Strategy - Revenue Diversification
Analysis of current and potential revenue streams, growth opportunities, financial viability thresholds, and programming performance.
Current Revenue Streams (Ranked)
- Alcohol sales — primary revenue source
- Ticket sales — very important, core event revenue
- Food sales — launching soon with kitchen opening
- Currently via local pizza place — very low margin, temporary solution
Growth Opportunities
Kitchen-Enabled Revenue Expansion
Immediate menu on launch:
- Hot dogs, pizza, toasted sandwiches, cheese plates, platters
- Hot drinks: coffee, tea, hot chocolate (for non-drinkers and warmth)
New programming enabled:
- Sunday morning market: community atmosphere, catering to different dayparts
- Weekday after-work casual dining: 4pm opening, low-overhead, food-focused
Rationale: Midweek customers don’t drink much; food removes attendance barrier.
Merchandise
Fun, cheeky, trusted brand with strong community connection. Low-complexity revenue line with brand-reinforcement benefits.
Functions and Private Hire
Opportunity: Birthdays, hen’s/stag parties, celebrations
Assets to promote: Cocktail bar (bookable), indoor garden space (bookable), functions brochure (underutilised)
Comparable strategy: Another bar successfully pivoted to focus on function bookings as primary revenue
Advantage: Higher show-up rates — “the function is important to their friend”
Ticket Upsells
Current mechanism: At booking time, TryBooking system prompts buyers whether they want to pre-purchase pizza or cocktails
Benefits:
- Pride receives payment immediately (TryBooking processes settlement)
- Pre-purchase increases event show-up rate (customer already invested)
- Discount incentivises purchase while yielding revenue
Tiered Ticket Pricing
Current structure:
- Free
- Hardship (50% off)
- Concession
- General admission
- “True price” (above GA for those with means)
Note: Refund requests rare; goodwill refund policy generous. Customers trust the venue.
Loyalty and Membership Leverage
PinTuna digital loyalty programme (underutilised):
- 5% discount on in-venue purchases
- Entry requirement: Instagram follow + email sign-up
- Scanned at register for automated Square integration discount
- Digital membership wallet cards planned
Additional assets (underutilised):
- Paid membership program
- ~200 shareholders (infrequently communicated with)
- TryBooking email database (8 years of ticket buyer history)
- Birthday celebrations on stage (Saturdays — existing tradition)
Postcode Data and Customer Origin
Strategic insight: If significant customer volume from outer east Melbourne validates Frankston expansion case
Capture method: Digital ticket sales and PinTuna loyalty scanning already enable postcode tracking. Recommend postcode capture at registration.
Customer Feedback and Demand Sensing
Tool: Suggestion box with direct prompt: “What event would get you here more than any other?”
Simple, direct, low-cost way to surface genuine demand without relying on staff intuition.
Financial Reality and Viability Window
Weekly Survival Target
$25,000 minimum gross revenue:
- Wednesday: $1,500
- Thursday: $2,500
- Friday: $6,000
- Saturday: $15,000
Historical performance (FY2023): Averaged $38,500/week Current state: Dipped approximately 50% from FY2023 baseline
- Good weeks: $25,000–$28,000 (at or just above survival)
- Bad weeks: ~$20,000 (below threshold; unsustainable for extended periods)
Operating Cost Pressures
Weekly labour costs:
- Performers: ~$4,000
- Wages (staff): ~$7,000
- Security: ~$2,000
- Subtotal: $13,000 labour
Other major weekly costs:
- Stock (alcohol and food): $6,000–$7,000
- Rent: ~$1,700
Total fixed weekly spend: ~$20,700–$21,700 (excluding overheads, administration, utilities)
Margin requirement: Must achieve $25,000+ weekly revenue just to cover core costs and leave room for reinvestment, debt service, and sustainability.
Programming Performance: What Drives Revenue
Highest-performing events:
- Drag Bingo
- Eve Sapphic Night
- Lesbian Arm Wrestling
- Theme nights (event-driven, strong community appeal)
Functions: Significantly higher show-up rates than general events
Saturday programming challenge:
- 10pm–1am slot: Currently quiet during drag performances (paying queens), poor utilisation
- 1am+ onwards: Busy when straight crowd arrives from closing venues
- Used to reliably generate $20,000+ per Saturday; now often only $10,000
- Root cause: Changing customer behaviour and competition
- Implication: Reconsider programming mix or accept slot may not be salvageable
What’s Not Working
Friday Club Nights
- Cancelled due to unprofitability
Saturday Evening Gap
- 10pm–1am: paying drag queens, room quiet, poor utilisation
- Timing mismatch with customer flow
Walk-In Trade
- Dead (almost non-existent)
- Root cause: neighbourhood is deserted, very little foot traffic
- Strategic implication: Cannot rely on passing trade. Pre-sale/ticketed events and deliberate customer acquisition are the only viable path.
Midweek Customer Spending
- Customers who attend midweek events don’t drink much
- Opportunity: Food-focused programming addresses this
Related Pages
- Revenue Diversification — detailed strategy concept
- Kitchen Expansion — food revenue timing and menu
- Programming Model — event selection and revenue drivers