Shining a Light on Nightlife

Hosted by: Elke A. Hofmann, Esq.

From the exorbitant rents, to the limitations of the PPP and the surprising costs of doing takeaway, this often overlooked corner of the industry is awaiting a reprieve that won’t come soon enough.

Kaarin Von shared her experience as the owner of Von, a Noho staple for 24 years. She highlighted that while they’re open for takeout, it only makes up about 5% of normal revenues so her mission in reopening was to create a sense of community morale and to keep her brand alive and well. Her main job right now is “civic engagement” and she regularly writes letters to various local legislators in an effort to make meaningful change for herself and her fellow small business owners in her neighborhood. (One legislator, Harvey Epstein, reported that he hasn’t heard enough from small business owners.) In response, Kaarin joined up with some other small businesses and built a website: www.saveourstorefronts.nyc where they have launched a petition demanding rent relief.

We heard from Johnny Swet, owner of Grand Republic Cocktail Club in Greenpoint and a seasoned nightlife consultant, who shared that while his takeaway business is currently robust, there are a number of considerations and costs associated with being open. “I feel like a cocktail ATM machine” he said and shared that the takeaway model is limited: credit card fees are high and the opportunity to sell top shelf liquors is low. He also shared that his other ventures, on rooftops and in hotels, won’t be opening anytime soon and they’re taking lessons from his little “dive bar;” a welcome shift.

Elke Hoffman, an attorney and lease and liquor specialist, shared a wealth of knowledge. She sees that in lease negotiations paying up front gives you bargaining power later and that the percentage lease deals are actually a ton of work both for operators and landlords. Elke also clarified that a bar can offer batched cocktails that are made by machine or keg but it’s not legal to pre-batch and then serve those pre-made large format cocktails; a departure from what we’ve all seen recently. She also shared that as of Phase III we can expect the to-go leniency to change and that there is a pending law addressing the future of take away cocktails that is being hailed by bar owners and dreaded by liquor stores.

The panel answered a number of questions in the moment that were posed by other well-respected operators, promoters and managers but that left us with the still unanswered question: what’s next for bar owners? For now, they’re depending on good weather and a healthy appetite for takeaway beverages; we’ll have to wait and see what the future holds for nightlife in all its forms.

If you want to get involved and raise your voice, reach out to the State Assembly (provided by Kaarin Von):

The State assembly is hosting a hearing on small businesses impacted by the pandemic:
https://nyassembly.gov/leg/?sh=hear

They are looking for small business owner testimony. Testimony can be sent to:
Matthew Richmond: (518) 455-4928 or [email protected]

For more information and community support:
Please visit the NYCHG Community Hotline, a Facebook Group where hospitality operators can ask questions and members will provide professional guidance.