning Point Issue
New York Nights Insider: The Mid Summer Issue
New York Nights Insider: The Liquor and Sex Issue
NYN Insider: The Down Market Issue
New York Nights Insider: The Image Issue
The NYN Insider: The Common Sense Issue
The New York Nights Insider: The Outside Influence Issue
New York Nights Insider: The End of Summer Issue
NYN Insider: The Down Side Issue \
NYN Insider: The Economy Issue
NYN Insider: The Sub Culture Issue
NYN Insider: The Controversy Issue
NYN Insider: The Woman’ Issue
NYN Insider: The Food and Wine Issue
NYN Insider: The Future Issue
NYN Insider: The Experience Issue (with Election Update!)
NYN Insider: The Crime Issue
NYN Insider: The Election Holiday Issue
NYN Insider: The Music and Fashion Issue
NYN Insider: The Culture Issue
NYN Insider: The Perception Issue

Have fun
Gamal

One Mic Nite: The Art of Giving Back

One of the major themes during the holiday season is the spirit of giving. There is one show in Alphabet City that is dedicated to giving back to the artistic community with money and inspiration. New York Nights is proud to present One Mic Night.

Vital Information

Websites:
www.MarcosLuis.com
www.ThirstNyc.com

Latest Project: is an Evening of One-Act plays/Comedies & live performance of the Soulfolk Experience (Band) followed by an Acoustic-style Open Mic

Next New York Performance: Monday 12.08.08 7:00PM

Hometown: Chicago,IL

1) NYN: Explain the concept and inspiration behind One Mic Nite.

ML: Our community's desire for an elegant and pleasant social environment sparked a need for an alternative to the regular social gatherings and created a point where artists,engaged in music, theatre, spoken word, film,and other genres of art could interact. One Mic Nite was formed as an artistic industry evening, and became committed to giving back to the community with various fund raisers for City & National Organizations through its performances.

2) NYN: How did you move from being in front of the camera in commercials and film to behind the camera and hosting the show?

ML: When the show began, it was a small intimate evening of acoustic music with one singer, Maritri Garrett, and one guitar when I was a manager in a small chic West Village restaurant . As the nite continued each week, we invited our artist friends to network, listen and eventually participate. As the weeks progressed, the crowd grew and as the manager I was forced to re-locate the show to a bigger more accommodating venue. That move allowed me to incorporate more artists.

3) NYN: How did you feel the first night the show went on?

ML: The first night I hosted the show I was nervous, and happy. Nervous because I understood the potential of the show and happy that it had grown to such a beautiful thing. It was also an opportunity for me to step out and return to hosting a weekly show, which I hadn't done in years.

4) What have you learned about New York nightlife from hosting this show?

ML: NYC nightlife is exciting. It gives you a chance to meet and experience some of the most talented people in the world. It allows you an opportunity to be a part of a pop culture that many people can only experience from a distance. When you are here, you can connect to the audience & admirers in a way that is very personal, in essence you can become the personality of the event.

5) NYN: How did you meet the artists for One Mic Nite? If a new artist wanted to perform, what would they need to do?

ML: I have hear all the artists in one way or another. I review their webpages, attend their other shows and I'm always scouting for talent to perform. Our acts range from Grammy Award Winning Artist to polished amateurs, signed and unsigned. New artists & talent can submit website links, via Email to OneMicNite@Gmail.com for consideration.

6) NYN: What is your ultimate goal for One Mic Nite?

ML: The ultimate goal of One Mic Nite is to provide different art to the community on a regular and ongoing basis. It is important to continue to explore and expose the various genres of art to uplift, and help to stimulate more creativity. I want to use art as a means to give back to the community spiritually and financially, where artists participate in fundraisers for other organizations in need. Because art is based on interpretation, I hope each person that comes, leaves with a personal experience and hopefully can return to share a completely different experience the next time.

Please Visit for more Info on Events & Showcases.. http://www.thirstnyc.com/

Check clips of past Shows: www.YouTube.com/MarcAllen8

Have fun.
Gamal

Did New York Nightlife Lose the Election?

