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Private equity rears their ugly head in every industry, and no industry is immune. Nightlife is a recent victim. PE will stop at nothing to convert unique nightlife concepts into the Walmart of hospitality. Stale, boring, copy pasted but optimized for StAkEhOlDeRs.
#hospitality #nightlife #bar #bars #brand #businessowners #nightlifevibes #hospitalitydesign #hospitalitylife
Transcript
Private equity is going to ruin nightlife. And if they haven't touched your favorite bar yet, they will. Private equity tends to ruin everything they touch. And the nightlife industry is not immune from its Medusa like gaze. Over the past ten years, private equity has dumped $90,000,000,000 alone into the nightlife industry. And private equity tends to do three things really well. They optimize margins, they cut costs, and they eliminate any soul from a business. Take Better, for example. It was always a little bit risque, a little bit kitschy, but it was family friendly. Private equity came in 2011. They made it more sexualized, turned it into a best club, and alienated half of their customer base. And if half of your customer base feels unwelcome and the other half feels sleazy going in, then you have a big problem, which is why they filed for bankruptcy in 2025. Or who remembers Barloui? They were a great little gastro pub with some cool martinis. Private equity came in, turbocharged their expansion with debt, cost cutting, and margin optimizations. Reviews got worse, so they went bankrupt closing one third of their stores, and this was before COVID hit. There's a simple rule I live by, and it's that once a business is purchased by private equity, that business's days are numbered. Profit squeezing comes in all these standard forms, weaker drinks, worse service, bad interior design choices. It looks like they were copy pasted across all locations. These are all signs that your favorite spot was bought by a suit who doesn't understand that brand's lineage history or what the customers actually want.