← In Search Of Excellence
In Search Of Excellence
John Terzian: Bottle Service, Billionaires, and the Business of Cool | E157
01:08:15
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- [00:00]
Randy Kaplan
Every night. Is there crazy shit going on at your nightclubs?
- [00:03]
John Terzian
We had someone, it was so upset, refused to pay his bill because he wasn't allowed to order cocaine from us.
- [00:08]
Randy Kaplan
Is the customer always right?
- [00:10]
John Terzian
I'd say 50% of the time they're kind of wrong, but it's not worth it unless there's something like any sort of sexual harassment, any sort of drug related. Outside of that. The customer is always right.
- [00:21]
Randy Kaplan
Someone's going to spend $100,000 for a booth that holds 10 to 14 people for four hours worth of entertainment.
- [00:30]
John Terzian
They're very smart. A good time is priceless.
- [00:39]
Randy Kaplan
You're listening to part two of my incredible interview with John Terzion, one of my closest friends, the founder of the hood group which owns legendary places like Bootsy Bellows, the Nice Guy, Delilah's, and they're building six more as we speak. One of the things that's made you successful and one of the great things about humanity, and we'll talk about more, is the loyalty that you have toward people who have done nice things for you. So tell us about John Sofio and the deal that you did and then the relationship that you've developed over time.
- [01:05]
John Terzian
Sofio is. Yeah, he. He's our designer, builder, everything. And I met him, I think, through Guy Starkman, to be honest. Early on he was really building homes. I didn't have a dollar to my name and when I got Shorebar, I had to redo it and I had no money. And so I told him if he did this because, you know, he went look at it for basically nothing, I'd use him for my empire that I was going to have. And, you know, most people think that's crazy, but he did it. He was like, you know, I'll take the shot. So I've stayed true to my word. He's built for 12 years. I mean, we've done, I think 30 places now or something, 25 places that I've. He's done every single one. I've stayed true to my word on that regard, and I'm very big on that.
- [01:55]
Randy Kaplan
You're not in the mafia, but you built a place that you call the Friends Mafia, your first restaurant. So tell us about the Nice Guy, where the name came from and then the evolution of that concept from start to finish.
- [02:08]
John Terzian
So the concept came from, as we got pretty big, we were getting going in the nightclub world where we were really known as like the nightclub guys, which is good and bad. So it's great. We're making money, we're Successful, ish. You know, at a young age. But we're really two things. We're really pigeonholed as nightclub guys. And then also we're mostly like normal guys. And like, our friends and stuff aren't all going to nightclubs. Like, they actually want restaurant or a lounge or whatever. So we had this idea, especially as paparazzi got even more massive with this idea of doing a super private, like, almost hybrid club and restaurant. Didn't know where we were going to do it, but this idea of doing it, and everyone's like, oh, you know, it's crazy to do that. You know, you kind of one or the other. And the original plan was I eat like a five year old. So the original plan was only pizzas and a bar, right. And we ended up finding a space. And where the name came from is two ways is Adam was one of our partners at the time, actually had a dream about having a place called Nice Guys or something like that. And. And so that always, like, stuck with me. And when we were building it, we had this one investor committed to it, whatever, and we were. We were like midway through, like sticks in the ground. And like, not anywhere near close, but like, had already, you know, we were more than pregnant on the space that we had. And he walks in one day and he basically is like, I just found out you guys aren't doing a nightclub. We're like, I never said I was doing a nightclub. He's like, well, you're doing a restaurant. No way I'm investing in a restaurant. And I'm like, well, it's like a hybrid. He's like, that doesn't work. And so anyway, long story short, as he went off, he's like, I'm not doing it. I'm pulling out. And he was like, you're. He's like, also way too nice. You're way too nice of a guy to have this work. And so name the place a nice guy. You know, based on this guy pulling out, we got completely screwed on on that. Ended up finding investors to build it. Built out more of an actual restaurant. Whole Italian thing. Kind of based it on like our. My whole thing was like, we're gonna have a place that's like our friends and their friends. Almost like a Cheers. I call it a mafia, where it's like, you know, it's everyone that like, you're, you know, friends with and associated with, because to this day, but especially then, is the only way you could get in or reservation was from on our Rolodex. So you Gotta be through one of us. And so that's how, that's how the nice guy came about.
- [04:55]
Randy Kaplan
It's an awesome venue. I've been there 50 times. I had a birthday party there once, you know, with all my buds and friends and family. It's amazing. What you've done there is incredible. And the food has really improved dramatically. I mean from in, from where you were when you opened it. It's, it's fantastic. Let's talk about the nightclub market itself. I'm going to read some statistics here.
- [05:18]
John Terzian
Sure.
- [05:19]
Randy Kaplan
So there's 21,000 nightclubs in the United States. The U.S. bar nightclub market in 2023 in the U.S. $37.6 billion. Globally, $468.2 billion. There's not a lot of data today on how much each nightclub does, but in 2015, Forbes printed. Forbes released the numbers. Access nightclub In Los Angeles, 103 to $105 million. Hakkasan in Las Vegas, 100 to $103 million. Marquis in Las Vegas, $80 to $85 million. Tao in Las Vegas, 50 to $55 million. And live in Miami, 40 to $45 million. Are some nightclubs really earning $100 million a year?
- [06:04]
John Terzian
Yes, but that's Vegas. Las Vegas is an outlier overall. You know, it's just, it's, it's a place where everything comes together. So yeah, they, they are doing that. And it's a, it's a great market and it's great for that. But hard pressed to do that anywhere outside of Las Vegas, even Miami. It's really one in the whole world.
- [06:27]
Randy Kaplan
Explain what the economics of a nightclub business really is. How does it work? How do you make money? And then in Las Vegas in particular, and maybe in Miami, explain to people what a beach party is.
- [06:41]
John Terzian
The truth is the way you really make money is by, in the nightclub world are whatever handful of bottle buyers there are. Like the table buyers are like the bar itself is de minimis. And even the ticket, even if a place is in Vegas or whatever, we don't sell tickets at our places. But that's minor. It's the table buyers, the guys or girls that are spending 50, 100 grand on tables. That's why it's big business.
- [07:08]
Randy Kaplan
Okay, so there's a lot of people watching this. Tens of thousands who've probably never been to a nightclub. It's a crazy concept. So the nightclub may have 50 booths. Maybe there's the front row, they're more expensive. The middle, the back. Someone's going to spend $100,000 for a booth that holds 10 to 14 people for four hours worth of entertainment. Who are these people?
- [07:37]
John Terzian
They're very smart. A good time is priceless. I'm clearly very for it.
- [07:45]
Randy Kaplan
It's great.
- [07:46]
John Terzian
So it's just at the end of the day, it's just an experience at the very end of the day, whatever it is. While it might be a lot of money, everything is relative. So if you're into needing an experience that's fun and you want your own real estate, it's really a real estate game. You have your own table, you have your own servers. At the end of the day, like that's, that's really what it is. That's your night out.
- [08:13]
Randy Kaplan
The experience is someone's performing, typically performer.
- [08:17]
John Terzian
A dj.
- [08:18]
Randy Kaplan
Yeah, a dj. So a lot of people also don't know how much these people are getting paid in a night. I learned about this. One of Madison's best friend was dating Calvin Harris. And we went to dinner one night, which is very, very cool by the way. I tell you another story. So you know that I'm not in the scene and I, I really don't know who's who in the scene. And Madison's friend Eva Shaw, who, who you know, was dating Calvin Harris. And Madison tells me I'm leaving the office, there are two interns there, I'm walking out at 6:00, the dinner's at 7:00 and, and we host. I gotta go home, change. And you know, one of the interns said, oh, what are you up to tonight? I'm having dinner with one of Madison's friend, you know, he said he's a dj. And he said, oh, you know, do you know his name? And I said yeah, Kelvin something. And they're like, Kelvin Harris? He said yeah and said, who's that? I said, oh God, he's the biggest ever. And went back home and looked at, looked online and Forbes said he makes $70 million per year. I'm thinking, oh God, this guy's going to be an arrogant asshole. Another Hollywood person who's going to be all into himself and not ask me any questions. And I walked out of there with a man crush. The nicest guy in the world. Polite, asking, incredible, super nice. But, but I learned, I said, you know, without being weird about it, this public, I said, how do you make tens of millions of dollars per year? Forbes said, you made $70 million per year? And he said, well, he said I got paid usually 500,000 to a million dollars per night.
- [09:48]
John Terzian
Yeah, to DJ.