By Gamal Hennessy

Clubs were full last Tuesday night celebrating the historic victory of this country’s first black president and began counting down the final days of our worst president. While the tears and champagne were flowing, few people realized that a new player is also coming to Brooklyn, one with a distinct anti-nightlife platform and powerful supporters. Did the election we celebrated give rise to a new enemy to nightlife?

On Monday I got an email from a nightlife operator with a link to Daniel Squadron’s Nightlife Control Plan. I didn’t know who Mr. Squadron was, but I read his plan and I didn’t like what he had to say. No one involved in nightlife, who has seen the rise in power of the community boards, or understands the arbitrary way some boards operate would take the position that CB’s need to have more power without accountability or capriciously decide that any area has “too many bars” and essentially cripple on of the few industries that can continue to bring revenue into the city during an economic downturn. I came to the conclusion that I didn’t support Mr. Squadron. I also quickly understood that my support didn’t matter all that much. I didn’t live in his district and I only found out about him a day before the election. There was no time to get the word out and mobilize support against his election.

So spent the next few days following Sun Tzu’s advice and started to find out more about the new state senator.

It appears that Daniel Squadron is the son of influential attorney Howard Squadron and the former aide to U.S. Senator Charles Schumer. His campaign against the 30 year incumbent Martin Connor received endorsements both from political heavyweights like Schumer and Mayor Bloomberg and from local community groups seeking change. The following is a comment taken from The Brooklyn Paper

Daniel Squadron has the endorsement of almost all the Williamsburg leaders and newspapers this week. Folks, we need fresh blood. The coming years will see budget cuts because of lower government incomes. We need young fresh faces that have no old liabilities to fight for our rights...Lets all come out en mass and vote Daniel Squadron

It also appears that Mr. Squadron has links to nightlife that pre-date his Nightlife Control Plan. Based on his account given in July of this year, he once owned a nightlife establishment in the city. This should give him an idea of the pressures and difficulties in owning a New York bar. It should also help him understand the perspective on the community boards and police in relation to the clubs.

But if he does understand what nightlife operators are going through, where does the Nightlife Control Plan come from? Why is it worded to help the community boards restrain bars, but doesn’t openly mention actual standards of proof for them? Does his plan offer the venues protection and support, recognize them for the cultural and financial impact they have on the city? Will his plan build on the strides made by police and operators to keep the city safe or will it drive a deeper wedge between the two sides?

Since Daniel Squadron is the elected senator in Lower Manhattan and he does have substantial political allies, it is not inconceivable that his Nightlife Control Plan will evolve into a law. We can hope that the state senate understands the benefits of New York clubs and reject overly stringent controls. We can hope that lobbyist from the nightlife industry deliver the message that nightlife needs support as well as control. And all of us, especially me, can keep a closer eye on the people who claim to speak for our best interests.

Have fun.
Gamal

Beyond the Vodka Redbull

By Gamal Hennessy

The New York nightlife industry is extremely competitive. There are more than 1,000 places for people to choose from and new spots open up every week. Venues are constantly looking for ways to set themselves apart so they don’t lose business. While they are not universal, specialty drinks are becoming a tool in this arsenal in the same way that music, décor and exclusivity can be used to offer people a different type of experience. This is creating an environment where the visibility of the bartender is on the rise.

The economics of drinking
Recent history has not favored signature cocktails. In the era of bottle service bartenders were little more than unseen warehouse attendants, fetching bottles and filling carafes so shapely hostesses could deliver the generic cranberry, orange juice and coke with the marked up liquor. But that situation is changing. The soft economy has put a dent in the bottle service concept and it is unclear if it will survive the downturn. If bottle service is going the way of Merrill Lynch, then clubs and lounges will need new tricks to get people in the door.

