The EXPO Keynote Address by Maverick Theory’s Michael Tipps (Monday, August 26) served as a wake-up call to an industry that’s been struggling as of late. Some in attendance may have been uncomfortable with what they heard, but as Tipps explained, the way forward means not relying on the successes of the past.
(NOTE: This story appears in the November 2024 issue of ED Magazine.)
Michael Tipps of Maverick Theory brought his 26 years of experience working, managing and consulting in all facets of the hospitality world (throughout all positions, and including hotels, restaurants, bars and nightclubs) to the EXPO to provide a Keynote Address that had attendees talking in its aftermath. Michael Tipps’ career started in hospitality in South Florida where he worked in almost every front of the house position in the corporate food and beverage world. By the time Michael turned 19, he set his sights on New York City, and has been trailblazing ever since.
Based upon his decades of experience and expertise, Michael made appearances on Spike TV’s “Bar Rescue” as a master mixologist and bar expert, and also traveled across the country with renowned TV celebrity, John Taffer, on the “Nightclub & Bar University Rescue Tour.” Michael has also been a contributing writer, Speaker and advisory Board member for the Bar & Restaurant Tradeshow.
Here, we’ve printed a selection of his comments from the Keynote Address.
I promise to be brutally and lovingly honest with all of you about my experiences, and I beg you to do the same. That way we all get something out of this that’s not me just showing off.
How many of you would recommend that your son or daughter work at your establishment? It’s a tricky one, right? How many people in here think that the industry is slowly dying? How many think it’s growing? It’s one of the other, there’s no stagnating.
In the interview I did with ED, we talked about the “shame factor” of adult nightclubs. I don’t mean that anyone here has anything to be ashamed of. We’re all adults. I mean that there’s this unspoken thing that some of your vendors don’t want to be seen going through your front door, they go through the back door. And some customers aren’t going to admit to their friends that they went to your club last night.
So how do we shift that mindset? If we change people’s perception, we change the reality.
The future is coming. And guess what? I’m not going to sell you. That’s the best part. I’m here as one of you. I put months in research into this, months of working with nightclub owners. I’ve worked, obviously, with adult cabarets before. I understand the business model. I understand the profit model.
A venue that can have nudity as a selling point still has to have a purpose beyond the nudity itself. This is the key to the entire industry, of the evolution of it. We are one entrepreneur away from flipping the entire business upside down, where everyone’s gonna go, wow, it’s so simple. Why didn’t we do that? It’s not gonna take rocket science to do this. But it’s one Mark Cuban away from changing everything.
– Michael Tipps
My first time going into an adult club I was 18. We all have this story, every one of us in the room — their first visit to a club. It was the coolest thing I’d ever experienced. And it wasn’t because the club was greatest, it’s because it was taboo, it was interesting. And all the reasons we fell in love with this industry when you’ve had your first experience with something that feels adventurous and dangerous and exciting, like you’re not supposed to be there. That’s a visceral reaction a human being has to a new experience.
So here’s the thing I want to paint the picture for you in your mind: What do people say in 10 years when they walk out of, let’s call it, a venue that has a permit for nudity. What would they possibly say? What could they say?
How about this? What if they didn’t know they were a strip club?
In 2009 three graduates from Cornell opened a venue in Los Angeles that got national recognition because people from the Republican party went there and blew a lot of money. But it wasn’t a strip club. They bought a venue that could offer topless entertainment, and they did the theme of “Eyes Wide Shut.” They put four million into the renovation and they did not make it look like a strip club. And it was not so strip-clubby that Leonardo DiCaprio was there every night, A-list actors were there every single night, and they did exactly what everybody else does. They just did differently. They put a different dress on, and we know it worked, because they were doing $40 to $50k a night in bottle service, and they were equivalent of 3,800 square feet. They did almost $10 million their first year. And they were open four nights a week, Wednesday through Saturday.
How’s that possible? It literally is the same fundamentals of every strip club in America. It required thought. It required guest experience. When you walked in, all the women ignored you. They didn’t come up to you to offer lap dances. They still made their money. They weren’t being what America would call “exploited.” They were being glorified. This was a strip club by definition that the girls in “Sex in the City” would go hang out. That’s how fucking cool it was.
This industry is definitely missing the “cool” factor.
A venue that can have nudity as a selling point still has to have a purpose beyond the nudity itself. This is the key to the entire industry, of the evolution of it. And guess what? It’s going to happen. We are one entrepreneur away from flipping the entire business upside down, where everyone’s gonna go, wow, it’s so simple. Why didn’t we do that? It’s not gonna take rocket science to do this. But it’s one Mark Cuban away from changing everything.
Okay, so let’s get into Gen Z and the Millennials. How many believe the new generation is oversensitive and soft? Here’s the thing: Gen Z has Siri, Instagram, Oculus, OnlyFans and a very intense “MeToo” movement. It’s the truth, and all progress starts with the truth. This is your new wave of people coming in. They are not me at 18 being enamored with the “taboo” strip club.
