Speakeasy... Should I or shouldn't I?

Well, I'm in no position to comment on the business opportunities in South Africa, but I would laud any attempt to put together a quality drinks program anywhere in the world. I’m not sure what you mean by “speakeasy,” however. Strictly speaking, a “speakeasy” is—by definition—an illegal drinking establishment or liquor store. Is that what you have in mind? If not, then maybe it would be better to set the term aside. (I realize that the term is being thrown around a quite a bit—mainly to describe small bars that don't sport conventional storefronts—but it’s way past silly, now.)

Regardless, I would conjecture that your first concern will be fundamentals, all of which are specific to your geographic locale: cost of real estate in your market, locally accepted drink prices, local market size and dynamics, regulations for drinking establishments, &tc. Can you find any realistic way of putting together a profitable cocktail-oriented business under those circumstances? My guess is that you’re going to need somebody experienced in your marketplace to help answer that question.

You know I'll be there...Occasionally...It is a rather long trip...but I think it could be a good idea...There must be at least a couple of people in Joburg that know how to drink!

Gareth If you pull this off youl be my idol.

Its honestly been a longtime dream of mine opening a proper cocktail bar in South Africa. I have been out of the Joburg bar scene to long though to give my 5 bobs worth but I'l share my thoughts. In a market where

Is the South African consumer group ready and educated enough visit an establishment like Pegu or Milk and Honey? without any real competition it would be viable to say you can draw crowds from from P town and Johannesburg but is there a market? On my last trip to Joburg I talked my g&t drinking friends into trying a round of  negroni and had to explain to the bartender how to make it. After my friends gasps at paying R 65.00 for a drink they hated it... and said I was wierd. (they are fairly educated ppl). In EVERY SINGLE BAR I had to explain how to or wait for the one bartender that can make a manhattan and on top of that had to explain that Jack is NOT a frikkin bourbon and its not going in my drink. I believe there is a nieche for an American speakeasy style bar, my worries are the consumers. In a country where Absolut is premium, a double brandy and coke is 15 bucks (thats 2 dollars) and Jack is bourbon I do not see ppl traveling and paying the required R70 for a basic drink.

BUT I have seen an increase of the availability in premium and previously "exotic" products and bartenders nowadays say to me: Aaah youre probably one of those guys that like gin marinis" meaning someone else is drinking them. The fact that the Mojito craze has even swept our continent (After I could not find lime in ANY bar 3 years ago)  and my mother orders them gives me hope( I do wish Dutchmen would stop calling them MOGEETO'S).  The south African market is growing steadily.

Lets say that you have the capital and means to start a venue like this in an area like Sandton, I think the question is when. Also I believe the Cape-Tonians will be more open minded to such a "new concept" venue and the tourist influence should make the markup required for these drinks  more acceptable.

 

All in All I believe its possible but youl need to get the timing and location spot on. Keep us updated on this one please!

 

  Hey there, Gareth.

  See if you can get your hands on a copy of the new Imbibe, because there's a really interesting story on Speakeasies. 

  Beyond that, I'm not sure what else to say.  Some become legend, some go really really really pear-shaped.

 

 

You should!

If you're interested, I'm blogging about opening mine  here: www.mixoogy.eu

It does have to be a business, though, not a labour of love or a charity work or an ego trip. It must make money. First, see if there is a gap in the market (yes, I think), then ask yourself if there is a market in that gap (only you can answer this, and ofn course it'll still be a bit of a gamble). Then go for it. And best of luck.

 

Cheers,

 

Philip.

Quick answer:

 

Pros

You're  a hero to mixologists/the mixology community, nice people like you, you get to play the boss, you may win some awards.

Cons

Not scalable (can't open a chain of them) , dependent on key staff, usually a slow, organic accumulation of guests so not usually a huge moneyspinner from the get-go, you desperately need to be able to get quality, obscure spirits at reasonable prices, you need a late licence.

I can't imagine any serious angel investor putting their cash in unless it was part of a bigger picture, i.e. if you could also buy the building, or if you planned to have a dumbed-down speakeasy-lite type concept which you could roll out into a chain.

Bear in mind, modern high-class cocktail bars and speakeasies are like Michelin restaurants, which also famously barely pay the bills and are often subsidised by their landlord, non-serious angel investors who like to pimp it, the hotel they're in, etc.

I tend to agree with Alex in that I do think of Speakeasies as a very American specific thing like I tend to think of Members Bars or Gentlemen's Club's as a very English thing (although I know they aren't exclusively). What I think you should look at is what level you want your place to be at?If you want it to be a business (As Mr Duff has mentioned) or a labour of love...more of a "basement bar" where you invite like minded people to enjoy some quality drinks. If you want it to be a business then without a doubt i think something a little more high profile than a "Speakeasy" would be called for...perhaps keep, as Alex said, the fun, mysterious aspect but you would need to create a bit of a buzz around the place (although I realise that this is the antithisis of what a Speakeasy is all about!) If you could set it up as a "must-go" venue where your clientel come (no matter how uneducated) to experience your unique offering on your terms, you might still have the freedom to do things your way.

