Opening a Night Club

The Question

Looking for you help with market research on a new Night Club opening in…¹

Our Answer

The first part of your research should be spent on identifying the makeup of the population within 20-40kms of your location or a 30 minute drive.

Important information would include things such as:

• disposable income
• age distribution
• gender
• marital status
• ethnicity
• health statistics (relating to level of physical activity)

NOTE: Some or all of these pieces of information can be taken from census data. Save your money, go for proprietary information sources only after you are certain you have exhausted free or at least low-cost data.

The next part is very important. You need to identify and experience the competition. This should be an enjoyable qualitative exercise – just watch out for spewers. Take the opportunity to talk to bouncers, promoters, and people you find running up and down the streets in a half/fully-intoxicated daze and ask them about what clubs they’ve been going to and what they liked most about it. You can build your own basic demos just by looking at them and the people that are with them without even asking. In addition, you might meet people that can help you promote your club.

Now that you have a lay of the land, and a good understanding of where people go and why, it’s time to market it.

Whatever your overall vision for the club, here are a few pointers from what I’ve noticed within the clubbing industry (within Canada, EU, and US).

1. Promoters are your best friend. But they will have their own demographic that they market to or affiliate with. Identify it – know what you’re getting into when you take them on.
2. Ethnicity specific clubs do well in places where there is nothing there to fill the gap already. However, you have to make sure there’s enough of a market to support a strong business and cultural understanding goes a long way. In Toronto, there are many clubs that have been obviously successful catering to specific segments of the ethnic diaspora – but everyone knows it.
3. Resto by day Club by night – is a good use of daytime space and keeps people in your establishment for a long time.
4. Events, events, events, events
5. Did we mention events?

¹ Linkedin: Market Research and Definition