When I was 13 years old, I was really excited that I found a Penthouse in my dad’s closet. I was stoked, I knew I had Saturday night covered. Do you have any idea what would have happened if I would have had an Oculus at 14? I would have died masturbatory overdose. Do you think these generations are going to be wowed by a strip club? So when you’re 15, imagine what that does to your brain. Now, a girl wants to give you a lap dance, which means you have to go in the VIP area and have the dance and some drinks for the price of a PlayStation Five? No thanks — value versus cost.
How many of you think that the industry is lazy and relies on nudity as it’s only source for income and revenue? Come on, let’s be honest. I want to go to the best cocktail mixology spot that has nudity. Take me there. I want to go to a club that offers Michelin-star dining. Take me there. Because the first person who does it is going to smoke everybody, and it’s going to become a new standard when the normal operator sees the opportunity that you have.
Think about this. Are you guys familiar with what an F-18 Super Hornet is? Everyone’s seen the new “Top Gun” movie, right? That’s what Maverick flies in. Do you think an F-18 pilot can fly a Cessna (small prop plane)? Probably. Do you think a Cessna pilot can fly an F-18? Probably not. See what I’m getting at?
Here’s what I mean: If I take one of the best restaurant operators in the world and I give them any one of your adult clubs and say, “I’m not going to tell you what to do, go” — are they going to fall on their face a little bit? Sure. But they’re going to figure it out because (nudity) is just an added thing they have. They don’t look at nudity as like, Oh, it’s the most amazing thing, it literally sells itself.” No, what he or she is going to do is what they’ve already been doing as a successful restaurant operator, that’s it, and now [with the addition of nudity or semi-nudity] they’re going to attract everybody, and they’re going to make everybody feel welcome. That’s the difference.
Can an adult club operator step in and run a Michelin-star restaurant in New York? Can a Michelin-star restaurant operator come in this industry and run a club? This is the future of what’s about to happen. Because, yes, it’s not just conglomerates [club chains] who are going to come in and buy clubs, and these people are going to make a lot of money in this industry.
Sex is never going to not sell. We all know that, right? And yet, Playboy is dead. If it’s happened to Playboy, it’s going to happen to the clubs. So when you think about the concept, you want to think about what creates that feeling that we had when we were 18 that we all had: ‘This is cool, this is dangerous. I want to tell people about this.’
– Michael Tipps
How many of you think that the strip club industry is cool? Like when people look online at sites like Yelp, and they go, I want to go to this cool cocktail lounge, or I want to go to this (strip club)?
How do you define cool? Cool sets every trend in modern history, and right now, this industry is lacking cool. I know that many of us are sitting here saying, how do we appeal to the newer generations?
There’s something cool about being discreet. It’s what a new generation wants. And I’m not saying you abandon what works, abandon 80% of it, keep the 20% that’s working and re-engineer the 80%.
This is about mood. When I walk into an adult nightclub, what’s the mood? And we’re going to get into service and hospitality, and you’re going to realize there’s simple things that you can do, and you’re going to go, Yeah, dude, we’ve all thought of this shit.” I guarantee half this stuff I’m going to say you guys have though of. So how come no one’s doing it? Is it getting lost in the “how”?
Let’s get into the “names” part of this equation. Let’s pick on regular bars, what I call “mainstream” bars, because they have the same core issues that we have in this industry. We see places like “Jack’s Tavern” and “Bob’s Grill and “The Library Bar,” right? There’s one on every street corner. When was the last time you drove by a packed bar in America and you thought it was a hair salon? So why do we call them taverns? Why do we call them bars, and why do we call them strip clubs? Your name is your best piece of marketing; it’s what creates intrigue, especially in a time where everything is a destination.
I’ll make up an example. My business partner over there is Arno Stemmer. So let’s say I hate Arno and I think he’s an idiot. Okay, let’s just say I build a bar that looks sick; rustic 1920s, yet it’s super approachable, and I call it Arno The Idiot. Everyone’s gonna go on Yelp, and say, “Oh, that looks different, what is that?” And the renovation is right, and the booze is right, the food is right, and off it goes, That’s fucking cool. And they go, what’s the story? I say, my old business partner’s a fucking idiot, so I named it after him, and everybody laughs. And it gets that reaction. You think the reaction of Jack’s Tavern gets that? No. That’s marketing 101 — get a reaction.
Sex is never going to not sell. We all know that, right? And yet, Playboy is dead. That’s the biggest model I can give you. If it’s happened to Playboy, it’s going to happen to the clubs. So when you think about the concept, you want to think about what creates that feeling that we had when we were 18, that we all had, of like, this is cool. This is dangerous. I want to tell people about this. “Taboo” feels awesome.
