Clinton Byrd, Author At Always The VIP

With all the economic turmoil from the haphazard tariffs to declining tourism, over 1.1 million jobs lost in 2025, and the lowest job growth since 2010 after the , businesses across the U.S. are facing mounting, unprecedented challenges in both supply and demand. In 2024, New York saw $79 billon is economic impact from tourism alone. In 2025, a $4 billion loss is projected due to declining domestic and international travelers, impacted by aggressive foreign policy and U.S. entry requirements. Learn how tariffs are impacting the Hospitality industry Fortunately, New York legislators have been coming through with pioneering ways to open new opportunities for entertainment businesses in New York. As a trusted nightlife expert and event promoter in NYC, I always track the latest trends affecting the hospitality industry. Especially those that may help drive growth and incremental revenue for partnered bars, clubs, and restaurants. l A7040-B, wherein the New York State Liquor Authority (SLA) introduced a new liquor license category! I'll break down everything you need to know, including the most important facts, how to obtain one, and tactics to kick-start a For-profit club business to obtain this new permit. The Launch of Assembly Bill A7040-B Traditionally, on-premises liquor licenses were primarily for retail establishments, such as bars, restaurants, hotels, and nightclubs. In 2025, New York made strides by including over 14 additional types of Adult Recreational Businesses. Among these expansion efforts was Assembly Bill A7040-B, sponsored by Senator Michael Gianaris and Assembly member Albert Stirpe. Assembly Bill A7040-B was signed into law on August 22, 2025, and went into effect on February 18, 2026. This new legislation introduces a legal pathway for “For-Profit” social clubs to obtain on-premises permits for the first time in New York State history! What Assembly Bill A7050-B Changed If you have ever been in a co-working space, like WeWork or Knotel (one of my former clients), then you are no stranger to enjoying complimentary beers and wines in its lounge regularly. Image of a busy communal Dining Space. And, if you are marketing savvy, you may realize that these alcoholic "gifts" are typically promotional in nature – brand activations often misinterpreted as membership perks. However, you would rarely find liquor for sale at these for-profit, membership-based businesses because a permit for their business model did not exist. They were essentially prohibited from selling or profiting (directly or indirectly) from liquor. Only non-profit clubs (e.g., Yale Club and Metropolitan Club in NYC) have enjoyed access to liquor permits, under special “Not-for-Profit Corporation” or “Benevolent Orders” categories of the ABC laws: One-day “Charitable Permit” (Section 99) On-premises "Club License" (Section 64). To be categorized as a non-profit club, at least 65% of its "gross receipts" must come from member sources (e.g., membership dues). Otherwise, its tax-exempt status could be lost, severely reducing any benefits associated with making liquor sales a core service. Eligibility Criteria For A For-Profit Liquor License Assembly Bill A7040-B legislation allows for-profit clubs to expand their business models with new revenue streams from on-premises alcoholic beverage sales. It also effectively incentivizes non-profit clubs to consider changing their status. However, to be eligible, the social club must fall within 8 types of special interest categories: recreational social patriotic political benevolent communal workspace corporate dining space athletic Additionally, there are three requirements to qualify for and maintain a For-Profit Club license: Pay an annual $20,000 licensing fee. Provide a list of at least 100 “bona fide” members upon application. Maintain at least 100 “bona fide” members for each renewal. “Bona fide” members are members who pay annual dues. A list of these dues-paying members must be available upon request for auditing purposes, and if the number of “bona fide” members falls below 100, then the club is no longer eligible for this special For-Profit Club liquor license. Use the following infographic as a quick reference guide for the main eligibility criteria of New York's For-Profit Club Liquor License: NY For Profit Club Liquor License Eligibility Criteria Quick reference infographic Clinton Byrd Always The VIP Note that for-profit clubs that operate solely as corporate dining establishments are exempt from the 100-member requirement. The Real-World Impact The For-Profit Club liquor license has the potential to be a game-changer in NYC, molding the nightlife industry in a completely new terrain. This is because it opens the doors for membership-focused businesses to compete with non-profits as well as traditional nightclubs, bars, and event spaces. A busy club lounge with professional members chatting and enjoying cocktails. For example, for-profit clubs would typically have to hire catering to offer a cash bar at their events. Since the for-profit club could not monetize the sale of liquor, caterers enjoyed all the profit from this revenue stream. Alternatively, for-profit clubs often host events (e.g., for networking events, happy hours, etc.) at licensed bars, restaurants, or event spaces where they would likely choose from a few options: A cash bar with a minimum spend. Pay for an open bar covering each attending member. Rent the space with one of the above options for bar service. In none of these scenarios could the for-profit club negotiate a kick-back or commission on food & beverage sales to profit from the sale of liquor - again, this was prohibited. Additionally, establishments like bars, restaurants, and event spaces typically have limited operating hours when they can be open to the public, which further limits their time when they serve liquor. And, outside of nightclubs, many venues do not even remain open all the way until the legal deadline for serving liquor, a.k.a. "Last Call," which is 4 AM in New York. On the other hand, social clubs have more flexibility for scheduling events, as long as they adhere to local regulations, such as noise ordinances, zoning laws, and specific licensing restrictions (e.g., NYC Noise Code restricting sound levels between 10 PM and 7 AM). This is a significant advantage over venues with traditional operating