If on the other hand you wanted to do this as more of a low-profile, industry and friends type of thing, then yes I think you might be able to do it providing your overheads were low enough to be covered by this limited clientel. Convince Guy to set it up in the Joburg warehouse...You could do an Industrial Chic style speakeasy!

Seriously though I think you should look at a business plan etc. that lays out exactly what you want to do and how you want to do it. Location will also be vital. As David said Cape Town might be more open to something like this (Although they also call them MOGEETO'S down there ) and it is a much more international city which would help but Joburg is where the money is!

All things considered I think there is definitely a place for what you want to do...For it to be a success though, market research will be key...as well as making it appeal to as broad a spectrum of people as possible without compromising your standards. Like it or not we don't have the market for a geek-bar in a place where a Franchise bar with 25 flavours of martini and a bottle of JC Le Roux are considered the height of drinking sophistication!

Thank you very much for your informative and constructive response. South Africa hasn't had a prohibition as much as it has had an exclusion to the cocktail culture. All of a sudden there are Patrons and Havana Clubs etc etc. The premium single malt crowd who are only allured by the price tag, very few are educated into Speyside, Islay and so on. The downside of making something so available to this kind of clientele is that they still do not have the foggiest clue as to what a Seelbach is or what an old fashioned is. If i open doors to anyone, I will land up serving below par drinks, because they will be requested. I do believe, in my small estimation however, that the foodie culture is large enough and cultured enough to A: learn and B: Appreciate a damn good drink. The staff issue IS an issue no matter what kind of bar anybody runs. This is a given. I could hopefully spend as much time behind the bar as my bartenders do and the training process will be rigorous. The word speakeasy for me is the best to describe the kind of bar I would like to open. Merely for the fact that I cannot take making poor drinks anymore and I'm pretty sure that many hedonists are tired of it too.

I actually read about a bar at sometime, that only rents low cost venues 6 months before the building was to be demolished/refurbished changed into a mall... you get the picture...nobody wants it so the rent was cheap. In these bars they had shebeen ( An African speakeasy) type of establishments.

The Decor and futniture was cheap, moveable and easy. The bar was semi Temporary and the licence was easy obtainable since it was not realy in busy neighbourhoods ,They marketed the concept underground and it started to gather a rather large cult following. 6 months everything was packed in boxes and moved to a different location, known to some unknown to others.

They were surprisingly succesfull, at least for a while. (I have know idea what happened to them nor if they still exist, but I can not imagine them losing much if they dont)

Its a consept that could work for the type of market you are aiming for and could keep the overheads low... Its way out there but it was always the type of thing I would love to try.

 

In SA one would have to cosider elements like safety etc though ;(

Damn... That's a cool concept! But ja... the possibilities of garnishing a Daquiri with a falling brick does spring to mind

this is an interesting article that briefly describes the difference between the "speakeasy" and the normal high-end bar in terms of profits/costs:

http://voices.washingtonpost.com/washbizblog/2009/01/the_great_cocktail_hunt.html?hpid=sec-business

btw, in reference to your last post, Patron is not considered a very good tequila.  it is the new Cuervo imho.  Don Julio and Partida are almost as recognizable and available and MUCH better.

cheers and good luck!

I have yet to taste the Partida tequilas but as soon as it lands, i'll be first in line for a tasting WHEN the top shelf Cuervos land here (Was supposed to be in November... tick, tock) I'll definately get stuck into them. But if patron is not good quality... then i cannot wait to taste the good stuff. I read the article and the posts made by the readers afterward. I'm salivating over the clientele that the American market has. If money was no object, I would open both an 'easy buck' bar as well as a 'speakeasy'. The easy buck bar for the masses who want to drown themselves in Jagermeister and cause a big punch up because it's Tuesday, then a bar that not anbody can get into and money has NOTHING to do wih it. Money will NEVER buy class and most of the money I've served have neither class nor taste. I'd rather open the bar that can eek me out a salary and pay overheads mostly because I know in New York you might have about 2000 potentail clients who will A: Pay top dollar time and time again and B: you can make drinks with a clear conscience. No maraschino cherries put into a cosmo thank you. The bartending craft is also a very underestimated and underpaid craft. I've been doing it professionally (or to the best of my ability) for a number of years and we as a profession will never be taken seriously until some artisans appear. Which, fortunately for the U.S. and Europe, there are some heavyweights making big waves and being rewarded for it (I hope). I have a big belief that the South African bartending community is very underrated as well as under paid. Why? Because every single bar here is an easy money bar. Why pay somebody a decent salary if the drinks they make are bloodgeoned with blue cuarcao and sourmix? Any border-jumping, uneducated illegal immigrant can do that! I'm sure that any serious South African bartender would like to have a bar behind them, in their own back yard, that they can be proud and honoured to be associated with and priviledged to have on their CVs. How many former Milk and Honey or Death & Co. or PDT bartenders aren't proud to have those establishments name on their CVs?

"Any border-jumping, uneducated illegal immigrant" Aaaah, the old continent...