Is It Worth Opening a Nightclub in the USA, and How to Do It?

In North America, like many other countries worldwide, there’s a surge in public and tourist interest in nightlife venues, especially nightclubs. In fact, the U.S. has long established a culture around these venues. Existing clubs can typically be divided into three categories.

Types of Nightclubs in the USA

Small Clubs

This category includes clubs with a space of up to 800 square meters. Owners of smaller venues usually prefer to rent a building or a part of it rather than buying. These clubs typically have a bar counter, seating for 100 to 350 people with small tables and chairs, and, of course, a stage. Additionally, they feature necessary facilities, including back rooms (like a small kitchen and storage), restrooms, and a kitchen only for light snacks. The staff is limited, with only 6-8 people working in the venue.

The program in these clubs is generally straightforward: parties, corporate events, or private functions. Peak times are Thursday through Sunday. On other days, these clubs function as casual bars where people can gather, chat, watch sports, and have a drink. To avoid unnecessary expenses, some owners close the club on the first two or three days of the week.

Lounge Clubs

These are larger spaces, ranging from 1,000 to 1,800 square meters, either rented or owned. Such venues can comfortably accommodate up to 600 people. They are divided into zones with multiple bars, dance floors, a stage, and comfortable seating options like large chairs and sofas instead of small chairs. There are also VIP zones, which can be either open or closed.

With a more upscale status, owners need to consider security, a kitchen, a wardrobe area, larger restrooms, staff break rooms, and dressing rooms for performers. The kitchen provides a daily menu of 6-8 main dishes, a variety of snacks, and hot drinks.

The staff includes bartenders, waiters, security, managers, and cleaners, with up to 18 people in total. Performers, DJs, and additional security may be hired for events to ensure safety and entertainment.

Mega Clubs

The name suggests an extensive space with multiple zones. These clubs range from 3,000 to 4,000 square meters, with stages, halls, VIP areas, boxes, dance floors, and separate rooms for parallel events with DJs, guest performers, and karaoke rooms. These clubs are designed to host up to 1,000-1,200 people at a time.

Mega clubs come with several restaurants and kitchens providing a full menu. There are back rooms, dressing rooms for guests and performers, separate restrooms for staff and visitors, and required parking facilities, often either adjacent or built into the building. If there’s insufficient parking, valet services are hired for busier days to park vehicles at nearby lots.

Security is paramount, with both hired security and continuous monitoring inside the club and on adjacent premises. Surveillance systems, often equipped with facial recognition, help manage any issues and deter banned individuals. These measures ensure a safe environment for all guests.

The regular staff reaches about 30 people, with additional cooks, cleaners, and security hired for specific events.

Given the scale, these clubs require significant investments for renovations, infrastructure, equipment, furnishings, and decor. This level of expenditure often makes it necessary to own rather than rent the building.

These clubs host themed parties, corporate events, dance nights, karaoke contests, and more. DJs and performers of various genres are brought in. These venues are also popular for dance events like Latin, tango, salsa, ballroom, and rock-n-roll nights.

Getting Started

Starting any business, especially a nightclub, requires familiarizing yourself with the laws in the state where your club will be located. Our company is based in San Francisco, and we are well-versed in California’s regulations concerning nightlife venues and events.

San Francisco is one of the top global cities for youth tourism. In 2018 alone, the city welcomed 22 million tourists. This includes both leisure and business visitors attending events, conferences, and meetings. Just mentioning major companies that regularly host events here—like Microsoft, Google, Apple, Uber, Facebook, Twitter, Tesla, Oracle, and Salesforce—shows how significant this city is. Events like the Game Developers Conference attract a young, dynamic crowd seeking not only professional engagement but also quality entertainment.

This group represents affluent, high-spending business tourists.

To understand the demand and standard of clubs currently operating in San Francisco and other U.S. cities, a quick tour of their websites is enough. The impressions gained will provide a benchmark for the quality and style needed when opening your own venue.

