Started By
Message
re: Nightlife News for Starkville: State Theatre to possibly reopen?
Posted on 2/13/13 at 11:18 am to sharpSee
Posted on 2/13/13 at 11:18 am to sharpSee
Couple of things.
No.1, Stagger Inn got caught drinking after hours. This is a stupid rule and it was employees but none the less, after closing time, if you have alcohol out, they'll get you!
2nd. The State Theater location will be very tough to make it work. First the lack of parking, you have space for 800 and parking for 40. Also, over the years, as every new "owner" has leased the space they have renovated and added to the note. In other words, the lease is now too high to actually cash flow. Starkville bars have been in a pricing war for 20 years now. Its very difficult to get more than $3 for well drinks and $2 for a beer. With that being said, from what I understand, the lease payment would be well over $10,000 a month. That means you would have to gross $30,000 per month in sales just to pay the lease. Thats no electricity, staff, bands, security, advertising, licenses, etc... Folks, those kind of sales figures aren't gonna happen in Starkville at $3 a pop. Maybe a few months of the year when we have multiple home football games, but not 12 months a year. So the only way to make it cash flow is if somnebody can afford to pay cash for the space with no debt. Then they would have a fighters chance to at least break even over the first 8-10 years. Understanding that, how many people are willing to risk 1.5 million cash just to break even after 8 years? I'm sure many others will try and lease it over the next several years but in reality they won't make it either.
No.1, Stagger Inn got caught drinking after hours. This is a stupid rule and it was employees but none the less, after closing time, if you have alcohol out, they'll get you!
2nd. The State Theater location will be very tough to make it work. First the lack of parking, you have space for 800 and parking for 40. Also, over the years, as every new "owner" has leased the space they have renovated and added to the note. In other words, the lease is now too high to actually cash flow. Starkville bars have been in a pricing war for 20 years now. Its very difficult to get more than $3 for well drinks and $2 for a beer. With that being said, from what I understand, the lease payment would be well over $10,000 a month. That means you would have to gross $30,000 per month in sales just to pay the lease. Thats no electricity, staff, bands, security, advertising, licenses, etc... Folks, those kind of sales figures aren't gonna happen in Starkville at $3 a pop. Maybe a few months of the year when we have multiple home football games, but not 12 months a year. So the only way to make it cash flow is if somnebody can afford to pay cash for the space with no debt. Then they would have a fighters chance to at least break even over the first 8-10 years. Understanding that, how many people are willing to risk 1.5 million cash just to break even after 8 years? I'm sure many others will try and lease it over the next several years but in reality they won't make it either.
2
Posted on 2/13/13 at 12:03 pm to 4suredog
quote:
2nd. The State Theater location will be very tough to make it work. First the lack of parking,
False. There is an entire main street of closed businesses at night. Park and walk two blocks. shite. A lot of people riding the shuttles as well.
Nice post though. Good info. Thanks.
This post was edited on 2/13/13 at 1:15 pm
Posted on 2/13/13 at 12:28 pm to 4suredog
Correct on basically everything dealing with the lease. That's the part that throws the entire operation into a tailspin.
All it really needs is someone to come in and BUY the joint and start fresh running it themselves. In that business model, it could be incredibly profitable.
You can buy "cheap" beer in Oxford too. But everyone still goes to the Library and spends their life away. There is a reason for that -- and it's an ingenious business model. You realize many of the women that go there regularly are carefully recruited by ownership/management -- they barely pay for drinks and have VIP cards to get in free right? Control the women that control the other women -- and you control the entire market -- and the guys will pay WHATEVER it costs to be in that place...
All it really needs is someone to come in and BUY the joint and start fresh running it themselves. In that business model, it could be incredibly profitable.
You can buy "cheap" beer in Oxford too. But everyone still goes to the Library and spends their life away. There is a reason for that -- and it's an ingenious business model. You realize many of the women that go there regularly are carefully recruited by ownership/management -- they barely pay for drinks and have VIP cards to get in free right? Control the women that control the other women -- and you control the entire market -- and the guys will pay WHATEVER it costs to be in that place...
Page 1 of 1
Popular
Back to top
Follow SECRant for SEC Football News