People Who Know Things: Shane Davis

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In what may become a new segment, People Who Know Things will feature individuals working within various aspects of nightlife who regularly have access to nightlife intelligence.

For the first edition of People Who Know Things, I interviewed Shane Davis. Shane works in nightlife as a consultant for hospitality operators who are looking to open new clubs and restaurants. Because of his line of work, Shane is one of the first to learn when things are developing in nightlife and for that reason, he is a person who knows things. 

Below is my chat with Mr. Davis.

Tell us about your role in the nightlife industry?

I specialize in nightlife and entertainment within the real estate industry, mediating transactions, and helping both sides of the equation develop and execute food & beverage driven projects within a multitude of contexts.

Who are some of your clients?

I’m fortunate to have a pretty well established niche and loyal clientele; if I had to name a few recent deals I’m particularly proud of, I’d say Double Seven-BLT, Goldbar 2.0, and Satsky & Gefter-Shadow.

Recently I did a quick count in my head and came up with a dozen new (or reopening) clubs and restaurants expected to open in the Meatpacking District in 2013. What specifically about the present time is driving leases to be signed for spaces all throughout the rather small neighborhood?

Meatpacking has always been very attractive to nightlife, at first because it was a predominantly commercial area where operators could obtain the necessary licensing due to zoning classifications and get loud without much community pushback.  The second incarnation being still heavily driven by feasibility but more about luxury and exorbitance with a very international sensibility.  But now that the area’s well passed its transformation, I think operators just want to get in before it’s too late. Ground floor rents in the area are demanding over $200/SF - levels that hospitality venues simply can’t afford to operate at. So the demand has always been there; execution is the tough part.  

If somebody is looking to open a nightclub as a first time operator without a pre-existing following, are there particular neighborhoods you see as beneficial or detrimental for first-time owners?

Location definitively plays an integral part in establishing identity, however I think context is the most important thing. The interplay between site, space, location, design, programming - each creative choice, is what makes nightlife exciting.  If an operator wants to make some noise without leveraging their name or background, they better shake things up a bit.  It’s unlikely we’re going to think twice about another bottle service driven club in Meatpacking or another divey punk bar in the East Village, but a bottle service driven divey punk bar in the East Village might get our attention.

Overdone trends in nightlife?

I think the commodification of DJs is getting a little out of hand. Don’t get me wrong, I’m big into DJ culture, and the EDM phenomena has clearly been instrumental in creating a newfound consciousness for dance music among the masses, but I think it’s time for people to start caring more about the music and less about who’s playing it.  Popular music will always dictate the direction of most nightclubs, but I’d like to see the industry continue to push the envelope music-wise, exposing us to new genres and inspiring the scene as a whole.  I’m optimistic that will happen and look forward to contributing to the process.

A concept you’d like to see done in New York?

I’ve been really into this party called Shadow City in the UK recently.  Really raw but really sexy music driven concept highlighting some serious young talent to a crowd that gets it.  Those kids are very quietly pushing some of the best music in the world right now.  Bardot in Miami for its music programming as well.  The owners have top notch taste and are consistently highlighting the most relevant acts around.  Can’t forget Le Pompon in Paris- hands down one of the coolest brands in the world (we helped put together their Art Basel pop-up last year) and of course I’m eager to see each of the international brands I’m currently working to bring to NYC come to life.

Any funny or memorable quotes from a Community Board meeting?

The first rule of fight club is…

How are you able to approach landlords and operators to pitch them with an offering? How are you able to build the trust necessary to close deals when dealing with people who have been in the hospitality industry for decades, who have likely opened or leased spaces with other brokers and consultants in the past?

In most situations my team’s experience and relationships speak for themselves so I rarely find myself “pitching” in the conventional sense.  Creating business isn’t the hard part- It’s all about closing deals.  And despite being relatively young, we’re just as, if not more active than anyone else in the city when it comes to F& B.  The short answer to how our differentiates ourselves from the pack, is that we’re heavily immersed in all things hospitality, not just real estate.  We live it day in day out.

