Podcast Summary

Podcast: From the Ground Up
Host: Inc. Magazine
Episode: Circling Back: Private Clubs Keep Popping Up—and Savvy Founders Are Using Them to Launch Their Companies
Date: November 3, 2025

Episode Overview

This inaugural episode of Inc. Magazine’s “From the Ground Up” (sub-podcast: "Circling Back") explores the rapidly expanding world of private members-only clubs and how forward-thinking founders and consumer brands are leveraging these exclusive spaces to launch and grow their products. Hosts Chloe Aiello (tech staff reporter) and Ali Donaldson (consumer economy reporter) break down the business dynamics behind these high-end environments, the motivations of brands and clubs alike, and the economics of exclusivity versus mass appeal.

Key Discussion Points & Insights

1. The New Boom of Private Clubs

• Definition & Landscape:
  Private, members-only clubs are experiencing a surge, not just in traditional urban hotspots like New York, LA, and London, but also in mid-sized cities (e.g., Lexington, KY; Savannah, GA).

  • Quote [03:27]: “These are members only spaces for dining, for coworking, for pickleball… and they're really popping up everywhere.” —Ali Donaldson

• Brands as Members:
  Exclusive clubs are increasingly seen by consumer brands as unique channels—perfect for getting products in front of the wealthiest, most trend-conscious consumers.

• Not Just New, But Evolving:
  While the private club concept isn’t new (country clubs, university clubs), the recent wave is “sleeker, younger, less buttoned-up, less waspy.”

  • Quote [04:34]: “It’s this new generation of clubs that are trying to take the concept in a sleeker, younger direction, less buttoned up, less waspy.” —Ali Donaldson

2. Post-Pandemic Trends Driving the Boom

• Experience Over Things:
  Post-pandemic, consumers—especially the wealthy—are willing to spend more on experiences than on possessions.
• Economic Realities:
  The top 10% of US earners drive half of all consumer spending, fueling demand for rarefied club memberships.
  • Quote [05:25]: “2/3 of [the US economy] is consumer spending… the top 10% of earners in the US actually account for half of all consumer spending.” —Ali Donaldson

3. The Allure for Brands: Exclusivity as an Entry Point

• Case Study: American Harvest Vodka
  • Targeted Zero Bond club in Manhattan for initial launch.
  • Gaining a spot on the exclusive menu provided social proof and cachet with other retailers.
  • Quote [07:30]: “If he's giving them something they've never heard of, they're gonna think, oh, this is something I can't get anywhere else. And that really became a calling card for American Harvest Vodka.” —Ali Donaldson
• Case Study: Amundsen Sports
  • Norwegian brand chose Yellowstone Club (ultra-exclusive ski resort) over mass retailers like REI.
  • Club buyer Rebecca Boyd values curation: “They want something they can't just buy anywhere else. They want it to feel special.” —Rebecca Boyd [00:46 & 09:21]
  • Sales success tied to the club’s demand for novelty and rarity.

4. Strategic Benefits for Founders

• Low-Volume, High-Impact Tests:
  Launching in exclusive clubs allows for controlled inventory and authentic word-of-mouth buzz among elite tastemakers.

  • Quote [13:08]: “You don’t have those same sort of inventory concerns.” —Ali Donaldson

• Price Over Volume:
  Echoes a broader CPG trend: emphasizing profits from fewer, higher-value purchasers, rather than mass markets.

  • Quote [13:52]: “They realized they could actually keep raising their prices even more.” —Ali Donaldson

5. Splitting the Consumer Economy: K-Shaped Spending

• Bifurcation in Consumer Spending:
  The luxury segment and the value segment are thriving, but the "middle" is thinning out.

  • Mass-market strategies include brands like Smash Kitchen, launching directly into Walmart at mainstream price points.
  • Quote [15:03]: “So I think what's interesting right now is we're not seeing much in between.” —Ali Donaldson

• Different Playbooks:
  Mass-market retail requires demonstrating scale and reliability; private club playbooks focus on personal relationships, bespoke experiences, and tailored perks.

  • Quote [16:35]: “When you're pitching for mass market… classic pitch deck that you're sending… When you're pitching private clubs, you're pitching to individuals.” —Ali Donaldson

6. Risks and Skepticism

• Is It a Bubble?
  Not all founders are sold.

  • Bridget Ferdle (Rackaway Soda, Oni’s Rum): Predicts an inevitable shakeout; doubts every city can support multiple high-end clubs.
  • Quote [19:44]: “There’s no way that all these cities can support all of these different clubs... there has to be some of that natural alignment, some of that capturing lightning in a bottle, which is very tricky to do.” —Bridget Ferdle, via Ali Donaldson

• The Soho House Example:
  Despite notoriety, Soho House has never turned a profit; exclusivity gets diluted as clubs seek growth.

  • Quote [21:29]: “You're essentially running like a glorified restaurant which do not make money... as it's wanted to grow and increase memberships, they've had to lower that cost of entry... and then that kind of spirals.” —Ali Donaldson

• Sustainability:
  Some clubs may endure by maintaining strict exclusivity (e.g., Casa Cipriani), but a larger shakeout seems likely for others.

Notable Quotes & Memorable Moments

• On Luxury & Curation:
  • “They want something they can't just buy anywhere else. They want it to feel special.” —Rebecca Boyd, Yellowstone Club [00:46/09:21]
• On Exclusivity as Strategy:
  • “If you have a Norwegian brand that a bunch of wealthy Americans have never heard of, that's going to be interesting. It's not just Patagonia or North Face or Canada Goose.” —Ali Donaldson [10:40]
• On the Club Bubble:
  • “You can't manufacture cool, you can't manufacture exclusive.” —Bridget Ferdle, via Ali Donaldson [20:25]
• On Scaling Dilemmas:
  • “Do you have the supply? ... They want to make sure that there's going to be consistency to restock you, and it's just going to be much more kind of a corporate deck that you're really pitching to them.” —Ali Donaldson [19:11]

Segment Timestamps

• [03:27] What are private clubs?
• [05:25] Why the acceleration post-pandemic?
• [07:30] Example: American Harvest Vodka’s club-first strategy
• [09:21] Example: Amundsen Sports at Yellowstone Club
• [13:08] Benefits of clubs for small/upstart brands
• [15:03] Bifurcation: luxury vs. value retail strategies
• [16:35] Playbooks for pitching mass retail vs. private clubs
• [19:44] Arguments and skepticism about the club strategy
• [21:29] The economics and potential bubble of private clubs
• [23:33] Club exclusivity challenged by growth, Soho House case

"Closing the Loop" Segment: Hosts’ Current Obsessions

• [27:08] Ali’s trend: Tech Bros Getting Facelifts

  • Silicon Valley men are increasingly getting cosmetic surgery to combat age discrimination.
  • Memorable quip: “If you're gonna live forever, if you have your blood boy on standby, you need a good face forever.” —Ali Donaldson [29:06]

• [29:11] Chloe’s story: Elon Musk's Grokipedia vs Wikipedia

  • Grokipedia launches as an AI-powered, “non-censored” alternative to Wikipedia, raising fresh concerns about reliability and disinformation.

Conclusion

This episode offers an incisive look into how the business of exclusivity is shaping—and being shaped by—savvy founders, changing consumer habits, and the broader bifurcation of American retail. While the club-first strategy has delivered rapid upmarket success for some, both hosts and their guests caution that this world is fickle and potentially overinflated.

Bottom line:
For brands with authentic alignment and aspirational appeal, private clubs present a powerful—though risky—launchpad. But as with any trend on the bleeding edge of luxury, it’s as much about luck, timing, and taste as it is about the product itself.