• http://playlandbar.com – Play Land Bar’s website. A popular club-bar, known for its ideal location.
• http://bootiemashup.com/party-city/sf/ – Bootie Mashup lounge club. Mid-sized, yet successful thanks to its central location in the business district.
• https://www.templesf.com/ – Temple San Francisco; a large yet very cozy club with multiple dance floors.
• https://www.arenasf.com/ – Arena SF night club. Cozy, well-located, with its own parking lot.
• https://asiasf.com/danceclub/ – Azia SF, an upscale club. Although not one of the largest in San Francisco, it can host up to 800 guests, with even more on concert nights.
• http://boulevard3.com/ – Boulevard 3. Located in Los Angeles, a city known for mega-clubs that can accommodate up to 5000 guests.
• http://taolasvegas.com/ – Tao in Las Vegas. This prestigious club can accommodate around 3000 guests when seated, and up to 5000 if configured without tables or seating.

To gauge a venue’s popularity and profitability, try to visit it on a Friday, Saturday, or Sunday. If you can't get in, it's likely highly successful.

Club Opening Process

Liquor License

If you think event ticket sales are the main revenue source, think again. The primary income driver is alcohol sales, so obtaining a liquor license is essential. Applications should be filed immediately after completing renovation plans.

For this business, remember there are licenses for beer and wine (lower-alcohol options) and for hard liquor. The first costs between $12,000–$25,000 and takes 2–4 weeks, while the second can reach $250,000 (for 1000 guests), requiring up to 60 days to process. Prices directly depend on club capacity and size.

There’s also an option to transfer an existing liquor license when purchasing an active club. However, beware that profitable clubs are rarely sold; low-performing, loss-making, or those with a bad reputation may be on the market. While programming and decor can be updated, shedding a bad reputation can be challenging.

Law and Order

Thinking the licensing fees are too high? These costs are investments that pay off, provided you comply with all laws. Law enforcement closely monitors newly licensed clubs, often conducting undercover checks. Agents posing as guests may move through the club to inspect compliance: no alcohol sales to those under 21, no overcharging, no theft, no overcrowding, etc.

Alongside legal compliance, you’ll need to develop appealing programs and events for guests. In a popular club, license costs are quickly recouped: with a base cost of $25 for a bottle of liquor, the selling price to guests may increase significantly, with guests often paying $225 per bottle. When managed well, the license can pay for itself within a few months, with alcohol sales continuing to bring in revenue.

Business Plan

The initial business plan usually begins when designers and architects draft the renovation. This includes capacity and seating calculations, which also help estimate the liquor license cost. A completed project budget helps set aside funds for renovations, equipment, and furnishings.

Once these steps are completed, it’s time to focus on other expenses and tasks. Hiring staff is one of the most crucial tasks, with managers typically hired first. Their role is to oversee and complete renovations, handle inspections, make purchases, and prepare reports.

As the project nears completion, consider launching a promotional campaign, and about a month before opening, start preparing for the Grand Opening.

Key preparations include:

• developing a website where customers can reserve tables, book events, and VIP rooms;
• purchasing, installing, and connecting audio (sound) and video equipment;
• creating a program schedule for at least one month ahead;
• inviting artists, DJs, and go-go dancers;
• equipping bars and kitchens according to the selected menu;
• negotiating with suppliers for alcoholic and non-alcoholic beverages, as well as beer.

How We Can Help

Our company has substantial experience in executing such projects, and we are ready to provide comprehensive support, including:

• finding a suitable building to buy or lease;
• connecting with architects and designers to develop renovation and re-equipping plans;
• preparing documentation and obtaining a liquor license;
• contracting with renovation companies;
• obtaining equipment installation permits;
• managing the procurement of building materials, furniture, equipment, food, drinks, dishware, uniforms, and supplies;
• recruiting staff—from top managers to security personnel;
• signing contracts with outsourcing companies for security and cleaning services;
• contracting with entertainment agencies;
• preparing an event plan for the club’s opening, working with PR and advertising agencies.

All work is planned in advance, conducted according to the contract, and we provide a full report on all activities and expenses. To help avoid common mistakes in the first months after opening, our team is ready to offer management and financial oversight services.

Our Process

If our proposals and terms interest you, you’ll need to come to San Francisco to finalize the contract. Here, we will select a property that aligns with your capabilities and preferences. Once the property is agreed upon, we’ll create an initial business plan, followed by a final plan after the design project is complete. We’ll also handle registration, obtain all necessary permits, and appoint a manager to oversee preparations and the club's grand opening.

With this level of support from experienced professionals, you can feel confident about the success of your new venture—not just as a business but as your pathway to American life. Why? Because opening a nightclub is a recognized route for securing U.S. residency, as it fits within programs designed for investors who are ready to create new jobs.