- [09:49]
Randy Kaplan
To DJ. So it's not a band in a stadium where you're traveling with 18 trucks and setting up and have cost. He's bringing like a little USB stick. He's got a turntable that's not even his. That's there.
- [10:01]
John Terzian
But he's the top of the game.
- [10:03]
Randy Kaplan
Right. But then, you know, you'll get, you know, the chain smokers now are a million dollars.
- [10:06]
John Terzian
Totally.
- [10:06]
Randy Kaplan
What's an average DJ that people actually want to come see? Don't name names, but like someone who can pull people in the door.
- [10:14]
John Terzian
How much they get paid?
- [10:15]
Randy Kaplan
Yeah, like what's the minimum?
- [10:16]
John Terzian
I'd say a good DJ that can like whatever that pulls names is probably 20 grand. 25 grand can bring people in? Yeah, yeah. It doesn't have to be, you know, once upon a time it was, you know, 500, but, but you know, your average person is 25 grand. Then your, your bigger DJs that are the Vegas, Miami ones are, you know, anywhere from 100 to 500 grand a spin, you know, a set, LA doesn't do that. Miami doesn't really even do that level. It's really only in Vegas and overseas and private where you do that type of dollar amount.
- [10:58]
Randy Kaplan
Nightclubs are only open two or three nights a week. And there's different nights at this nightclub is cool. That nightclub is cool. You generally don't compete for those nights. So who decides who gets what night and what nights are cool?
- [11:11]
John Terzian
You know, it's just, it's a matter. It's like any business, you're living and breathing it. So you got to just kind of know the landscape and who's the promotions that are the right ones that know what to do and when, where people are gravitating to and you know, what the competitor is doing and what you should be like. It's, it's definitely just living and breathing. There's not a science or a crystal ball to it. It's just, it's no different from any other business. You got to like, like live and breathe it. And that's why it's not easy. It's hard. It's hard to know what it is, but if you're in it, you can kind of get a sense, you know.
- [11:44]
Randy Kaplan
And what's the cost to open a typical nightclub can vary.
- [11:47]
John Terzian
You know, the way we, we build top of the line. So you know, ours are, you know, 5 to 10 million. You know, so in, in Vegas they're you know, 100 million.
- [12:01]
Randy Kaplan
Someone spent $100 million to open a nightclub.
- [12:03]
John Terzian
Yeah.
- [12:04]
Randy Kaplan
Who did that?
- [12:06]
John Terzian
I think it's multiple, actually. So I won't. I won't name names, but most of them spend a. You're spending real money.
- [12:12]
Randy Kaplan
Delilah is your restaurant. Signature restaurant, which. The first One was in LA, second one is in Vegas. $28 million build out?
- [12:21]
John Terzian
Yep. A little less, but yeah. 25.
- [12:23]
Randy Kaplan
Huge.
- [12:24]
John Terzian
Yeah.
- [12:25]
Randy Kaplan
Can some random chamo call and say, hey, I want a reservation to Delilah in Vegas?
- [12:31]
John Terzian
In theory, you should be able to, but it's been. It's. It's a hard. It's a hard reservation. Thank God. So we hopefully can get to everyone, but yeah, it's a long process of getting a booking.
- [12:44]
Randy Kaplan
Glad we're friends. Nightclubs don't stay cool forever. So what's the average length or period of time nightclub is open and how do you keep it cool?
- [12:57]
John Terzian
You know, it's a tough question because I used to always say three, four years max are nightclub shelves.
- [13:03]
Randy Kaplan
So. So. So you're spending five to $10 million on a nightclub. It's open two or three days a week, and it has that short of a shelf life.
- [13:10]
John Terzian
Yeah, I mean, we've had Poppy open for, you know, eight years now, so I shouldn't say, you know, it's not. And Bootsy's was open 11 or 12 years. Las Vegas, whole different. You know, their places are open 20 years. Very different. Miami, a little bit the same way. As far as keeping it cool or hot, the. If you will, you have to just. You have to be in the venue. You have to have the right team that's there. And you have to, like, if the minute you're removed as an owner, operator or the team is that's with you, you're going to lose that touch or that. How to keep evolving. Because the key is to keep evolving and keeping on edge. Because, you know, music changes monthly. You know, DJs change monthly. I mean, it's a whole thing.
- [13:54]
Randy Kaplan
Are the investors in nightclub men who want to be cool and have sex with beautiful women?
- [14:02]
John Terzian
I love your questions. I would say that's probably a lot of people. That's not us. We have, unfortunately, to have. We have. We have a normal investor backing. I would say, you know, look, I don't know if it's. I don't know if it's as direct as that, but I'm sure there's a lot of. I'm sure there's a lot of nightclub investors. It's like, hey, this will be my social life, you know, so I'm sure that's what it is. Anything More direct than that is pretty creepy and probably not the type of investor you want.
- [14:32]
Randy Kaplan
Been at nightclubs a few times. You know, I have like a quota, you know, one, one or three times a year, depending on who is inviting me and you know where we are. And I always looked at these people. You know, you make your money on the bottle service, on the tables and those people who don't know and for those people who do, when someone buys a table or a big bottle or something, the women come out. You know, there's five or six women. It's like a parade of women carrying Dom Perignon bottles with sparklers coming out. Like, why are these people paying, you know, 25, you know, $100,000 for a table? I'm like, these guys are losers, right? And then at my bachelor party, Hakkasan, which you arranged, you know, all the girls came out with the bottle and sparklers. You know, Randy on. I'm like, hey man, that's pretty good.
- [15:19]
John Terzian
Pretty fun, right?
- [15:20]
Randy Kaplan
It's pretty fun.
- [15:21]
John Terzian
I know.
- [15:21]
Randy Kaplan
One and done, but it was fun. Maybe not one and done, but, but it was really fun.
- [15:25]
John Terzian
I'm telling you. It's human nature to see something sparkly and fun. And you're like, I want that. Yeah, it's, it's, it's as old as time. It's as simple as that. And that's like what goes down, honestly, you know, that's what happens in these places.
- [15:42]
Randy Kaplan
Do people pay you to put their brand of alcohol in your venues? You told me this story once and I'm not going to name names, but there's someone who's very successful entrepreneur, very, very well known guy billionaire who owned a, I'm not even going to say what kind of brand because I really don't want people to figure out, but they own some kind of a brand. And he was coming into your venues to pitch you to carry his alcohol brand. Okay, are people paying for shelf space to, to get in?
- [16:15]
John Terzian
No, I mean, you can't, you really can't do that. They do, they do sponsor parties. So when we have events and stuff and we need a liquor sponsor or something and they're putting those marketing dollars there, that is a very massive thing. That's, that's like a major aspect of it. But no, you, you, you don't. You. It'd be too, it, you can't do it that way on, on being paid to. Because the, the big companies then would, would have a monopoly.
- [16:50]
Randy Kaplan
So who's the typical customer coming in and spending 25 to $100,000 on the table.
- [16:54]
John Terzian
It's funny, I have this. It varies like every few years. It's like whoever is up, like, like right now, the crypto people, you know, so thank God for crypto up, you know, you know, a few years or whatever it was few years ago, it was the mortgage people. It just. There's like a cycle of people always, like, who knows, you know, so there's that and then, you know, there's inheritance, there's corporate, there's. It just varies, you know. And look, you're talking about the extreme 25 grand. The average table is, you know, like 2 grand, 2,500, something like that. So you get your, you get your nuts and bolts or your, you know, off of the average table. And then the, the, the hope is every night. But the hope is, I don't know, once a week or whatever, you get someone big, spending, you know, 50 grand, 100 grand type of thing. That's, that's the name of the game.
- [17:44]
Randy Kaplan
Petra Ecclestone is the daughter of the F1 founder who famously bought the old spelling mansion for $100 million. Ex husband James Stunt would come in when I spent $150,000 on Crystal Champagne.
- [18:01]
John Terzian
Oh, yeah.
- [18:02]
Randy Kaplan
He declared bankruptcy two months later. Two years later.
- [18:05]
John Terzian
Sorry about that.
- [18:06]
Randy Kaplan
Well, not really because he. Yeah, maybe you're sorry cause he didn't come in again.
- [18:10]
John Terzian
Yeah, it's unfortunate.