What do you make of New York clubs increasingly throwing pop up parties all over the country and world?

I think it’s great - From both a business and social standpoint.  The idea of “owning a customer” has been one of the more significant trends in nightlife over the past couple of years.  High level operators rely on their big spenders to drive their top line and if they’re not able to curate an experience worthy of the business, these spenders will gladly take their deep pockets down the street.  The elite brands take this concept to the next level by following their clientele around the world curating experiences for their crowd in various environments.  But I think it’s important to note- although these pop-ups typically exist in glamorous destinations like Cannes and Ibiza, it’s not necessarily about going to the hottest places – it’s about being where your friends are.  

5 year goals?

To have cemented my influence in the global marketplace. 

Shane is on Twitter: @ShaneEvanDavis

Q&A with: The Butter Group’s Michael Goldberg

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I recently chatted with Michael Goldberg, The Butter Group’s Director of Marketing; we talked about his role, how DJs can get on his radar, the future of Butter, and the number of 1 OAK hats in existence, among other things. Read our talk below.

Describe your day-to-day activities as Director of Marketing at Butter Group

The thing I love about my position at Butter Group is it is very dynamic and changes weekly. I handle all talent booking for our venues in New York as well as play an active role in bookings for our 1 OAK Las Vegas property. I generally spend a week in Vegas every 4-6 weeks. I oversee all branding for our NYC properties, which we recently brought fully in house. I spend time every day posting content on all of our venues social media. A large part of my position is setting up and coordinating our pop up parties that we do all around the world- Paris, Milan, London, Ibiza, etc, which I feel is a huge part of what has made 1 OAK a global brand – which continues to grow. Right now I’m focusing on setting up our events in Cannes and Monaco that we do each May, as well as preparing for 1 OAK Los Angeles opening this Fall.

1 OAK has been tweeting since the beginning of 2011, while Twitter had gained significant popularity in the 12-18 months prior to that. Was there a time when the club thought it would never use social media?

Yes, 100%. When I started working for 1 OAK in Sept. 2010 they weren’t using any form of social media. After a couple months I started to develop 1 OAK’s social media but very slowly. I didn’t want to go from zero – 100 with the fear of turning some of our clientele off. I never understood why using social media could be viewed negatively. It is your voice. You post what you want. There are still a lot of events that we do that I never mention on social media because they are private and not for everybody. Social media is an asset that should be utilized for any business.

Have their been measurable benefits from using social media? If so, what are they and how have you measured them?

There are definitely benefits of using social media. It gives us another channel to inform our audience about what is going on in our venues. Social media is another platform to develop our brands. It is another opportunity to showcase our creativity- whether with flyers, videos, etc. We are able to measure how effective our social media is by looking at analytics but a club having a strong social media presence does not translate to having a successful club. Somebody that actively engages in our social media may have never walked into one of our venues, where as some of our most loyal customers may not know that we even use social media.

GoldBar relaunched, Marquee relaunched; is Butter making a comeback this year?

Butter is definitely making a big comeback this Fall but it is a little too early for me to share details.

With 1 OAK expanding from one location to three locations, and soon to be four locations with 1 OAK Los Angeles opening later this year, how does your role change with the company?

When I started working with Butter Group, 1 OAK was one club in NYC. Four properties later and plans to further expand, my role continues to grow. In addition to my day to day responsibilities, leading up to opening of each property outside of New York, I play a large role in developing marketing strategies and programming catered to each city while staying true to the 1 OAK brand. Gearing up for 1 OAK LA, I will be spending time out there preparing for the opening.

Is it safe to say 1 OAK will never switch gears to focus on electronic music like many other clubs have?

Michael Jordan wasn’t nearly as good at baseball as he was at basketball. We weren’t influenced when everyone else went electronic.  We continued to do what we know best and it has been very beneficial to our business.

If I was a DJ with limited to no contacts in New York, how can I best grab your attention for possible bookings at 1 OAK and The Darby?

