The world’s leading cities have seen more private members’ clubs open in the past 10 years than at any other time. Knight Frank’s research team speaks to five industry insiders to uncover the secrets of their success
“One of the things I really appreciate is that at the Groucho there’s always someone behaving even worse than me.”
That was chef Anthony Bourdain speaking to The Independent in 2005. The hedonism of one of the world’s most famous private members’ clubs is the stuff of lore, but the opening of the Groucho was about more than celebrity tittle-tattle. It was the beginning of a cultural movement, generating a new era of private members’ institutions from the gentlemen’s clubs that first emerged in the 18th century – and which still dominated London’s scene well after their original political, cultural and social power had ebbed away.
This fracturing is still in motion. In the past decade, more clubs have opened than at any time in history. Many still promote their fair share of hedonism, but the industry has moved with the times, focusing on wellness and impact, for example. Despite the many successes, closures are common. It takes more than a brand, a building or a great chef to make a successful club, as some wealthy property developers and hoteliers are learning.
Why join a private members’ club
A beautiful building, sleek design, amazing food and a stellar programme are no guarantee of success. Clubs are selling access to a community, or more specifically, to a group others want to join.
“There’s an old adage about clubs. You join for the facilities; you stay for the people,” says Jamie Caring, Founder at Sevengage, a lifestyle and hospitality marketing consultancy.
The wealth trap
Clubs aimed almost solely at the wealthy are proliferating. After all, what owner doesn’t want packed tables spending thousands of pounds on wine? Membership fees of five figures a month exist, but this approach comes with big risks.
“People think the property itself and how much they’ve spent on the fittings is why people will join,” says Martin Raymond, co-founder at The Future Laboratory and founding member of the Groucho. “But these are loyalty clubs masquerading as members’ clubs, boltholes for the elite without a reason for the elite to bolt there.” Caring agrees. “Set the fees too high and you lose that coterie who are less wealthy but are younger and more cultured, charismatic and social. The business crowd wants proximity to the dynamic, buzzy, vibrant crowd that could otherwise be priced out.”
Sell memberships, but don’t sell memberships
To nurture community many clubs use an ambassador system to get movers and shakers to bring friends through the doors. The Arts Club retained Gwyneth Paltrow as a shareholder and Mark Ronson as music director, recalls Marcus Watson, an Arts Club non-executive director and co-founder of the London network club, Adoreum. “We got that celebrity element right early on, then we were able to attract high-net-worth business leaders.”
But organic growth through word of mouth doesn’t come via celebrities. A membership committee formed from a core group in the club’s target industry or neighbourhood gives members a stake in the kind of environment and social atmosphere the club is creating. That sense of ownership, in turn, provides a powerful incentive to spread the word.
“Clubs don’t sell memberships,” Caring says. “That’s what workspaces and gyms do. Clubs are based on a model where you create something amazing, you drive huge desire around being a member, people flock to you, and you choose the people you want.”
Nail the programme
“One of our biggest expenses is programming and it is the single biggest source of conversion for new members,” says Nick Hamilton, Co-Founder of The Conduit. “Members bring guests for the programme. When those guests come they see who’s at the club and they get it.”
Indeed, good programming often explores a niche or has a distinctly local feel. For example, The Conduit is focused on positive impact, with challenging events that often include journalists fresh from reporting in conflict zones. That’s The Conduit’s audience’s requirement, and the owners know how to cater to it.
Meanwhile, The Century Club in Soho offered members lessons in Japanese bondage, Shibari, in the run-up to Valentine’s Day. Director of membership Suzette Field explains: “You can’t be completely square and be a club in Soho – it doesn’t make sense. My advice to members’ clubs is to put something on that people aren’t going to find anywhere else.”
Be a club, not a hotel
Members’ clubs occupy a unique place in hospitality – where some members will visit their club almost every day.
“Hotels are transient places, where you see people intermittently,” says Caring. “Clubs are places where you see the same people every day. Obsequious, grovelling, ‘yes sir, no sir, absolutely sir,’ is not what people want. A club is supposed to be a home away from home.”
Interested to know more? Read The Private Members Clubs Report in full here
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