- [18:12]
Randy Kaplan
Then, then you've had Middle Eastern clients come in as well, spending. There was some rose vintage Dom Perignon bottles that were $40,000 each. There was one in particular. I'm not going to name names again, but who bought two bottles. Tony, Lena. Shout out to Tony. I love him. I think he had to go to drive to Las Vegas to go get these bottles. They're very, very hard to get, and then bring them back. You're catering to what's known as whales. How do you recruit them and how do you keep them happy?
- [18:43]
John Terzian
At the end of the day, I always say I'm not in the bar business or the food business. I'm in the people business. So our whole thing is catering to hospital. We're all in hospitality, so we do anything and everything for our clients, especially our whales, which are big spenders. That's legal. We don't do anything outside of that. But anything they can do to make their entertainment life, like, enjoyable and perfect, they want a certain type of cigarette, they want a certain type of ashtray, a certain type of liquor, water, where they stay like whatever. We are doing every aspect of it in that regard. And I think that's what really separates a real, a good hospitality group.
- [19:25]
Randy Kaplan
It's sort of like Vegas going after the gamblers. You all know who they are. So. But where, where do you, how do you compete with these people? They know you already. And how do you develop relationships with new ones?
- [19:36]
John Terzian
You, we, that's, we've. You built it. You have a track record, you build it over time. You get referred, you know, a bunch of different ways. That's the only way to really, you know, do it is you got to have, you got to do good work and then have people say, hey, go with this person.
- [19:50]
Randy Kaplan
How has Onlyfans essentially ruined or badly hurt the nightclub business?
- [19:55]
John Terzian
It's hurt it bad. It's very interesting. It's made it so easy for male and female, but obviously a lot of females to just make a fortune doing whatever online. Not even nudity anymore. And so why that's changed a lot is a lot of that demo and age or whatever that would be. Waitresses, waiters, hostesses, hosts, bottle girls. It just completely changed the workforce in a lot of ways. Just made a lot less options.
- [20:29]
Randy Kaplan
But isn't it the flip side as well? Because back in the day, a lot of guys, and again, I'm a guy and I have friends and a lot of my friends went to nightclubs. They go to nightclubs to meet beautiful women. And today you can DM beautiful women. And beautiful women don't have to be in the nightclubs. Right. They're just right, they're, they're there.
- [20:48]
John Terzian
Yeah.
- [20:49]
Randy Kaplan
So they're the human element of meeting beautiful women, which is a motivation for a lot of guys who do go to nightclub is not there. And there's fewer of those women who are going to nightclubs now because they don't really have to.
- [21:02]
John Terzian
It's true.
- [21:03]
Randy Kaplan
Let's talk about another thing that's really hurt the business. Today's generation drinks less alcohol.
- [21:08]
John Terzian
It does.
- [21:08]
Randy Kaplan
So let me just read some numbers here. In 2023, the boomer spent $25 billion on alcohol. Gen X 23.1 billion millennials, 23.4 billion. Gen Z, $3.1 billion. How much has the younger generation affected your business? Not drinking as much.
- [21:30]
John Terzian
You see, you see the effects. They're not drinking as much. It's not, it's definitely not a rite of passage to start drinking. It's definitely not. The cool thing to do is to drink, you know, so you see a massive drop off in that regard. But at the end of the day, you know, I'm all, I'M a big believer on. There's always like pendulum swings and things and, and you know, I, it is, it is what it is right now. That doesn't mean that, you know, there isn't the still need for entertainment and going out and I don't think that's ever going away. You know, going out to meet people, socializing, AI and in our life, in our living lifetime, that's not going to be replaced. So that's the good thing. But there is a big difference on the drinking, you can see it.
- [22:19]
Randy Kaplan
Is owning nightclubs a good career?
- [22:22]
John Terzian
Stuff to say, you know, you got to love it. I got, you know, I, you know, if I didn't own nightclubs, I wouldn't be here today with a full hospitality company. But that's, that was my way of getting there, you know. So yes, it can be a great business. It can also be a terrible business. You could lose, you can lose everything on a nightclub.
- [22:43]
Randy Kaplan
You know, I think there's a general impression of most people about what it means to own one. Are nightclub owners rich?
- [22:49]
John Terzian
They can be. I mean it just depends. Honestly. It's like you're, if you're, you can be. If you're, if you're a big, if you're the winner, if you're the big, the biggest, if you're the one that's doing it, you're going to, you're going to do very well, you know. And if you're, if you're not, if you're mid, tier, you're, you're not very rich. You're actually just like any other entrepreneur that's, that's killing themselves, feeding the beast over and over.
- [23:13]
Randy Kaplan
You know, you go to a nightclub or you go to one of your restaurants, there's a long line to get in. There's a doorman. Parker was your doorman for a long time. Now he's ahead of creative. We'll talk about what you've done for your employees on a long term basis. Who's getting in?
- [23:28]
John Terzian
You mean how do people get in? Yeah, you know, for the most part it's through, it's through relationships. So, you know, they're, they're, it's all on who they know what, promoter, what, whatever. And that's, that's literally the doorman. Like that's literally how it goes.
- [23:43]
Randy Kaplan
So. But there are random people who get in line at nightclub, they want to get in and then someone like Parker is picking and choosing, you know, your four dudes. You are never getting in.
- [23:54]
John Terzian
It depends. It doesn't go like that it goes more if you know the landscape of who people are and if they're out and about and if they're right, it's more about. It's more about that and more about. Because. Because you gotta. It's like I said, it's just like any other business where you, you know who the, you know who the players are, who the right people are that are like going out. There are different venues that are not causing issues, that are not, you know, that are bringing good things to table. So it's less about, you know, if you're four dudes, like you said, it's like that because that can happen. You know where the, the four guys do get in. Because if they're the right ones, if they're the right. If they're the people that are out and they're the ones that, that we know, the ones that Parker knows or whoever the person is in the door is. It's a different story, right?
- [24:38]
Randy Kaplan
But for dudes who knows. No one who's coming to la and there's four guys, six guys want to go to nightclub. Hey, I heard Boost is amazing. You guys are not getting in, don't even bother to come.
- [24:47]
John Terzian
Not easy.
- [24:49]
Randy Kaplan
There's a lot of cash exchange at the door, right?
- [24:51]
John Terzian
I think so. You know, I mean, 100 bucks to.
- [24:54]
Randy Kaplan
Get in and give the doorman 100 bucks.
- [24:56]
John Terzian
You know, I, I don't know how I. I mean, hopefully that's not at ours like that, you know, but it happens sometimes.
- [25:03]
Randy Kaplan
I mean, I've. I've seen it happens a lot. You know, some change exchange here and there.
- [25:07]
John Terzian
Yeah, it happens a lot. That's part of the. It's part of that business.
- [25:10]
Randy Kaplan
I, I think one of the things that you've done is so important in business is be loyal to your employees. If you're great to them, they'll be great to you. And one of the great things you've done is you've promoted people who've been with you for a long time. Parker was a doorman for, I think, five or seven years. He's now head of creative. Seth Miller has been with you for 11 years. Shout out to Seth. You always take great care of me. I love you. Been with you 11 years. And he started at one level, now he's at a whole other level.
- [25:38]
John Terzian
Yeah, he's in Miami at our Delilah Miami operation. So he's. We. I'm a big believer in people rising with us, you know, and I do think it really matters. We have so many people that have been with me for. Since the beginning, you know, and the idea is that everyone kind of, you know, grows together and keeps growing. I mean, it's the best way if it can be done.
- [26:03]
Randy Kaplan
A lot of crazy shit goes on at your nightclubs and you're constantly putting out fires. I mean, I've been with you, we've been sitting at a club, we've been talking like, oh, shit, you know, gotta go deal with this right now.
- [26:13]
John Terzian
Yep.
- [26:14]
Randy Kaplan
Every night. Is there crazy shit going on at your nightclubs? Give us two examples of something absolutely absurd that went on without naming any names.
- [26:22]
John Terzian
It's just. There's just always something. It's like, you know, there's, you know, someone in a fight in the bathroom. There's someone screaming at a waiter or waitress. There's, you know, we had someone. We had someone. I don't know if you can say it on here, but we had someone demand. It was so upset, refused to pay his bill because he wasn't allowed to order cocaine from us. Didn't understand that. So it's like weird stuff where people are just absolutely out of their minds.
- [26:53]
Randy Kaplan
Are people having sex in bathrooms?
- [26:54]
John Terzian
I think so. I don't know.
- [26:56]
Randy Kaplan
It's funny, you know, you see people go in there, you know, you have a line and then there's a door and someone opens the door and someone kind of goes in and then, you know, five minutes later they come out. So, yeah, yeah, it's like, you know, I don't know, something, you know, weird things are going on in bathrooms.