Many new venues are opening with a unique menu of signature drinks to break away from the pack. In this system, the bartender becomes analogous to the DJ blending fresh juices, berries and flavored liquor in the same way a DJ blends songs and beats to create something different. Similarity between drinks at different bars is probably inevitable in the same way different DJ’s in the same genre can all sound the same after a while but the opportunity for a distinctive reputation exists with signature drinks in a way that doesn’t exist with bottle service.

Signature drinks can also be a good source of revenue in a down economy. These new drinks normally go for $12-$20 each (while this is exorbitant outside of Manhattan, it doesn’t raise many eyebrows here) so a person who has three of these creations can easily be spending $50 without the tip. Add snacks into the mix and a night of cocktails for two can bring in almost as much money as a couple having dinner. While it won’t completely replace the revenue lost from bottles (it would take five people buying five $20 cocktails each to replace one $500 bottle of Grey Goose) it can soften the financial blow.

Winners and losers
Signature drinks offer something to customers, bartenders and to the club owners. It also signals a shift within the bartending market. No comprehensive study has been done, but anecdotal evidence suggests that some older bartenders who learned on the job over a period of many years are being replaced by younger, professionally trained, and often better looking “mixologists”. Can the older bartenders learn to make the new style drinks? Absolutely. But when presentation counts as much as the taste of the drink the younger bartender has a distinct advantage.

Keep in mind that there is a specific market for specialty drinks. They are primarily geared toward women who are willing to experiment. Guys aren’t usually interested in Asian pear martinis or chocolate cosmos, and there are women who will cling to their vodka red bull like a crack head to a pipe. But nightlife caters to women. Women will go where the drinks are. Men will go where the women are. Everyone will spend more money. Any thing that will bring more women through the door is worth a try. So more places will probably come up with their own specialty drinks…

The Beginning of the End for Bottle Service

By Gamal Hennessy

The state of the financial markets has a ripple effect on New York nightlife. The most immediate impact will probably be on the pervasive practice of bottle service. Certain clubs are already scaling back their bottle service promotions. While it might not disappear, bottle service won’t be able to survive as a widespread practice. How will the nightlife landscape change if the bottle goes the way of Lehman Brothers?

When you order bottle service, you’re basically paying for temporary prestige in a club. You and a few of your friends get to skip the line and sit at a table instead of standing. Your one (or more) bottles of liquor and mixers are served by an attractive waitress so you don’t have to fight for drinks at the bar. Your area is often defined by a velvet rope so you don’t have to mingle with commoners.

The cost of this prestige has no realistic relationship to the actual cost of the liquor. A $70-$80 bottle of Gray Goose can easily go for $500. When you buy bottle service, you’re sending the social message “I am a VIP. I can afford to be extravagant.” Club owners have profited from people’s need for prestige. One owner said that bottle service accounted for up to 70% of his bottom line revenue.

Bottle service has been a staple in nightlife for more than 10 years. It survived the bursting of the internet bubble and the war on terror. When the housing market began to soften, bottle service was still a widespread practice fueled by hedge fund managers, i-bankers, and corporate sponsored credit cards. The fall of several key financial houses in the past two months will probably dry up money available to FIRE workers (finance, insurance and real estate), who make up 20% of the nightlife patrons, so bottle service might not be able to withstand the current storm. It will be difficult for bottle service to survive if there the only people who can afford it are movie stars, drug kingpins and oil barons.

The backlash has already started taking shape. Prominent clubs like Prime are announcing a retreat from bottle service and a renewed commitment to ‘catering to the customer’. Prominent nightlife insiders are predicting that the overall club market will contract as poorly run clubs die off and well run spots adapt to the new environment. While the economics of bottle service compensate for the realities of operating costs, clubbers like me (who can’t justify the cost of bottle service) see a positive change for the better. The average club customer who couldn’t afford a bottle may no longer be treated like a second hand citizen. Clubs might become more about pleasure and less about posturing and prestige. History has shown that people continue to drink during bad economic times, so even the i-bankers will still belly up to the bar. They just won’t be able to separate themselves from the commoners.

