RCI Hospitality Holdings, Inc. (NASDAQ:RICK) Q1 2023 Earnings Call Transcript

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And we start to look at their financial, and we said, well, we can cut this, we can change that. And again, we can make this thing. This thing could actually have better margins than a Bombshells, because we get all the alcohol, but we don’t have to have the food. We don’t have to have the labor cost, because all that rented out. So we get basically paid for the space and they provide all the food product, which is our lowest margin in the Bombshells, but we get all of the alcohol. We get all of the sports stuff and we can make our own beer, which cost us even less. So the keg instead of paying $120 a keg, we can get kegs for $30 or something making them ourselves. And that’s kind of how we got started in that and it’s evolving. It remains to be seen.

We may build this into a concept that we may decide to build more of if the returns are right on it. Like I said, it’s early. And it’s a good way for us to get a Bombshells into the Denver market right away. So we can start training staff. We’ll have our cooks ready we do all our training at the food hall when we get ready to open up the Bombshells we’re building out there.

Mark Moran: Fantastic, phenomenal answer. As a very hard consumer of energy drinks I cannot tell a difference. Next up we have Hot Girl Capital and I would just take a moment to encourage everyone to raise your hand if you have a question, because we’re starting to get towards the end of our Q&A segment. Hot Girl Capital. Take it away.

Unidentified Analyst: Thanks, Mark and congrats on a great quarter. I’m super curious if you guys are going to do any like celebrity or brand collaborations?

Eric Langan: Well, we’re talking about that with the casino right now for sure. Definitely what admire me once we get a viable product we will definitely be doing some stuff with some influencers in that regard for sure. Mark and I have been brainstorming a few ideas around our new merchandise store that we’re getting ready to launch. So yes, there’s definitely going to be opportunities for that. And as we’re getting €“ I’m still relatively a baby on Twitter. I was €“ my one-year anniversary was the other day and I said, well that was just the day I signed up. That wasn’t really my one year in or €“ my real one year anniversary of sometime in May after I met Mark. And he said, why don’t you try doing this and do some of this stuff.

And then of course they wrote me a little bread and got me some stuff going. And the more I started this. So I think May is probably really my first one year anniversary. So hopefully, we’ll €“ we can €“ they keep telling me 10,000 is the magic number I got to get. You have to get to 10,000 cards. You have to get 10000 followers. So hopefully, by May we will be there. I think definitely by November, when we opened the casino up we’ll get there. But yes definitely looking at some different ideas with influencers and doing some collabs on certain things to bring people not only into our clubs or restaurants but also into the casinos as we move forward.

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