- [27:09]
John Terzian
I hope. I hope not. I hope not at ours, but you never know.
- [27:13]
Randy Kaplan
You talk about how hard it is now to hire bottle servers. My wife, Madison, worked at Finale nightclub in New York. She had four jobs when I met her, and she'd bartend for one night a month or two night a month, making a thousand. $2,000 cash in a night. So the bottle servers, bottled girls make between one and $2,000 on a good night. The clubs are open two or three nights and they're open from 11 to 2 in the morning.
- [27:41]
John Terzian
In LA?
- [27:42]
Randy Kaplan
Yeah, in LA. So you work nine hours, six to nine hours. And if you pencil that over the course of year, you can make $100,000 a year. Working very little time.
- [27:52]
John Terzian
Yep.
- [27:54]
Randy Kaplan
Do you recommend being bottle girls as a career choice for some women?
- [27:58]
John Terzian
Yeah, I think it's a great. I think it's great. It's like the end of the day, it's, it's. It's a sales job. So if you're good, if you're Good at that. And you know it. You can do really, you can do a great for yourself. You can do great for the place. So yeah, I do think it's great.
- [28:17]
Randy Kaplan
How does someone become and apply to become a bottle girl? Do you have to be good looking and thin or have a good figure? And if so, how do you apply?
- [28:26]
John Terzian
Well, you, whatever new club is opening, they usually do a. They usually do a. You, you usually do a call, like a call for new people working there. You do. You know, for the most part you should, especially when it's like the bigger ones, you should have a experience because it's not an easy job. There's a lot that goes into it actually. So you'd be hard pressed. I don't know if we would hire someone with no experience in the bot. Like they have to have some sort of experience or training in it.
- [29:01]
Randy Kaplan
I had a waiter when I was in Vegas. We were there for the F1 race, actually. I was there to interview Dana White for my show. We went to Javier's and we had a very nice waitress. And I like talking to people, I like learning what they do and what are you up to? Is this your full time job? And she said she was at one of the beach clubs as a bottle service girl and no longer work there. And I asked why, I said, Well, I gained 15 pounds. That's fucking nuts.
- [29:32]
John Terzian
That's crazy. That's Vegas. I guess. That's not LA or California.
- [29:37]
Randy Kaplan
Yeah, she.
- [29:38]
John Terzian
I don't, I don't think that's legal in California.
- [29:40]
Randy Kaplan
I mean, who's going to, you know.
- [29:42]
John Terzian
But Vegas going to sue in California? I mean.
- [29:45]
Randy Kaplan
Well, I'm just saying, like, you know, she, she's. Yeah.
- [29:48]
John Terzian
I mean, I don't know. That's, that's, that's definitely not.
- [29:52]
Randy Kaplan
She lost the weight, by the way, because we're Instagram friends and I saw her posting again from the beach club. Yeah, I said, oh, you got your job back. Said, yeah, lost a little weight. Is that insane?
- [30:04]
John Terzian
I mean it's, it's similar to the cheerleader world. Yeah, cheerleaders have a, have a, have a thing, but that is definitely more. That's definitely a Vegas thing. That, that's not, that's not LA.
- [30:15]
Randy Kaplan
Delilah's. You opened in 2016. You said you built it for your friends. Tell people what it is. I mean, good luck getting in, but tell people how cool it is.
- [30:25]
John Terzian
With the success of Nice Guy, we were like, you know, we're actually onto something. And we felt that there was this new like desire for People to have a place where they're, like, having a night out and dining at the same time. And literally, people thought that you couldn't do that in la, thought it was, like, insane. And so, you know, what's ironic is as old as Time are supper clubs. And that's what they did back in 1920s. It was like dining, live music, drinking, kind of all the above. And that's the concept of Delilah came from that, bringing that back in a real way. And that's what we did. And, you know, it took a second to take off. I remember in the. In the first week being on a Friday night, we had a close at like 8pm and I was, like, literally in tears. Like, I was like, we're screwed. But we stuck. We stuck to the model and. And it's definitely, you know, it's our big, you know, Delilah is our flagship brand. And then when we opened it in Las Vegas, we got global recognition for it, you know, and now we have it in Miami, and we're opening it in Dallas.
- [31:33]
Randy Kaplan
One of the dessert items is something called the slutty brownie, and it's named after Kendall Jenner. What do I have to do to get a dish named after me?
- [31:45]
John Terzian
Be a Jenner.
- [31:46]
Randy Kaplan
Be a Jenner. Gotta get them to adopt me.
- [31:49]
John Terzian
She is, you know, she created that. I really credit her, and she's like, the greatest friend and supporter. I really credit her with Delilah taking off because she did her birthday there early on, and from then, it really took off. So I'll always be appreciative. But, you know, she had this love of this. Of this dessert, and it was a slutty brownie. And she actually literally created the dessert. Like, literally.
- [32:14]
Randy Kaplan
She came in your kitchen and started putting together. Hey, John, will you taste some hey to our chefs?
- [32:19]
John Terzian
Yeah.
- [32:19]
Randy Kaplan
Okay, it's your chef.
- [32:20]
John Terzian
So that's where it stems from.
- [32:22]
Randy Kaplan
You mentioned before that you do crazy things to make your customers happy. Tell us about Jho Low's brother and how on earth you went out and got a live chicken with a top hat in the middle of the night.
- [32:37]
John Terzian
Yeah. Zen Lo tell people who he is.
- [32:41]
Randy Kaplan
First of all, a lot of people don't know.
- [32:43]
John Terzian
Well, he turned out to be the world's biggest fraud. So that's always fun. You know, he was, at the time, he was, you know, he was really famous for being, like, literally the world's biggest spender. He was spending a million a night on bottles. And I think everyone assumed. I mean, I don't think everyone assumed he was just a Fun loving but legit businessman. You know, he was always with like the right, you know, business people. And he'd come out and spend, you know, I don't know, literally a million, $2 million on bottles. And we had him in, in LA and Aspen actually. And yeah, his, his, his brother asked me to facilitate for him. He wanted to gift someone at the, at the next table a, a gift. And I was like, okay, I'll make anything happen. The live chicken with a top hat. And it was like, I don't know, 11pm or something on like a Friday. And I'm like, I found a farm open and I don't know, I did it.
- [33:56]
Randy Kaplan
Like you said, you're, you're asking someone to go back online, search chickens for sale and you send someone out to go pick one up. Like did he bring it back at 1 in the morning?
- [34:09]
John Terzian
Yeah, it was like, I think it was like 11 or 12 or something like that. And yeah, I mean Peter wouldn't be too happy but make the guy happy. But yeah. And then years later Jho Low turned out to be this big one MDB scandal.
- [34:26]
Randy Kaplan
Yeah. And for those people who don't know, he's part of the Malaysian government swindled $5 billion and Goldman Sachs was involved in raising that capital for the sovereign wealth fund. And Goldman paid a several billion dollar fine.
- [34:40]
John Terzian
Yeah.
- [34:41]
Randy Kaplan
And this guy also gifted Jennifer Lopez some kind of a three hundred thousand dollar car. I think of Rolls Royce and Leo DiCaprio. And the government came back and.
- [34:51]
John Terzian
Yeah, they didn't take the chicken though.
- [34:53]
Randy Kaplan
They didn't take the chicken. The chicken probably died that night a couple days later, sacrificed that chicken. Sacrifice not part of your chicken tenders.
- [35:01]
John Terzian
No, not part of chicken tenders.
- [35:03]
Randy Kaplan
Which is, which is one of the signature dishes at Delilah and at your wedding.
- [35:08]
John Terzian
It is. Yeah. Well, I throw a chicken tender festival too. I'm a big chicken tender fan.
- [35:15]
Randy Kaplan
Not healthy.
- [35:16]
John Terzian
It's not healthy, but you'd be hard pressed to find someone that doesn't like a chicken tender. So I've bonded with like the craziest people, like the biggest from whatever people over a chicken tender.
- [35:26]
Randy Kaplan
We both have young kids always chicken tenders at the birthday parties. I have 100% take rate on the chicken tenders every party.
- [35:36]
John Terzian
You do?
- [35:36]
Randy Kaplan
Yeah. Love them.
- [35:37]
John Terzian
It's the best.
- [35:38]
Randy Kaplan
Love them. Another interesting thing you did, you were in France, I think the Cannes Film Festival with the CEO of Hakkasan, who in the middle of the night want to smoke some hookah at 1 in the morning. And you don't speak French.
