This article was originally published on Forbes.com on May 9, 2022.
“Everybody wants to party.” That’s how Eric Langan, the CEO, president, and chairman of the board of RCI Hospitality Holdings, Inc., the only publicly traded company that owns gentleman’s clubs, describes the state of his business today. Pandemic? Fuggedaboutit. Two years of dark news, quarantining, and masks have resulted in a surge of consumers who want to go out and have fun. The strip club business may not be pandemic proof, but according to Langan, it’s pandemic resistant. After an initial dip early on in the pandemic, the company has come roaring back and is doing better than ever. According to Langan, its suite of businesses are on track to generate between $260 million and $280 million in revenue in 2022.
You might not have heard of RCI Hospitality Holdings, which trades on Nasdaq under the symbol RICK, but you may have heard of its establishments, which include over forty strip clubs and restaurants. Among its gentleman’s clubs are Rick’s Cabaret and Vivid Cabaret in New York City; Club Onyx, which has outposts in Houston, Charlotte, St. Louis, and Indianapolis; and Tootsie’s Cabaret in Miami. (“The place is so big they've got a giant room in the back for making the furniture upon which the laps get their dances,” this reporter discovered during a 2015 visit.) There’s also Bombshells, a military-themed chain of restaurants and bars (think: Hooters, but the servers wear fake ammunition belts instead of orange shorts) with multiple locations across Texas. The company brand is a mix of food, booze, and attractive women. The company went public, as Rick’s Cabaret International, in 1995 and hasn’t looked back since.
“They’re having fun,” he notes of the twenty-something to forty-something customers who are frequenting his establishments. “They’re way more into experiences than things. They want human interaction. They want to be seen. They want to be heard. They want to flex in front of their friends. It’s about being out and feeling like you’re somebody.” The pandemic isolated people, restricted their freedom, kept them apart. “This is just a retaliation against that lack of freedom,” he observes. “Now they’re expressing their freedom in every way they can. I think it’s great.”
So, how do you pry the young men whom comprise his customer base off their sofas, away from their Netflix shows, out of their homes and into his clubs and restaurants to spend their money? Thanks in part to Langan’s son Colby, the company’s director of administrative operations, who introduced his father to NFTs, “the crypto world,” and web3, RCI Hospitality Holdings is strategically employing a series of tech-focused initiatives. There’s AdmireMe, a kind of OnlyFans for dancers—or “entertainers,” as Langan refers to them—that connects dancers to customers; Tip-N-Strip, an NFT-based points-program with VIP benefits; and the company’s next earnings call, on Monday, May 9, 2022, at 4:30 p.m. ET, will be held on Twitter Spaces.
“We’ve become a mainstream company,” Langan asserts. “Yes, we have strip clubs, but really we’re in the cash flow business.” Of course, his job isn’t like every other CEO’s job. (“I’m the head janitor,” he says.) Active on Twitter, he’s not one for holding back. “Diamond Cabaret Denver has so many beautiful entertainers tonight,” he tweeted not long ago. “I can’t decide if it should be a blonde or brunette kinda night. What do you think ?” In another tweet, he advised his followers: “Just remember you can take the stripper out of the club but you can’t take the club out of the stripper !!!” No matter. In the end, this is the strip club (and restaurant) business. After the Twitter Spaces earnings call, he’ll be mingling with investors at Tootsie’s, along with a few dancers.
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