More local clubs make list of nation’s top moneymakers
It may not be Vegas or L.A., but San Diego is increasingly recognized as a hip, night-life destination, with new clubs opening each year.
As evidence of its newfound reputation, the just-released list of the top 100 moneymaking clubs in the U.S. included seven local venues. Just a year earlier, only four local clubs made the list.
Compiled by Technomic, a market research firm, and Nightclub & Bar, an industry trade group, the list is based on a survey late last year of more than 800 nightclubs in the U.S. and takes into account 2011 revenues.
According to the research, 70 percent of the ranked venues reported increased revenue growth in 2011, with nearly half saying they had increases exceeding 10 percent.
“Overall, the top clubs and bars continue to generate growth well in excess of the overall bar and nightclub segment, which grew 1 percent in 2011,” said David Henkes, who heads Technomic’s Adult Beverage Practice. “Although the economy and the industry did show signs of recovery last year, these venues obviously excelled at concept innovation and operational execution, as well as promotion, which enabled them to experience such exceptional growth.”
San Diego’s Fluxx nightclub, which opened in March 2010, was the highest revenue producer among San Diego venues, at No. 24. Its revenues last year, like most of the San Diego clubs on the list, were between $10 million and $15 million, a healthy return but still far off the $35 million to $80 million generated by Las Vegas night spots.
Technomic and Nightclub & Bar were able to more precisely rank the various clubs by using survey data, plus secondary research that included public databases and industry sources.
Last year was an exceptional one for the 8,000-square-foot Fluxx, said manager Dave Renzella. Revenue in December, for example, shot up 30 percent over the same month a year earlier.
“It’s been a good year for nightclubs in general,” said Renzella. “This past holiday weekend, there were a lot of places downtown that were packed, lines outside the door.”