- [35:51]
John Terzian
Oh, yeah.
- [35:52]
Randy Kaplan
So how did you do that when you don't speak the language?
- [35:55]
John Terzian
I figured it out with that, but I had to convince a, I had to convince a place to open a shop to get a hookah. I mean, I, I, I must have run 20 blocks. I was, it was actually insane and convinced them to open it and, and made it happen. My thing is just making stuff happen. It's the only way to be. So it's like, you know, and it's, it's probably not fun for the people that work like with me because I expect everyone to have that mindset where it's just like, just make it happen, you know?
- [36:25]
Randy Kaplan
Was there a customer who asked you to return a tire at Nordstrom?
- [36:30]
John Terzian
That's actually my thinking is that vibe, that whole Nordstrom's mantra where it's like anything, I don't know if they still do it, but anything that can be returned, they do.
- [36:44]
Randy Kaplan
You have a saying that at the end of the day, we get it done. Critical for the customer service business.
- [36:49]
John Terzian
Yes.
- [36:50]
Randy Kaplan
Is the customer always right?
- [36:52]
John Terzian
The customer is always right, even when they're wrong.
- [36:55]
Randy Kaplan
So give me an example. When they're wrong, but they're right, it's.
- [36:58]
John Terzian
Almost every night, you know, they're, they're at the very end of the day, it's not worth arguing with a customer. Even if they're, even if they're right, it's not worth, I say, even if they're wrong, it's not worth arguing with them. It's their night. It's, it's a moment in time. So unless there's something like, you know, where we draw, where I draw the line is, you know, any sort of sexual harassment and any sort of drug related. Okay. Or, or harassment at all. So outside of that, the customer is always right. So it's like if you do one of those, you're in the wrong and you're going to be out. But if you're arguing over, I don't know, you didn't order something and it's on the bill, or you didn't get the table you requested, or every night there's some version of that. And you know, I'd say 50% of the time they're kind of wrong, but it's not worth it. And it's like, and I try to train the people around me or teach the people with me that it's just like at the very end of the day, just say, I'm really sorry, we'll make it happen. Like, it's fine. Like we'll do X, Y and Z. It's okay. It's not worth the argument of being right or wrong. You'd rather you get more by having them get back to their night and have, and have an enjoyable evening or day.
- [38:21]
Randy Kaplan
A lot of restaurants have customers more vip, you know, they get the better tables. Do you have a code system for pain in the ass customers?
- [38:32]
John Terzian
No, we don't have pain in the ass. We have very detailed notes though on everyone's likes, dislikes, what they want, you know, what they eat, what they.
- [38:41]
Randy Kaplan
Table numbers, what they prefer.
- [38:44]
John Terzian
Table number.
- [38:44]
Randy Kaplan
Yeah, I always ask for a table number, I put it in my phone and then I'll ask for tables.
- [38:50]
John Terzian
You mean the table that you like?
- [38:51]
Randy Kaplan
Yeah, the table that I like when I'm at a restaurant. I mean if, if I'm going there, you know, sometimes, you know, I'll call you up. John, I'm at, you know, Delilah's Kygo and I'm just lucky to get a table. No, even with our friendship, I'm, I'm lucky to get a table.
- [39:05]
John Terzian
No, no, it's not a pain in the ass mark. It's a mark of this person has high, high tension over X, Y and Z.
- [39:14]
Randy Kaplan
Right.
- [39:14]
John Terzian
You know, over, you know, make sure to not, you know, pour the water in front of him or her. You know, it's like, it's that detailed.
- [39:22]
Randy Kaplan
You have amazing relationships with celebrities. Justin Bieber, Drake, Post Malone. Tons and tons of people. They come in your club sometimes. I've been there. People come in, Justin Bieber walks in, he starts playing the piano. How did you develop these relationships with all these famous people?
- [39:43]
John Terzian
The ones that I'm friends with are genuine relationships, just happen to be celebrities.
- [39:49]
Randy Kaplan
Yeah, but I mean if Post Malone was hanging out at the, two tables away at the nice guy and I love Post Malone, by the way. And I'm not going to really go up to him and say, hey, Post up. What's his real name again?
- [40:04]
John Terzian
Austin.
- [40:05]
Randy Kaplan
Yeah, Austin. Hey, Austin Randy. Hey, you know, let's go have a beer at the bar together. It's, it's hard to become friends with a celebrity.
- [40:12]
John Terzian
Yeah, but you're not in the, like I've been in this, I've been in the business, in the, both music, entertainment and hospitality business now for 20 years. So a lot of people I've been friends with since, I've been friends with Post since he started basically his career almost, you know, essentially. So we've just been friends this whole time and it's, and it's it's very genuine. Like, I don't. At the end of the day, I think the key with me is I'm not. I'm not. I don't have an angle. I'm not expecting things of them or people. It's actually opposite. I actually want to have them protected and feeling that they have a place that they don't get exploited.
- [40:51]
Randy Kaplan
No one really goes up to him. I mean, if I'm post Malone was sitting next to me at the bar grabbing a beer, I'd definitely say hello, but I'm not going up to his table.
- [41:00]
John Terzian
Well, in my places, they don't. They do in other places. Yeah, you'll get kicked out right away because the only way I can have anyone feel they. You want to be able to have a night out or. And not be harassed, you know?
- [41:15]
Randy Kaplan
Yeah. We were. Nobu one night. America's Got Talent is my favorite show. It's the American dream. I'll cry when I see these stories sometimes.
- [41:27]
John Terzian
Learning a lot today.
- [41:28]
Randy Kaplan
You know, Nobu has security. If you go there a lot, you know who they are. And by the way, good luck getting a reservation at Nobu. I mean, if you're really not on the list, you know, you're not getting a table there. So, you know, they have these guys, you know, you've been there. And Simon Kyle walks in one night, and my daughters, who you also know well said. Yes. Simon Cole just walked in and they know I love the show, and I do not go say hello. So he's passing by the table. I was already up out of my chair. I said, hey, Simon. I introduced myself, and you could see these two guys walking toward me. I say, I'm a huge fan of the show. I think so. And so is going to win. And I just met this songwriter who had written songs for all these people, like Cole Swindell and all these interesting people, Blake Shelton. And I said, oh, I've got this guy.
- [42:17]
John Terzian
Oh, you pitched him.
- [42:19]
Randy Kaplan
I had nothing to gain from this whatsoever.
- [42:23]
John Terzian
But you pitched him.
- [42:24]
Randy Kaplan
No, I just said, by the way, if you call it a pitch. I was trying to help him. I'm trying to help him.
- [42:29]
John Terzian
Yeah, you're trying to help.
- [42:30]
Randy Kaplan
And so I said, I think this guy is going to win. He did not win. But I said, you know this guy. And what I did say is, so we were at Gaza, and I'm sitting next to Joe Russo, one of the biggest directors all time. I think the second biggest spillover is first. And. And we're at dinner, and his friend is from Vegas or from Nashville. He said, okay, whatever. He's a. He's written songs for. For these people. And I just had dinner with him like, a week before, and so I'm home. And I. And so I said to Simon Cowell, I said, oh, by the way, I just met this guy, and he also is a fan of this singer. And he had never met. Met the singer before. He never listened to the show. But I said, oh, he's interested in writing songs for so and so, because I wanted to get to know Simon Cowell. And so I. And Simon does not have a phone, and his fiance was there, and he said, oh, you know, take Randy's number and, you know, let's see if we can make the intro or not. But I took my shot at Simon. How'd that go for you? I'm glad I did it. You know, it's like, I love Simon Cowell. I want him on my show. I will get him on my show at some time. Great businessman, by the way, as well. But, yeah, I wouldn't do it at your club unless he's sitting next to me.
- [43:46]
John Terzian
He would be escorted out.
- [43:47]
Randy Kaplan
So I do want to talk about Post Malone a little bit more. You get a lot of really cool things, and one of the cool things was you're in one of his songs, and the song is called Cooped up, and I'm going to just read you the lyrics. Okay. All right. And I'm not. I'm not going to sing them.
- [44:03]
John Terzian
You're not going to wrap it.
- [44:04]
Randy Kaplan
I. I actually am not going to. I'll put a little bit of a beat there, but it's. Yeah. I'm off the bud Light not the bourbon I might chop the roof off the suburban Tried to be a nice guy John Terzian. Wow. Till I started throwing your bur. Till I started throwing up in your birkin Ooh. Then I woke up in the morning Police showed up at my door with a warrant that I remember flushing something down the toilet Flush, flush. Guess he gotta let me off with a warning.
