Is Building a Berghain in NY Possible?
Since I first found found out about the idea about members clubs, I've always wanted to build my own. I've read the SOHO house 10ks, and it's clear that this type of model is running on thin margins. Put simply, the appeal needs to be bigger. Then about 4 years ago I read about Berghain on a travel forum. If you don't know what Berghain is, google it. The protein is that it is the world's best club with a lean on techno.
My question: how feasible is to to plop a similar setup in Brooklyn or in a location similar to Casa Cipriani? Wouldn't necessarily be as large, but is this dream a possibility? obviously you would have to get some folks with pockets looking to invest into the hospitality space, but with a brand recognition and atmosphere that is known to be #1, why couldn't something similar takeoff in NY? Not a lack of interest. Weigh in if you think this is a dream that is possible/are in real estate.
The social club/nightclubs make for terrible businesses if your objective is to make money
1. Social clubs/nightclubs are inherently a winner-take-all market because time is valuable for people, so celebrities etc. will only spend time at the absolute best and most exclusive clubs. Yes, Berghain is wildly successful, but there's a reason there's only 1 Berghain--what makes you think you can replicate the world's most popular club
2. social clubs/nightclubs develop status through exclusivity, so this is a business whose competitive advantages erode as you scale--it's the reverse of economies of scale. If SOHO house wanted to double their locations then they'd lose a lot of exclusivity and wouldn't be able to command the same membership fees. Serious investors need scale because they want the ability to deploy more capital down the line if it become successful
3. Unless you have mad connections with A-list celebrities, you won't be able to establish the #1 nightclub in arguably the most competitive social club market in the world. Those top social clubs grow in popularity exponentially through social media, but it's nearly impossible to get the momentum rolling in the first place
4. It's hard to understand where your idea would fit in within the existing marketplace. There's no shortage of prestigious social/nightclubs in NYC
1) My ideal to replicate Berghain would be to quite literally replicate berghain. same setup (yes darkrooms), concrete interior. the works
2) This model would be a pay to play type. no membership. If it picked up traction, it would be popular like 11 or LIV.
3) Not trying to be the #1 nightclub like 1oak. Just need to be distinguished in debauchery and atmosphere. Totally different to Nomad or little sister. this would be about absolute party anarchy. Strict door to facilitate that
thoughts?
Basement is certainly trying to emulate it. It seems pretty difficult for any club to pull off, though, because when you let everyone in you get a weird mix of people but when you gatekeep too hard the dance floor will be too sparse and less fun.
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