hours, allowing social clubs to better serve their members. The Bottomline Ultimately, a For-Profit Club Liquor License creates more competition for businesses like bars, event spaces, and even catering companies. If social clubs can now manage and benefit from their own alcohol sales, they do not need these middlemen. This new alternative may eventually deal a significant blow to businesses that rely on regular "corporate sales" from bookings by clubs and social groups. However, for consumers, this may be a win if more private social clubs become available. New entries could potentially fuel downward pressure on private club membership prices and encourage improved service offerings across the industry as competition proliferates. An Ultimate Hack For Launching A Club The For-profit liquor license has very simple criteria to meet. If we limited ourselves to thinking the only ones who could easily benefit from this bill are the "Soho Houses" or non-profit clubs interested in switching to "for-profit" business models, that would be a misstep. There is a big digital world out there. Any brand worth its salt is marketing through different channels, and grassroots, community-led initiatives are among the most viral. Even micro-influencers can command thousands of followers in their given niche (I have over 16k with minimal effort) - making them valuable direct paths into target audiences. With that in mind, a For-Profit Club liquor license creates a great opportunity for individuals or organizations who have successfully monetized their communities - its an ultimate hack for launching a For-profit club: Membership platforms (e.g., Patreon, OnlyFans, Substack, etc.) Communication apps geared toward communities (e.g., Telegram, Slack, Discord, etc.) Social media and Content-sharing websites (e.g., Reddit communities, YouTube "Channel memberships," etc.) In my expert opinion as a growth strategist, partnerships will be key to supporting the launch of a new for-profit club (which would likely be a separate business entity, such as an LLC) - brand equity is essential in this space. Partnerships with well-established influencer(s) and communities can be invaluable - converting their existing subscribers into "bona fide" members would be a fast path to seeding loyal members and easily qualifying for the For-Profit Club Liquor Permit! However, getting enough members to qualify is just one of many hurdles to consider when creating a For-Profit Club. Considerations For Entering The Market Data shows there are 1,281 social and country clubs in the NYC metropolitan area, which rake in approximately $1.6 billion in revenue. In NYC, a handful of private, for-profit club brands lead the industry, such as Aman New York, Zero Bond, Casa Cipriani, and Soho House New York. These premium clubs have typically hosted member-only social events at their owned properties and enjoy any sales it generates (e.g., food and beverage sales) - a significant competitive advantage. For movie buffs, they have a similar business model as “The Continental Hotel" in the John Wick movie series. But their membership fees range anywhere between $3,000 to $200,000 and up. So, demand is present - there is a monetary incentive for those considering breaking into the For-Profit club market. A handful of members could easily cover licensing fees, but there is more overhead to consider. Establishing a bar demands a significant ongoing investment. The For-Profit Club liquor license is an on-premise permit, which inherently carries many additional requirements to comply with: Zoning and Land Use Certificate of Occupancy Liquor Authority Regulations (e.g., 200 and 500 foot rule) Building and Site Requirements (e.g., fire safety) Health and Safety (e.g., food safety certifications) The list goes on. Owning and operating a bar is a serious venture. In comparison, managing a social club alone is a cakewalk. A Big Challenge for Social Clubs Even if you can meet the 100-member requirement to obtain a For-Profit Club Liquor License, you must retain them with high-quality activities and events. This is justified and funded by the paid membership. Hence, one of the biggest ongoing challenges for any successful social club is actively creating, administering, and executing exclusive events for members - this requires the right background and often special experience. Event planning is a profession that encompasses logistics, budgeting, promotion, advertising, and much more. Additionally, effectively utilizing marketing technologies, such as CRMs, ESPs, and ticketing platforms, is a necessity - often missing hard skills for would-be organizers. I've seen many try their hands at managing events, from bar managers to restaurant owners with great ambitions, only to encounter failures in producing successful events. A few public examples of failed events include the notorious "Fyre Festival" by Billy McFarland in 2017 and the "Apocalypse NYC" event by Greek stage director Alexander Raptotasios - a flop, bombing at the 3 Dollar Bill BK box office in 2024: The "Fyre Festival" was a global flop that went viral, but turned out to be a logistical nightmare rife with fraud. The "Apocalypse NYC" was a local flop - self-proclaimed as "highly anticipated," but suffering from a lack of marketing strategy, poor ticket sales, and low attendance. Both were case studies in the results of poor event planning and inept leadership, riddled with missteps that seasoned organizers and marketing experts would have prevented. So, if you are going to take the entrepreneurial leap with a social club, be sure to have a long-term business plan, sufficient funding, competent legal advisors, and an experienced operational team to be successful! Big kudos to lawmakers who are actually doing something to directly help small businesses and lower barriers to entry into markets. Continue leading by example. You can find the official details and apply for a For-Profit Liquor License in New York at the New York State Liquor Authority. If you want more creative tips on how to open up new revenue streams for your business or improve existing ones, feel free to contact me. Or connect with me on Instagram or LinkedIn. And be sure to bookmark this blog for more expert insights into the nightlife industry, noteworthy trends, and unique marketing tips!

Author: Clinton Byrd

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