Play good music and you will get my attention. If I am out and hear somebody playing that I don’t know, I often approach them to get their info. When I moved to NYC, I had very few DJ contacts. Two and half years later, I have 250 DJs in my phone and another 3-400 email addresses.

Let’s talk food. Your favorite restaurant not named The Darby or Butter?

It is too tough to name one. Some of my favorites are Bar Pitti, Café Cluny and Il Buco.

The best late night food is from ___________

Joe’s Pizza on Carmine for a late night slice.  Blue Ribbon or The Standard Grill if you are looking to really get into it.

Nightlife sometimes gets a bad rap due to the people who work in it. Who in the industry do you believe gives nightlife a good name?

Generally, the guys who you see during daylight.

How many 1 OAK hats are in circulation?

Richie (Akiva) has probably gone through a couple hundred alone. We try to keep them pretty limited but we often get requests — I saw one on eBay a month ago selling for a couple hundred bucks.

RSVP Sold; Jon B and Seth Levine Make Moves in Midtown

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RSVP, the sceney restaurant lounge at 15 Watts Street has been sold, according to a source close to the deal. Both owners Jon Bakhshi (better known as Jon B) and executive chef Seth Levine have retained the RSVP name but are out after reportedly signing over the space on Saturday to Turkish buyers who plan to reopen it with a new concept and direction. Mr. Levine who confirmed the sale, declined to comment on the details of the deal, but added “it made for a good birthday present;” the chef turned 32 today.

Back in the fall, plans of a second RSVP location in the former Frederick’s space at 8 West 58th Street were leaked to NYNightlife and it appears Jon B and Mr. Levine are currently developing a concept which may or may not be RSVP for the 58th Street location, putting the duo less than two blocks from LAVO and the rather mysterious Pink Elephant affiliated club at 40 East 58th Street, possibly making a two-block stretch of Midtown an increasingly popular late night destination.

Louis Puig’s Annual EDM Letter

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Below is Louis Puig’s annual electronic music State of the Union, if you will. In it, he talks about Ultra hurting local businesses with their “artist exclusives,” the sale of Beatport to Robert F.X. Sillerman, Club Space being sold, and what his next club will be like (hint: there won’t be any confetti music played).

“Greetings Fellow Electronic Dance Music Fans and Welcome to MMC 2013.

Every year at this time, I write my tell it like it is letter regarding MMC and EDM. Basically it is my reflection of what to expect from MMC and the current and future state of EDM. I also try to add some inspiration, humor and constructive criticism. If there is any content here that you find personal or offensive just think of it as that ringing left in your ears after being at Space all night. Eventually you will either ignore it, get used to it or it will go away.
This year instead of writing just a letter, I broke things down into sections as a producer would tracks on an LP. That way you can pick and choose the ones you favor and ignore the rest. That being said let me push play and start the first track on this LP.
WMC, MMC, MMW, UMW. After 10 years of pushing and trying, I finally got my wish. As you all know, I have spearheaded the effort to unify Winter Music Conference / Miami Music Conference /Miami Music Week / Ultra Music Week… and to extend conference to more than just 1 day, 1 weekend for 1 week. I am thankful to the Ultra boys for finally coming to their senses and doing 2 weekends. Now they can make even more money. All I have left to do is convince them to lift all the “Ultra Artist Exclusives” so that adults can also enjoy Carl Cox and other “exclusive” artists at our favorite adult events, pool parties, clubs and afterhours. Artists should be free to perform or create what they like, when they like and where they like and, anything which prohibits or limits artist’s freedom is anti-art and is the complete opposite of what EDM stands for. These exclusives are hurting our local venues and employees and are keeping the over 21 crowd visitors from enjoying their fav DJs. As I said before, I LOVE ULTRA and even saved its ass and kept it alive one year when the organizers were broke but I will not stand for monopolization in our industry or of our artists and especially when it creates an unfair competition towards our local business and venue owners. Greed and the monopolization of artists to the extent where you hurt our local businesses are NOT the ingredients of the EDM formula. These Ultra imposed exclusives are not just for MMC week as they also prohibit the artists from performing locally or in South Florida up to 90 days before or after MMC, which is our high tourist season. Establishments such as the giant Ice Palace Studios are going dark with no events or DJ’s during these 2 weeks of Music Conference because they “cannot get DJs.” The same is happening to many Miami and South Beach venues that own or rent property and pay mortgages, rent, taxes and employees not just one weekend at the park but 365 days a year. The irony of this is that Ultra is renting our public parks (Bayfront Park) to do so, which btw is completely illegal according to the Bert J Harris Act. In fact, the City of Miami could be liable for allowing this unfair competition by renting its land to Ultra who continuously ignores the local business owner’s and City’s requests to lift the DJ exclusivities. It took some work for us to get 2 weeks of music conference and now we are all the better for it. We have more days to enjoy music and Miami and, Ultra has more days to make more millions. It is time that they stop being so greedy and selfish and give back to the local business owners and community that hosts and supports them. Give the artists their artistic freedom and lift the Ultra exclusives that are hurting our community and local business owners or give us back our park.