Have fun.
Gamal

Smaller Clubs Could Cripple Nightlife

By Gamal Hennessy

The New York nightlife landscape has evolved. The former dominance of mega clubs has splintered into specific niche markets where micro communities can party in relative isolation. Many see this as a natural progression in entertainment, similar to what we see happening in music, TV and movies. But some within the industry feel that these niche markets can’t survive on their own and if New York nightlife is going to thrive again, we need more mega clubs.

It’s easy to make an analogy between the fragmentation of modern entertainment and nightlife. It used to be that we only had a handful of television stations to watch. Now we have 500 channels of cable television and sites like YouTube and Hulu. We once listened to radio or watched MTV to get our music. Now we can bypass radio completely with digital music, internet radio, and ipods. We used to have mega clubs like Palladium, Limelight and Crobar. Isn’t it natural for lounges and smaller clubs to develop in an attempt to cater to smaller markets?

Steven Lewis, an established authority on nightlife for the past several decades, disputed this line of thinking in one of his latest articles. According to Mr. Lewis, a mega club that caters to different crowds on different nights has the ability to fill the room every single night and by extension make more money. A smaller venue that only caters to a specific demographic group has a harder time during off nights. If it can only make money two or three nights out of the week, it might not be able to survive.

Mr. Lewis is clearly working from an informed perspective, but even if we need more mega clubs to enhance the quality of nightlife there are substantial hurdles in getting them. Real estate costs and the current financial turmoil might make it hard for developers to open profitable mega clubs in the short term. Anti nightlife community boards might also attempt to block larger clubs from opening by rejecting liquor license applications. Can clubs service diverse crowds on different nights without being large? Some spots like Sin Sin or Bar 13 try to do that now. Can large clubs emerge in New York’s financial and climate? Mansion and Marquee are still fixtures in the industry, in spite of what’s going on in the market. Are the niche venues the best alternative under the circumstances? Maybe the new Limelight will be the next evolutionary step in nightlife.

Have fun.
Gamal

Source: Good Night Mr. Lewis

US Liquor Consumption is Down…Are We Slacking Off?

By Gamal Hennessy

It appears that all the ads of bikini clad women sipping vodka, new brands infusing exotic fruits or caffeine (or both) into our drinks, and hip hop videos worshiping Courvoisier have been in vain. A new medical study has found that liquor consumption is down across the United States. Is this good for nightlife or are we becoming a bedroom community?

“Secular Trends in Alcohol Consumption” is the article that Dr. Yuqing Zhang has published in the August 2008 American Journal of Medicine. Dr. Zhang analyzed the liquor consumption of 8,000 Americans from 1948-2003. He has concluded that while hard liquor rates have remained constant, drinking rates of beer have decreased significantly and wine drinking has increased. He has also found that moderate drinking is more likely in individuals born later in the 20th century. There is also a major increase in the number of people who identify themselves as non drinkers. While Dr. Zhang’s findings show a decline in national consumption, other studies have shown that binge consumption in New York is even lower than the rest of the country.

This move towards a healthier relationship with alcohol comes at a time when medical research is finding benefits in the bottle. Recent studies have shown that moderate drinking reduces your chance of stroke and heart disease, can increase your levels of good cholesterol and reduce the chance of breast cancer in women. The health benefits, combined with its use as a social lubricant and relaxation tool raise the positive profile of drinking…as if you needed another reason to drink.

It is amazing that in a city of bottle service, open bars, and endless launch parties that studies show us drinking less than ever before. It might be hard to believe when you frequently see smashed lightweights being pushed into a cab by their friends. But maybe the drunks are just the ones we remember. The thousands of other people out every night drinking without getting drunk don’t leave a lasting image.

While there are some raging alcoholics in our city, the idea that nightlife is nothing but an army of drunks is clearly unfounded. We go out, we drink, we have a good time and we go home. We’re at work the next day. Sometimes we have a hangover, sometimes we come out with just a leanover but overall we can still function as the center of the universe. New Yorkers balance work and play and playing is often more fun with a cocktail. Remember that the next time someone tries to criticize your three cosmo a day habit.

Have fun.
Gamal

Source: Press Release

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