- [44:37]
John Terzian
You should actually. This. That could be. Your whole show is doing reading verses of, like, raps and rock songs. So incredible.
- [44:45]
Randy Kaplan
So.
- [44:46]
John Terzian
Especially when you did Skirt, Skirt.
- [44:48]
Randy Kaplan
So my. My question to you is, are you close enough? I mean, we're good friends. You've done some nice things for me. Are you close enough to Austin where you can ask him to put me in one of his future songs?
- [45:03]
John Terzian
I am, but I won't.
- [45:06]
Randy Kaplan
You don't want to help. It's like, that's on my bucket list. I'm sure it's on my bucket list.
- [45:12]
John Terzian
I'm sure it is.
- [45:13]
Randy Kaplan
I'll make a. I'll make a donation to charity. I'll. I'll donate to his favorite charity.
- [45:17]
John Terzian
I will take that into consideration. Yeah. He's never heard that before. Being paid to be in a song.
- [45:22]
Randy Kaplan
A lot of people don't know this, but fiction writers, fiction writers, people will pay charity to be named as a character in fiction books. This is a very common thing. John Grisham, all the big authors I didn't know that do stuff like that. Yeah.
- [45:35]
John Terzian
Wow.
- [45:35]
Randy Kaplan
Yeah. I mean, I think it's a brilliant idea. They get paid like let's say John Grisham is writing a new book and John Grisham is some charity thing and someone will pay. You could pay John Terzi and put me in the book. Cool. And the money goes to charity.
- [45:51]
John Terzian
I like that.
- [45:52]
Randy Kaplan
Yeah, I think it's great. You should, you should auction off. It's like the chicken tenders is like named after a stadium. Stadium rights. But I think, you know, some of these other dishes. Mike Melvin has a dish, doesn't he?
- [46:06]
John Terzian
At Craig's.
- [46:07]
Randy Kaplan
Yeah, his. Oh, his dish of Craig's.
- [46:09]
John Terzian
Melman honey chicken or something.
- [46:11]
Randy Kaplan
Yeah, Mike's coming on the show the best. I decided to have him.
- [46:14]
John Terzian
Great, great man.
- [46:15]
Randy Kaplan
Elements of success. How important is brand building? What you've done with H. Wood, as in your success.
- [46:22]
John Terzian
I think it's the number one Paramount. I think it's. I think brand building is the key to kind of anything we do.
- [46:31]
Randy Kaplan
One of, one of the things that I know has made you successful and you're going to be a little bashful about this is you're a great friend to your friends and everybody will sad about you. I mean I meet people all the time. Your name comes up on a regular basis. Oh, nice guy. Ters is the best. You know, you're one of these guys that no one says a negative word about ever.
- [46:53]
John Terzian
I appreciate that.
- [46:54]
Randy Kaplan
I mean rarity appreciate that. Your friendships and your relationships, how important have those been to your success?
- [47:00]
John Terzian
I think they've been everything for me. I would not be sitting here doing any of this without. Without the friends and family that I have along the way. They're like a full network of just. I don't know. It's weird. It's like you feel like you have this. I, I have a full support team of like people that are, are so reliable and so I'm, I'm, you know, I go overboard for any friend of mine on purpose, you know, where I want them to make sure that they have that same for me, you know.
- [47:33]
Randy Kaplan
I'm going to share my bachelor party for you. One of the highlights of my life. Madison and I both had it in Vegas. You said I crashed a bachelor party. Boys did something one night, the girls did something the next night. We went to the Hakkasan, the next night, Calvin Harris is playing. We're in the DJ booth. I'd never been in the DJ booth. Loved it. One of the highlights of my life. I mean, still does that sound. And I remember saying to one of my friends, Josh, you know, we're. Then all the champagne came out. Randy, Randy, Randy. And, you know, we're looking. We're drinking. We've had a lot to drink. And I said to Josh, you know, he said to me, yeah, we got to do this again. And I looked at him like, dude, we're never coming back here again. Like, tough. Although it did happen again. But that's another story for another lifetime. On the flip side, on the flip side of this, can you be an asshole and run a successful nightclub?
- [48:29]
John Terzian
Yeah, I think there's plenty of assholes that run. Run places. You know, I think you can be successful. I think. I think it'd be hard to have some longevity.
- [48:38]
Randy Kaplan
One of the things you're great at as well, in terms of relationships. You text five people every morning. Random people, hey, how you doing? Checking in. Anything I'd help with?
- [48:49]
John Terzian
Yeah, huge. Yeah, it's great. Yeah.
- [48:55]
Randy Kaplan
When I was a law clerk, I worked at this big firm in Detroit. Most successful firm. I was there for the summer. And they let you. The partners could take you out one on one for lunch. You would ask all the partners. And there's a guy named Dick Burstein who was the biggest rainmaker in the firm. And to the point where he wasn't really practicing law. I mean, he was, but he wasn't senior partner. He doesn't do the work. The junior people do the work, but he's networking all day. I said, you know, Dick, what's the secret? And he said to me, he said, I'll text three clients every single day. How are you doing? Is there something I can help with? And he had. I mean, back then, eight, $10 million book of business. This was 30 years ago. I was massive biggest rainmaker in the entire firm.
- [49:37]
John Terzian
You know, it's. I had never heard that story, but it's a good one. It's that. It's that extra personal touch that I think most people like overlooking you know, and to me, I genuinely mean it and enjoy it.
- [49:50]
Randy Kaplan
You know, you often don't tell people that you're coming to your clubs or your venues. And one of the things that you've said has made you successful as well was just listening and watching. Yeah, talk to us about that.
- [50:02]
John Terzian
I kind of view myself as like an ultimate observer. So I like to see what people are gravitating to or talking about or liking or disliking. And you know, it's, it's sometimes hard get to hear what people dislike, but I think it's really good. And so I, I try to, I try to be as stealth as possible. A lot of the nights and other nights I'm just there and I just like to like, observe and watch. But it's a good way to know what's like working, not working, new places. Like it's a, it's, it's a whole thing.
- [50:37]
Randy Kaplan
One of the main ingredients that's made me successful, something called extreme preparation. I'm writing a book on extreme preparation. That means when someone prepares for a podcast, one hour, I prepare on average 14 hours. How important has extreme preparation been to your success? And can you give some examples?
- [50:53]
John Terzian
I don't think I'm on your level of extreme preparation.
- [50:55]
Randy Kaplan
Well, just give some examples of where you've really prepared, where you think more than anybody overboard, that's contributed to a positive outcome.
- [51:04]
John Terzian
When I, when I am up for something that we want for business wise, so a new space in a, in a hotel or a new investor group or whatever, I do an obscene amount of kind of background, deep dive on who they are, their family, their, what they like, dislike, kind of all that, and really try to like, really try to like use that in a, in a positive way. I mean, on what I'm, you know, what I'm gearing towards so that, you know, I go in there with like kind of a leg up. And I think that's been a major reason on why I've gotten some, some certain, you know, venues of ours or some deals. Most recent, you know, was, was an investor group, you know, I prepped for, I don't know, a week or two on just every aspect of it. And when I went in that door, it's funny, when you go in the door, it's like, it's all that preparation. It comes a lot easier when you're, when you're in there, you know, so it does matter. It makes a big difference.
- [52:11]
Randy Kaplan
Work ethic is huge. SAE House at usc.
- [52:14]
John Terzian
Yeah.
- [52:15]
Randy Kaplan
Rumor was you didn't even have sheets on your bed. It was just a pillow because you're out all the time. This crazy work ethic that you never sleep.
- [52:23]
John Terzian
Yeah, that's true. Actually. I, I did not have sheets on my bed for like two years.
- [52:29]
Randy Kaplan
You come home late and you just kind of crash out.
- [52:32]
John Terzian
Yeah, yeah, I sleep maybe four out, four or five hours a night at most. It's like my, it's always been that way. It's like a gene or something, I don't know. Or I'm gonna hibernate for three years one day.
- [52:45]
Randy Kaplan
You start your day typically at 7:30, 6:30 day. At 6:30 you're in the office all day. Come home for dinner, a few hours rest and then you're out. Two or three venues a night, often coming back from 2 to 2:30 in the morning. It's brutal on the body.