FUTURE OF EDM. I am hoping that the future of Electronic Dance Music will be the complete opposite of the commercial Mash Up sound you hear at VIP clubs today. This sound is monotonous, tiring and not even the DJs that play it like it. In fact, they actually hate it but they sold out to it and are now stuck playing it. The sound reminds me of the Walt Disney Electric Parade. Some people call it Swedish House Music but I call it VIP Confetti Music but no matter what you call it, it is complete rubbish and what is worse is that it generates the complete opposite energy and effect of what dance music was designed to do, which is for people to dance. Believe it or not, the plan was never for you to show up, stand on a dance floor ignoring your date our friends and look at some clown jumping up and down waving his finger in the air while playing prerecorded laptop sets. Fortunately EDM fans are very intelligent and educated and they are finally catching on to these theatrics. These DJ finger waving performing clowns have numbered days. Techno, Tech, Deep House and other underground EDM genres will prevail. In case you do not understand what I mean by VIP Confetti Music, just visit the top 100 in the “progressive” category on my fav music dance music website and Robert Sillerman’s latest acquisition, Beatport.com. I remember when the Beatport progressive dance music chart was actually progressive.

Robert Sillerman / SFX. If you have not heard by now Robert Sillerman AKA SFX is spending a billion dollars to buy and control the EDM Industry. Some people are labeling Sillerman “Big Brother” and think he will be the end of EDM as we know and love it. I have been around long enough to know better. I lived the end of Disco, Rap, Hip Hop, Mash Up and hopefully soon Confetti Music. EDM is not going anywhere.

I respect and admire Sillerman but sometimes he gets himself into businesses that he has no business being in such as the real estate deal he did in Anguilla. I have no idea who is advising him on EDM but they are completely steering him the wrong way. You don’t buy the milk, then the cow, and then the ranch, you buy the ranch with the cows first. He should have spent his money in buying the biggest DJ agency first and not the trendy clubs and festivals that DJs play at. Or at least started his own DJ booking and management agency by stealing the top agents from the existent agencies. They would have brought their DJ clients with them and signed them on to multiyear contracts. This would have been a fraction of the cost and a lot more manageable. As is, he is the owner of a bunch of clubs and festivals that are going or will be going out of style before his EDM Company goes public. What is worse is that he has no one to control or oversee all the club and festival owners and operators he left in charge. Think of it as being the owner of a fleet of pirate ships and thinking that all your ship pirate captains will stay honest and true. How many club or festival owners or operators would you trust with the keys to your house and the combination to your safe? Robert, do yourself a favor and find someone who understands EDM and what is at stake, clubs and festivals are not radio or TV stations. As they say, “hire the best to watch the rest.”

