Blog / May 10, 2022
How to Run a Successful Nightclub: 9 Tips to Maximize Revenue
After two years in isolation, people are itching to be social and are heading back to nightlife venues. If you operate a nightclub or bar, now is the time to rethink how you do things and set your business up for success.
If you want to know how to run a nightclub or bar while maximizing revenue, you’ve come to the right place. We’re sharing nine tips that will help you save money and keep customers coming back while spending more, including:
- Sell tables in advance
- Track table spending
- Know who’s coming to your nightclub or bar
- Recognize VIPs as soon as they walk in
- Stay top of mind with email marketing
- Organize ticketed events
- Leverage promoters
- Elevate each night out with upgrades
- Keep customers engaged while they wait
1. Sell Tables in Advance
Table service is a huge moneymaker for nightclubs. However, no-shows can hurt profits. Reduce no-shows and maximize revenue by requiring prepayment to reserve tables.
Make things easy for guests and your team by taking reservations and prepayments online. With SevenRooms, you can securely collect card payments through your own website.
2. Track Table Spending
If you don’t want to collect prepayment for reservations, it’s a good idea to implement spend minimums, especially on popular nights, such as weekend and party holidays, to ensure you aren’t leaving money on the table. Enforcing spend minimums while running a nightclub or bar can be tricky, though, if you don’t have the right tools.
When you integrate SevenRooms with your POS, you can see how much each table is spending in real time, so your servers always know when it’s time to take more drink orders.
3. Know Who’s Coming to Your Nightclub or Bar
The hospitality industry depends on regulars. In fact, according to the Pareto principle, 20% of customers are responsible for 80% of profits. When you know who’s coming to your nightclub, you can give every customers VIP service to keep them coming back and spending more.
With a customer relationship management (CRM) platform like SevenRooms, you can know who’s coming to your club and what their preferences are. When you know a guest’s preferences, you can give them their favorite table, suggest drinks they’ll love and increase your average check size.
4. Recognize VIPs as Soon as They Walk In
Beyond your regulars, your club also welcomes high-profile, high-spending VIPs. When running a nightclub or bar, it’s crucial to recognize these customers as soon as they walk in, to ensure they’re given the treatment they deserve.
With SevenRooms, your staff can get Apple Watch notifications when a VIP checks in. With this real-time notice, your team can make sure important guests skip the line, get the best table in the house and have all of their needs met.
5. Stay Top of Mind Through Email Marketing
Social media is a good way to promote your nightclub, but it should only be one part of your marketing strategy. Why? Because there’s a lot of competition on social media, and because of algorithms, your followers may not always see your posts.
When you have a guest’s email address, however, your message will make it into their inbox no matter what. Leverage email marketing to stay top of mind.
With SevenRooms, you can market smarter, not harder, by setting up automated, targeted email marketing campaigns. For example, you could invite guests with upcoming birthdays to reserve a table with you, or send a BOGO drink offer to guests you haven’t seen in a few weeks.
6. Organize Ticketed Events
People come to clubs to enjoy delicious drinks, great music and good company. Give your guests more of what they crave by organizing events, such as themed nights, holiday celebrations or live music events. Sell tickets to drum up interest and collect revenue in advance.
SevenRooms’ integration with TripleSeat makes collecting payment for and managing tickets easy. It also combines your event and food and beverage book into one, so you can maximize capacity without double-booking tables.
7. Leverage Promoters
Promoters play an important role in the nightlife industry: they know how to get guests in the door and fill tables. In order for your promoters to keep driving business to your club or bar, you need to treat them well.
Give promoters the credit they deserve by tracking how many guests they bring in. SevenRooms has promoter tracking and guest attribution tools to help you understand how your guests found you. You can use this data to reward your top-performing promoters, and identify those who are struggling.
8. Elevate Each Night Out With Upgrades
Let guests elevate their night at the club with prepaid upgrades and add-ons. For example, you could let guests upgrade to a corner table, book a meet-and-greet with the DJ or arrange a champagne sparkler toast.
Guests can purchase these in advance through your website when you use SevenRooms’ white-labeled experiences platform. Prepayment ensures a smooth experience for guests and employees.
9. Keep Customers Engaged While They Wait
It may seem like exclusivity is key to running a successful nightclub or bar, but the truth is, people don’t like waiting in line! In fact, 54% of people would leave a club if there were a line outside. Reduce the wait by letting guests add themselves to the waitlist before they arrive.
SevenRooms’ virtual waitlist lets guests check wait times in real time. You can even configure your online waitlist to display your menu, promote upgrades and more. Think of your virtual waitlist as a guest engagement and upselling tool.
Wrapping Up: How to Run a Successful Nightclub
The last few years have been challenging for bar and nightclub owners, but people are itching to get back into the nightlife scene. Make sure you’re ready to accommodate your guests while maximizing revenue.
With a solution like SevenRooms, you can anticipate your guests’ needs and keep them coming back for more. This guest engagement platform is equipped with the tools you need to know your guests, give them the VIP experience, increase profits and keep them coming back for more. Book a demo today.
FAQs on How to Run a Nightclub
1. How Much Does it Cost to Run a Nightclub?
The cost of running a nightclub depends on many factors and can range between $240,000 and $840,000. Then you have to factor in rent, staffing, liquor, dry goods, insurance, music and entertainment and legal fees.
2. Are Nightclubs Profitable?
Despite the costs of running the nightclub, a nightclub can be highly profitable.The most successful nightclubs generate between $25,000 and $30,000 each month. Following SevenRooms’ tips can help you run a successful nightclub and increase profit.