- [53:01]
John Terzian
Yeah, it is. I mean, you know, what's, I have to, what I'm doing more and more is I've been doing that for so long. What's more important now is a balance of my kids and wife and family life and work. So I try to have, you know, two or three nights fully off. I'll leave the office at five, you know, type of thing. I take my kid to school every morning now, that type of stuff. As far as the like, you know, late night, early morning, you know, I'll, I, I just went, I, I the other day I was like super tired and I was like, I wonder what's so weird. And I, I literally had forgotten that I missed an entire day of sleep. I had come, I'd flown back on something. I just completely skipped a day of.
- [53:43]
Randy Kaplan
Like for the Super Bowl.
- [53:45]
John Terzian
Super bowl, our event. Just completely skipped it. It's crazy.
- [53:50]
Randy Kaplan
Let's talk about that business event business. It's more profitable margin wise than the restaurant business. How does that all work? What kind of profits do you make and can anybody get in?
- [54:05]
John Terzian
Well, each event is different. So we're fortunate enough to have a really good partner this year and last year too. But this year with DraftKings, they're amazing with us. And so the whole thing was just have a great event, you know. So this was all invite.
- [54:23]
Randy Kaplan
Mostly invites or do you get invites like, like the players do to the Super Bowl? They get two tickets each where you can say, all right, I've got 10 buzz who get in.
- [54:31]
John Terzian
You mean who we're inviting?
- [54:33]
Randy Kaplan
Yeah. No, if it's a private party, pretty.
- [54:35]
John Terzian
Much everyone's plus one. No, it's, it's H. Wood and drought. Yeah.
- [54:38]
Randy Kaplan
Oh, you both have to invite people.
- [54:40]
John Terzian
Yeah.
- [54:41]
Randy Kaplan
Okay.
- [54:41]
John Terzian
Yeah, yeah.
- [54:43]
Randy Kaplan
But I can come next year. If I'm going to the super bowl and you guys are doing the party.
- [54:46]
John Terzian
You're good. Yeah. Okay. But in most years, you know, we get a sponsor, we sell tables. It's very. It's. It can be really amazing. You know, next year is in San Francisco. Year after is in la. So those will probably be big ones, you know, where we sell tables and sponsors and the whole thing.
- [55:04]
Randy Kaplan
People who don't know give. These are massive parties. Give people an example of what the budgets are for these and how many people are actually coming.
- [55:12]
John Terzian
I mean, it varies. You know, we did. We did a Super bowl party that I think was 10 million or something.
- [55:20]
Randy Kaplan
$10 million budget. Yeah, the sponsors spent $10 million. What do they get out of it?
- [55:26]
John Terzian
Well, what you get out of it is, besides press, is the whole idea is experiential. So you're entertaining. They're entertaining their. Whatever corporate clients or whatever it might be, they might be launching a product. It just all varies in that regard. But on average, I'd say the events that we do that are like, big off site because we try to have, you know, we do Coachella, Monaco, Cannes Film Festival, super bowl, you know, NBA All Star. This weekend we're doing in San Francisco. I'd say on the most part, you know, it's anywhere from 500 grand to a million, you know, type of budget.
- [56:06]
Randy Kaplan
Then you have your own parties, too. You throw this white party on July 4th.
- [56:10]
John Terzian
Yep.
- [56:10]
Randy Kaplan
People can pay to go to that one in advance.
- [56:13]
John Terzian
No, no, you. We do sell a handful of tables, but everything else is all invite.
- [56:19]
Randy Kaplan
I saw your VIP host, John Hines made some funny post on Instagram right before the white party stopped DMing or texting me about the White Party. The answer is no.
- [56:36]
John Terzian
Yeah, that became a big. That became a big one.
- [56:38]
Randy Kaplan
You started a film and TV business as well.
- [56:41]
John Terzian
Yep.
- [56:41]
Randy Kaplan
You did a great documentary in 2022 called Call Me Magic. You have some movies and things in development with Kid Cudi and Post Malone. Tell us. Pardon me, Kid Cudi. Kid Cudi. Tell us about what you're doing there.
- [56:54]
John Terzian
Well, you know, we started. I started Ancient Media about four or five years ago, and the idea was that, you know, I'm the type of person I am to this day, that if I introduce two people or I do whatever, I don't expect anything. I want everyone to go on and do their thing. And it became. I was doing that so much with friends of mine that were talent that were whatever I was, you know, putting so many deals together. They're like, you know, you should be. We actually want you in business with us. And so what I did was created H1 Media with, you know, Brian and I created H1 Media as like the non hospitality army. So we manage our, our kid Zach Bia in it. Dj. His career is blown up, blowing up massive. But the idea was like music, tv, film, all the above. But what it's really morphed into besides managing Zach is, is the film and documentaries and tv because we love it. I mean it's a very similar skill set to the. What we do with building places, being a producer side. So, you know, we have access to capital, we have great talent relations. I think we have good taste and you know, we kind of get stuff done. And so that's the true essence of a producer. And so we started with they Call Me Magic, which was Magic Johnson's documentary. And we're in the middle of a few other documentaries now. Basquiat documentary. And then we have a handful of feature films that are on the slate that are going. So to me it's amazing. You know, I really love that world. There's a ton of synergy with what we're doing. And we had our first indie film, just got into south by Southwest. So it's going to go on March 12th there.
- [58:31]
Randy Kaplan
What's it called?
- [58:32]
John Terzian
Idiotica.
- [58:33]
Randy Kaplan
What's it about?
- [58:35]
John Terzian
It's about a young girl in her family and she grows up. It's a comedy. And grows up in the Russian district of West Hollywood. You know that like little Russian pocket. She aspires to be like a fashionista and it's a really fun little comedy and it's cool.
- [58:52]
Randy Kaplan
So Magic knows everyone in town, knows every studio head. He's. How on earth did you, how on earth did you get Magic to allow you to make a documentary on him when you never produced any TV or movie in your lifetime?
- [59:07]
John Terzian
That's a good one too. You know, it's kind of like everything I've done in life, you know, it's, it's. I just straight. I stay true to things, you know, the way I approach it with Magic. So Magic called me or his team did about opening sports bars and you know, I, I kind of a long winded way, I kind of was like without. Let's, let's put that to the side for a second. I have this idea because I'm launching this media and this is before the documentary craze. This is before Jordan. Everything was Right before. And I said, look, I'm an outsider, I'm an entrepreneur and what I want to do is make your life story and I'll bring in the best of the best, finance it all, do it all. I didn't know how I was going to do that, by the way, but I did. And he liked what I had to say. He liked the fact that I was not in the film world. He liked the fact that I was a little bit of an outsider and hungry to do a great project and to pay for bringing all the right stuff. And so we did and he agreed to it. And I stayed true to my word. We got great people involved and it ended up being a massive thing. We sold it to Apple, a great project.
- [60:17]
Randy Kaplan
So a lot of people don't know how that works either. So people think, oh, you're making a documentary and it's like a non profit thing, you know, it's just like you're making the movie. How do the economics of a documentary work?
- [60:28]
John Terzian
I mean, it's the same thing as anything. It all varies. However much you make for it, what you can sell it for, you know. So, you know, for the most part, documentaries are low. This was a massive one. Magic, thanks to Magic's name and who he is and the product that they made was great. It was a great sale. But for the most part, yeah, documentaries are, you know, a little bit more. What's nice about documentaries is they're faster to make. So that's pretty great. Yeah.
- [60:56]
Randy Kaplan
Magic came to our charity event called Imagine ball for Imagine LA. We started this thing. Thing going on 10 years ago now.
- [61:03]
John Terzian
Yep.
- [61:03]
Randy Kaplan
I'd start an event called the Justice Ball. And yes, I. I mess up when, you know, we're getting up there. Welcome to the Imagine Ball and it's the Justice Ball. That was a very funny moment, by the way, where, you know, wild moment. Yeah. You looked at me, I said, welcome to whatever, the Justice Ball. And you look at me.
- [61:20]
John Terzian
I mean, that was actually crazy.
- [61:21]
Randy Kaplan
Yeah, I know. Still have it on film, by the way. Oops. You know, we. You're nervous up there. Whatever. So we started this event. House of Blues was our first, I think two events. I had started the Justice Ball for a nonprofit law firm, Betzed Legal Service that ran for a long time, raised millions of dollars. And then I wanted to do something new and I said, you know what, John would be a great partner in this. Let's create this thing together. And I think we talked about various things. We wanted an organization that didn't have a Big fundraiser that we would be kind of the main action. Yeah. You know, rubber chicken dinner. And then we built this great thing together. I mean, you, at the end of the day, raised most of the money, probably 90. 90% of the money within your venue. You donated to the venue. You had magic come. Serena, Kevin Hart this year. How important is philanthropy to our success?