But, the biggest thing that Sillerman seems to be missing is the spirit of EDM and House music. Sure, it’s easy to look at the scene now and see it as being ripe for commercial takeover but the truth is that this scene has always resisted and rejected that path and will again unless they see it as authentic. I know that, once EDM fans get a whiff of the corporate control, they will rebel and run back to the sounds, artists and venues that they see as authentic. Unfortunately, the SFX pirate captain brigade doesn’t get this. They’ll learn, as many before them have, that this is a different scene and that our fans are not so easily fooled.

SALE OF SPACE. It is true; I sold Club Space and this will be my last Space MMC. I’m very proud of what we created in Downtown Miami and have been privileged to work with some amazing and talented people. 13 years is a very long time for any club to be around and I couldn’t have done it without all the people who supported Space in so many ways. Its 130 years if you want to compare it to human years. It was time for me to move on and let someone else carry the Space torch.

Space was ahead of its time; it was the antiestablishment to the South Beach commercial VIP clubs with the French velvet-rope attitude that unfortunately still prevails today. Space was underground and so separated from the norm that few gave it or me a chance of success. The only person who actually saw my vision and believed in me was Ricardo, the owner of Pacha Ibiza. We were at a dinner party in Ibiza back in 1999 and I pulled out a set of Space blue prints and showed them to Roberto. He looked at the plans and looked into my eyes and said, “esto va tio.” If I had to pick a club mentor, he would be the one. The rest is club history. Now it is time for history to repeat itself. It is time for a new space which will set the bar for the next decade.

Space was a vision I carried with me for almost 20 years since my first visit to Ibiza in 1981. The concept that I am working on now is a product of a vision I have been formulating in my head since Space opened with Danny Tenaglia in 2000. This new space will hopefully have the same effect on our industry as the first Space. It will be bigger and better since I now possess a more thorough and extensive knowledge of the qualities and details that make a club a legend. In other words, I know now what I wish I had known then and plan to use that knowledge to create something truly unique. This space will be the antiestablishment of this new era and once again the antithesis of the South Beach / Las Vegas commercial VIP confetti clubs.

HIERBAS IBICENCAS. Aaah Hierbas! Why can’t all alcoholic beverages and spirits taste like this? I fell in love with this heavenly nectar the first time I went to Ibiza back in 1981. It is the favorite drink of Ibiza and my DJ friends and it is finally available in the States. In fact, it will be making its debut at this year’s Music Conference so ask for “Hierbas” at your favorite club, restaurant or pool party. Shots or “chupitos” as they call them in Spain or on the rocks, Hierbas is delicious any way you drink it. Go towww.hierbasusa.comfor the complete Hierbas story and enjoy the sights and sounds of Miami Music Conference with Hierbas Ibicencas by Mari Mayans. It is 100% Ibiza.

Enjoy the conference, drink responsively and don’t forget to tip,

LP”

What Nightclubs Are Doing to Prepare for the Soda Ban

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[photo via: Pulsd.com]

On March 12, Mayor Michael Bloomberg’s proposed “soda ban” is taking effect which will affect nightclub operations regarding how bottle service mixers are served. Currently, when a customer orders a bottle at a nightclub, the customer will receive multiple carafes of mixers, including juices, sodas, and tonic, which will accompany their bottle(s) of alcohol. The carafe size is typically larger than the soon-to-be-outlawed 16 ounce limit for soda (not including diet soda) and sugary beverages which are not 100% juice. Water and 100% juice will be allowed for unlimited consumption in any size carafe or bottle; however, sugary beverages will be limited to one carafe per person at the table. So just how will nightclubs serve mixers once the ban is in effect? NYNightlife spoked with individuals in the nightlife industry to find out what some nightclubs are doing to prepare for the changes ahead.

