Could cover charge sink Underground Atlanta?
June 24, 2008 at 9:30 am by Scott Henry in NewsIf you haven’t been to Underground Atlanta lately, you may be shocked to hear that Kenny’s Alley, the urban mall’s nightlife district, is very much alive and well.
After a false start in 2005, when six new nightclubs debuted on New Year’s Eve and then saw their business gradually fizzle, the Alley has finally found success as a destination for a largely African American crowd. Such clubs as Sugar Hill, which features live neo-soul and R&B; Motion, with its large dance floor; and hip-hop lounge The House have managed to boost weekend attendance to more than 5,000 – a healthy number for a space that has floundered in recent decades. And recently, the popular Buckhead nightclub Frequency relocated to Underground.
But now the venue’s management plans has announced plans to begin charging a $2 cover to enter Kenny’s Alley, a move club owners fear will upset their delicate formula for success.
Two bucks may not sound like much – especially when most of the clubs inside are charging $20 admission – but longtime promoter Richard Dunn, a partner in Sugar Hill and Motion, says it’s not so much the amount but the impression it gives. Folks will pay handsomely to enter a VIP room and they’ll certainly shell out for top-shelf liquor, but being asked to pay $2 for the privilege of standing in line to get into a club is somewhat insulting, he says. And hot women – the prime commodity at any club – are not accustomed to paying for anything.
“It’s just not cool,” says Dunn. “It’s not going to have a positive outcome.”
Underground managing partner Dan O’Leary says the charge is needed to offset the cost of additional security to handle the larger crowds.
But Dunn says club owners offered to absorb the extra cost or pass it on to customers via higher drink prices – anything to avoid a door charge – and were turned down. The reason, he suspects, is that Underground’s management simply wants a new revenue stream.
O’Leary dismisses the concerns as overblown: “Maybe it will discourage some people, but it won’t kill business.”
Dunn, however, says that just when the Alley has finally built a solid clientele is a bad time to throw a $2 curveball.
“It’s a big risk, but it’s the clubs that stand to lose,” he says. “If this doesn’t come out, I’m screwed till next summer.”
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June 24th, 2008 at 9:06 pm
Let’s see, take a struggling enterprise and make it more expensive in a weak economy. Yeah, that always draws people like moths to a flame.
Kind of like taxes.
It could be a death knell, but ti may help by keeping out some of the people who make it less attractive to go to some places.
Unless I am riding a roller coaster, it is a little insulting to pay a cover to go wait in a line.
Just the perspective of a doorman from back in the day who watched people walk away from my door and go to others over $ 2.