- [62:17]
John Terzian
Well, you know, I. From a young age, I was always big on giving back and doing. Doing good as much as possible. So I think it's really important. You know, I think people need to do more of it. I currently do quite a bit for Children's Hospital. It's a big one for me, but, yeah, I think teach their own on every. On that. But for me, I think it's important.
- [62:37]
Randy Kaplan
We're at the end of our show, and I always finish the end of my show with a game called fill in the blank to excellence. All right, ready to roll?
- [62:43]
John Terzian
Let's do it.
- [62:43]
Randy Kaplan
All right. The biggest lesson I've learned in my.
- [62:46]
John Terzian
Life is not get too down.
- [62:49]
Randy Kaplan
My number one professional goal is own a hotel. By the way, we've talked about this now for years. So what's happening on that front?
- [62:58]
John Terzian
I'm in the hunt.
- [63:00]
Randy Kaplan
Tough to buy a hotel these days, you know, lots of. Lots of economic issues.
- [63:03]
John Terzian
Everything's tough. But one day, one day it'll come together.
- [63:06]
Randy Kaplan
My number one personal goal is have my wife happy. You have an amazing wife. Shout out to Lonnie.
- [63:11]
John Terzian
Shout out.
- [63:12]
Randy Kaplan
The one thing that everybody should say to themselves when they wake up in the morning is you woke up. The one thing that people should say to themselves when they go to bed.
- [63:20]
John Terzian
At night is some version of relax. Some version of turning your mind off. My biggest regret is probably not passing the bar.
- [63:27]
Randy Kaplan
You could still do it.
- [63:28]
John Terzian
No, definitely not.
- [63:30]
Randy Kaplan
That was hell, man. That was rough. My biggest fear is failing. The most proud moment of my career.
- [63:38]
John Terzian
Is, I think, the opening of Delilah. Vegas was most proud moment of my professional career.
- [63:44]
Randy Kaplan
The craziest thing that's happened in my career is all of it.
- [63:49]
John Terzian
It's a crazy career that I'm very thankful for.
- [63:52]
Randy Kaplan
The craziest thing that's happened in one of my clubs is I got protested.
- [63:55]
John Terzian
By PETA for having a llama in it.
- [63:57]
Randy Kaplan
Nice.
- [63:58]
John Terzian
The llama was happy, though.
- [63:59]
Randy Kaplan
Nice.
- [64:00]
John Terzian
Had a good night.
- [64:01]
Randy Kaplan
The best advice I've ever received is.
- [64:03]
John Terzian
Play the long game.
- [64:04]
Randy Kaplan
The worst advice I've ever received is take the money. If you could name one trait that would make somebody successful, it would be.
- [64:10]
John Terzian
You can't ever buy back your reputation.
- [64:13]
Randy Kaplan
If you could give your three kids one piece of advice, what would it be?
- [64:16]
John Terzian
Do what you love.
- [64:17]
Randy Kaplan
Ten years from now, I'm going to.
- [64:19]
John Terzian
Be doing a bigger version of what I'm doing.
- [64:21]
Randy Kaplan
20 years from now, I'm going to.
- [64:22]
John Terzian
Be doing a much bigger version of what I'm doing.
- [64:24]
Randy Kaplan
The most important thing that's contributed to my success is all my support.
- [64:28]
John Terzian
Friends and family support.
- [64:29]
Randy Kaplan
The one thing I've dreamt about doing for a long time but haven't is.
- [64:33]
John Terzian
I'm trying to think without being a hotel.
- [64:35]
Randy Kaplan
If you could meet one person in the world, who would it be? Dead.
- [64:38]
John Terzian
Is Steve Jobs alive? I don't know.
- [64:42]
Randy Kaplan
I'm gonna digress about my Steve Jobs story immediately. Once.
- [64:45]
John Terzian
Here we go.
- [64:45]
Randy Kaplan
I was at Four Seasons, Hawaii. Kona.
- [64:48]
John Terzian
Yep.
- [64:49]
Randy Kaplan
And there was a resort next door called Kona Village. And Steve and his family came over for dinner one day, and he was at a table far away from everyone else. And my ex wife, my wife at the time said, steve Jobs is sitting over there. You're gonna go say hello? I said, no. Having dinner with his family. Said the old Randy would have. I was already out of my chair when she said that. So I go over, I'm walking over. It's a long walk. And it's Steve, his wife, two kids, and I'm standing right at the table. He didn't even look up. Literally, I'm like, okay. So I said, Excuse me, Mr. Jobs. I'm Randy Kaplan, co founder of Akamai. They had invested $25 million in our C round.
- [65:32]
John Terzian
Yeah.
- [65:32]
Randy Kaplan
And it tried to buy our company. They put in 25 million to $250 million valuation. And so he said, you're a co founder of Akamai? I said, yeah. He said, you must have made a lot of money. Weirdest thing. And so I said, yeah, we all did. Well. And by the way, at the time, Apple was nowhere near what it was today. There were rumors it was going out of business. Yeah, right. They had a 1% market share of the PC market, so they must have made a billion dollars on this deal. I mean, it's a stretch to say we helped save the company, but it certainly didn't hurt. And so I'm standing there and I'm thinking, oh, gosh, you know, I need to say something. So I said, I loved your Stanford graduation speech. And he said, thank you. I was dismissed. And I walked back to the table with my tail between his legs. But at the end of the day, I was glad I did it. Yeah, you met Steve Jobs. I met Steve Jobs.
- [66:25]
John Terzian
You also never want to meet your heroes.
- [66:27]
Randy Kaplan
What's that?
- [66:28]
John Terzian
You never want to meet your heroes.
- [66:29]
Randy Kaplan
You never do.
- [66:30]
John Terzian
That's the rule of thumb. They're always going to disappoint. I do, clearly. From Steve to Simon.
- [66:37]
Randy Kaplan
Steve to Simon. Simon Cowell is not my hero, but I do think the word of them. Simon, I hope you come on my show. If you could meet one celebrity in the world that you already don't know who you'd like to have dinner with, who would it be?
- [66:49]
John Terzian
Michael Jordan.
- [66:50]
Randy Kaplan
You haven't met Michael yet?
- [66:51]
John Terzian
No.
- [66:51]
Randy Kaplan
I'm sure you could. You know everybody.
- [66:54]
John Terzian
I don't know. I don't necessarily care about meeting people.
- [66:58]
Randy Kaplan
But they have fascinating lives for me when I meet celebrities.
- [67:01]
John Terzian
But you like that.
- [67:02]
Randy Kaplan
Yeah, I don't. It's not the celebrity. It's not for their sake that they're famous. I like learning about people. Uber drivers. I get the whole history of their life.
- [67:13]
John Terzian
They're actually pretty interesting.
- [67:14]
Randy Kaplan
They have the greatest lives. I love to. Well, they don't have the greatest life. They have the greatest stories.
- [67:19]
John Terzian
Stories. Yeah. Yeah.
- [67:19]
Randy Kaplan
Right. And it's like, I, I, I want to know.
- [67:21]
John Terzian
I hear you.
- [67:22]
Randy Kaplan
What the custodian in the building is doing. And, and I always talk to them and I, I want to know what the CEOs and the founders are doing. I find it fascinating. If you were President Trump, what's the next thing you would do tomorrow?
- [67:32]
John Terzian
Somehow, whether you fake it or not, somehow instill some sort of uniting people.
- [67:37]
Randy Kaplan
The one question you wish I had asked you but didn't is I think you answered.
- [67:41]
John Terzian
I think you asked everything.
- [67:42]
Randy Kaplan
Got to give a shout out to your partner, Brian Toll.
- [67:46]
John Terzian
Yep.
- [67:46]
Randy Kaplan
And all the other amazing people that you've introduced me to. Appreciate all the relationships, the friendships.
- [67:52]
John Terzian
Appreciate you.
- [67:52]
Randy Kaplan
It's been so fun and awesome to watch you guys grow because I, I met you, you were really the transition period and just, it's so awesome to see what you guys have done. So happy for your success.
- [68:03]
John Terzian
Thank you.
- [68:04]
Randy Kaplan
Congratulations on everything you've done. Thank you for being really an amazing, amazing friend.
- [68:09]
John Terzian
Thank you. Appreciate you, Randy.