One logical method to be able to serve soda and non-100% juices, (which have been staples on nightclub tables) is serving carafes which hold 16 ounces or less. In preparation for the March 12 city-wide soda ban kick off, Kiss & Fly, Brasserie Beaumarchais and RdV’s parent company, 13th Street Entertainment already adapted according to partner, Corey Lane who stated: “We recently switched to 12oz carafes. The switch to the smaller carfes [sic] hasn’t slowed down our operation or put any kind of noticeable burden on service.” The second part of Mr. Lane’s statement about service slowing down due to the smaller carafes having to be refilled more often than larger carafes has at least one other operator worried. When asked about the soda ban, EVR’s managing partner, Alex Likhtenstein said: “I feel very badly for the bussers who work hard enough as it is, and are now going to have to work twice as fast to refill tiny carafes.”

At the newly reopened Goldbar, “we are going to utilize smaller carafes for those wanting cranberry and tonic but will emphasize delivering more fresh squeezed fruit juices with any bottle service. Its [sic] more in keeping with our hand-crafted cocktail philosophy” says the club’s representative, Steve Kasuba.

While some operators may be wary of the increased cost associated with 100% juice, Dual Groupe’s Daniel Koch explains: “I am all for it. It’s the future. This is how its [sic] done in Europe (South of France) and its [sic] a much “cleaner way of doing business.” Mr. Koch goes on to state: “Bottom line, margins are already crazy these days; so if we have to spend the extra dollars on these fresh products, so be it. I think it raises the bar - Esp [sic] with brand awareness! I’m in favor!”

Still, there are other factors to consider. If clubs are now fresh squeezing juices and or serving 100% juice out of a bottle, which adds to their costs, will clubs eat the additional costs or will they be passed along to the customer opting for bottle service? One might also speculate the possibility nightclubs will begin limiting the number of carafes accompanying a bottle of liquor to better be able to manage costs, with additional juices being sold by the carafe. 

Whatever nightclubs decide to do, they need to decide quickly in order to avoid the $200 fines associated with disobeying the ban as there are only two weeks left until the changes go into effect.

The Effects of Cover Charges

If cover charges for “good” New York nightclubs are coming back into play, there will be some changes to the nightlife experience and landscape. With a cover charge implemented, people paying for entry will be less likely to hop from club to club throughout the night if they have to pay $20, $40 or even $100 to get into a club. This means, instead of spending $25 at club A, $25 at club B, and $25 at club C during a night out, a vast majority of partygoers will only be spending $75 on drinks at one club if they paid a cover charge on their way in. Opportunity costs are at play.

So what does this mean for nightlife? With people only choosing one nightclub per night to visit, using the previous example, this means two other clubs will lose out on generating $25 apiece from one customer. If cover charges become the norm, I think we can expect to see a high percentage of clubs closing down.

Another effect of the popularity of cover charges deals with real estate. Suddenly the neighborhood of a club, to an extent, is less important because if people are only going to one place for the night, it does not matter if there are four other club options nearby or zero club options nearby because subconsciously they know they are staying put. This is especially true when looking at nightclubs e-ticketing their parties. A customer does not have to worry about having another club option if they are guaranteed admission; it is almost as if you’re going to a Broadway show — it does not matter if there are one hundred other theaters nearby, you are only going to one show for the night.

This may lead to more nightclubs opening in areas formerly undesirable with the direct benefit of a lesser rent per square foot. Surely, nightclubs opening in undesirable areas is nothing new with City regulators utilizing nightclubs to transform dilapidated sub-neighborhoods into areas developers can use for luxury condo buildings and high-end retail locations (at which time regulators put the full court press on clubs looking for reasons to shut them down as they’ve already served their purpose), but this time around we may see clubs open in areas not on the physical fringes of Manhattan, but in centrally located neighborhoods like NoMad, Koreatown and the Garment District, which are only a quick cab or subway ride away whether you live uptown or downtown. 

Outside of real estate, there is a perceived increase of personal safety when clubgoers stay put in one club, rather than drunkenly walking around from club to club throughout their night. This makes getting into otherwise easily avoidable situations when you are sober easier if you do not have to travel. Less drunk people walking around at night also increases the quality of life for residents living near a nightclub.

Oh, and if and when people get used to paying a cover charge again, this makes Brooklyn more of a Manhattan nightlife competitor, but that is a blog post for another time.