I’m gonna give you an example of a concept that we’re working on right now, the Hellcat Social Club [Tipps shows a series of photos]. Is it a strip club, or is it a cocktail bar or nightclub? Let’s build out something gorgeous, something that women feel beautiful at when they’re there. What a concept in the bar world. Isn’t it funny that it’s 99% of bars/clubs are owned by men, and they want to attract women, and they build out everything to look like a lumber yard or a garage. It’s common sense, like Jesus Christ, why not design a place that makes my wife want to dress up and think, “Oh, I feel beautiful here. I feel sexy as hell when I walk in here.” That has to do with your build out, your environment, your smells, and all those six senses.
At that point the nudity becomes an amenity. It’s not the main focus. Someone’s going to do this, and they’re going to do it very soon, with the right lighting, all of those elements. [Shows more photos]: These bathroom aesthetics might look fancy and expensive, but this is really inexpensive, and I’m working with interior designers. Why would I do that? It’s a strip club, right?! Men can just piss in a trough, right? We all know that women want to come out of the bathroom feeling beautiful at any and every bathroom on this fucking planet, but a strip club isn’t the same? “Well, you know, we put some pretty pictures up and we throw a plant in there” — that’s not going to do it. Let’s put some thought behind it if you want to make real money.
In social media, you have the same rules as every other venue. I would challenge you to look at mainstream operators and go, “We’re coming after you,” instead of the other way around. Because right now, for a mainstream operator, adult club owners are easy prey. They have to deal with so many more variables and so many more standards that they implement. The only way that people will come in and get repeat guests is through the quality of what they serve and how they serve it. They don’t get to rely on nudity or primal needs or desires to push for repeat guests.
What’s crazy is, when you look up strip club interior aesthetic on Google, every picture looks identical. What separates the pack, even internally in the industry — what separates you guys from each other? We know there’s cocktail joints that do different eras, there’s barbecue joints that do different types of barbecue. But what’s different about the programming that separates you? Is it your operational flow, your staff management, your hours of operation, your layouts, the kind of events you throw, the different levels you have in your seating? What separates you?
You should be learning everything you can about hospitality and service outside of nudity, and your front door is the proof of this. I know when I see a guy who’s like an offensive lineman at the front door, I don’t feel more safe. I feel like, why do they have security guards that big?
They’re making me feel like I’ve already done something wrong before I walk in your place. How can you spend $5 million on a venue and put a moron at the front door?
Instead, I’d rather put a retired Army Ranger (at the front door). He’s a guy who could turn me into a balloon animal, right? But because of that, he’s the sweetest guy in the world. And that’s the tone that you want coming in, that men feel empowered and women feel beautiful, not that men get sized up at the door, creating anxiety. It’s fundamentally the biggest fuck up in all of hospitality, all of bars, restaurants, nightclubs or clubs, everything. How can you invest millions and not put money into that front door? You’ve got to run the door a little differently than how it’s been done for the last 50-60 years. So why not do it differently and blow people’s minds? And this has to do with effort, focus and care, not about money. You cannot buy this.
But let’s say your door guy nails it. It’s awesome. But then I go to the bartender. The bartender’s on their phone. Now you’ve lost me. I’m not important. I’m not relevant anymore. Instagram, for you, is more important than I am, but I’m here to spend my money. It goes on through every transaction, every runner, every dancer, every GM, everyone affects the domino. So it’s very difficult to have a perfect night where all the touch points are perfect.
Your guest wants quality, consistency, and excellent service. They want a memorable experience. They want hospitality, excitement, originality, escapism, elevated environments, clean environments, amazing cocktails, amazing food, a thoughtful, informative staff, a human connection. They want to feel cherished, and they want to feel relevant. None of us want to go to a bar and just get overlooked. It doesn’t feel good. We’re all the action heroes of our own movie. If you don’t want to make others feel relevant, you’re in the wrong business. It’s called service for a reason. “Well, I don’t need to, because I got the girls here and the guys are coming in.” That’s lazy.
Vending machines have customers. We have guests that require situational awareness, emotional intelligence, authentic connection. Teach that to a dancer, see how much money she makes. Emotional intelligence means being aware of what’s going on in the room where someone’s at gauging, not treating everybody the same. These are the tools. And I’m telling you, it’s a matter of effort.
I’m not saying that everything needs to be elevated where it becomes the Ritz Carlton. I’m saying I like shitty dive bars. I like Play it Again Sam’s (strip club) in Vegas. I like places that are grungy, and I feel like in an old Nirvana video. That doesn’t mean I want to be treated like shit. It’s a mindset. Even if I take away the pretty build-outs, the core is still there. The concept and the build-out is the body, the people are the heartbeat and the soul. But if you don’t cherish your staff and you still expect them to cherish your guests, it’s not going to happen. Every guest needs to go walk out feeling cherished.
For more information, head to mavericktheory.com or send an email to mt@mavericktheory.com.
