Marquee is a successful New York City's nightclub located in the Chelsea area. It was launched by Noah Tepperberg and Jason Strauss, two native New Yorkers who aftertheir return in the city in 1997 with their diploma in hand, decided to start their own business after having been promoters for nightclubs during their adolescence. Meanwhile, they opened twonightclubs, one of which was the Suite 16, which became one of the hottest clubs from 2001 to 2004. After the closing of the club, they set up a new project aiming to convert an old 5,000-square-foot garagebuilding into a club being able to accommodate 600 people. Marquee opened its doors on December 2003 and subsequently known a great success. The club has been called one of the hottest nightclubs inNew York City ever. Marquee celebrated is fifth anniversary in 2008. In parallel, they created their own events and nightlife-marketing agency in 2001 called Strategic Group.
Despite thefame of the club and its big hit, the two owners see the rent increase more and more, reaching exorbitant amounts as well as tje promoter fees. Moreover the insurance become much more higher too anddepends on the size of the club which is rather big concerning Marquee. We also have to know that nightclubs need both liquor and cabaret licences to accommodate people. In 2006 the net income was$3,381,000 and $2,412,000 the next year. Marquee was touched by a drop of its net income of 28,7%. Finally, the typical lifespan in Manhattan for a nightclub is proved to around 18 months. It is hard tokeep loyal such a big clientele who look for the hottest and hippest spots after so many time. In order to protect their investments, the two owners are thinking about three possibilities. The first oneis to continue the business in the most effective way possible, figuring all the problems out and holding out as long as possible. The second one is to keep the same staff and policy and move on to...