The Bloomsbury Ballroom Case Study: Launching and Restarting an Events Venue

Brief
In 2012, Adam received an invitation to return to The Bloomsbury Ballroom as a consultant, extended by the venue's new owner. His history with the venue dated back to its inception in 2006, when he played a pivotal role in its launch under Vince Power Music Group. Following the successful establishment of the venue, he remained onboard as its operator until the parent company faced administration in January 2011.

It's important to clarify that the company's insolvency wasn't attributed to the venue's operations, as all venues, including The Bloomsbury Ballroom, continued to operate profitably. Rather, external factors beyond the realm of venue operations precipitated the company's financial challenges.

The new proprietor, hailing from a background in clubs and bars, aimed to revitalise The Bloomsbury Ballroom and restore it to its former glory. Lacking prior experience in the Events Industry or venue management, the owner sought expertise to navigate the intricacies of event venue operations.

Analysis
Leveraging his in-depth familiarity with the venue and its past operations proved to be a significant asset. However, the objective wasn't merely to replicate the venue's previous incarnation. Instead, he devised a strategic plan aimed at elevating it into a refined and more prestigious establishment than ever before. Following a two-year closure, during which the venue underwent a cosmetic makeover, he set out to assemble and empower the sales and event teams.

Focus
Although the venue boasted beauty, ample space, and versatility, it was imperative to pinpoint the target market for the space. While the venue had previously been recognised for hosting intimate gigs that garnered significant popularity, they weren't always the most financially lucrative option. Therefore, conducting a thorough analysis of the potential marketplace was essential to devise a strategic plan aimed at attracting the desired bookings.

The ideal target areas were as follows :

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• Gala Dinners & Award Shows: An ideal choice for gala dinners and awards shows owing to its exceptional features. With a capacity to accommodate up to 300 guests for dinner, it provided ample space for large gatherings. Its versatile layout included a reception area, facilitating seamless transitions between networking and dining segments. The venue's original built-in stage and advanced AV facilities made it perfectly suited for this market segment. Additionally, the strategic location of the kitchen facilitated seamless service delivery, enhancing the overall event experience.

• Weddings: The art deco gem, proved to be an ideal venue for weddings due to its versatile features. With full wedding license, and benefiting from reception breakout spaces, it offered the flexibility to transition seamlessly throughout the day. Offering multi faith weddings with the necessary breakout spaces for varying religious traditions and a team who understood how to operate to the markets worked well. Situated on a picturesque park, it provided an exquisite backdrop for wedding photos. Additionally, its convenient underground parking, mere metres from the entrance, ensured hassle-free access for guests.

• Bar & Bat Mitzvahs: What made this the perfect setting for Bar and Bat Mitzvah, was the mix of elegance and versatility. Its soaring ceiling heights and adaptable layouts offered ample space for diverse event needs, allowing families to personalise their festivities. Centrally located with ample parking ensured that he resonated with the market.

• Filming: The venue had previously been used in movies such as The Kings Speech and Cemetery Junction. The flexibility and athletics of the venue suited film crews. Parking could be suspended directly outside the venue for their trucks and the venue had more than adequate power to be able to accommodate their needs.

It's essential to strategically select 3-5 target markets when launching a business, rather than attempting to appeal to every possible demographic. This focused approach allows for a more effective allocation of resources and ensures that marketing efforts resonate deeply with the chosen audience. For The Bloomsbury Ballroom, while other markets such as conferences were viable, our primary focus remained on gala dinners, awards shows, weddings, Bar and Bat Mitzvahs. This deliberate selection enabled us to tailor our services, messaging, and branding to better meet the specific needs and preferences of these key segments. By concentrating our efforts on these core markets, we were able to build strong relationships, establish credibility, and ultimately drive success in our chosen niches.

Change
In the past, The Bloomsbury Ballroom operated on a Dry Hire model, allowing clients to rent the venue and manage their events independently using approved suppliers. While we intended to maintain this offering, we also sought to expand our services by introducing a branded in-house option. This strategic decision aimed to broaden our appeal to a wider audience and enhance the profitability of events hosted at the venue.

Dry Hire Model

Pros:

• Requires a smaller team initially

• No need for operational expertise

• Provides flexibility for clients to choose from approved suppliers

Cons:

• Administrative tasks can be cumbersome, such as tracking and creating invoices for each supplier

• Risk of clients forgetting to order necessary services, going off-list, or lacking understanding of event planning, leading to potential issues on the day

• Potential impact on venue reputation due to client mismanagement or oversight

Wet Hire Model

Pros:

• Attractive option for clients and weddings who lack industry contacts and expertise

• Increased profitability for the venue by adding markup on services and holding onto capital until just before the event

• Full control over event operations, allowing for better management of reputational impact

Cons:

• Time-consuming operations may require larger teams to meet client demands

 

• Non-booked suppliers may cease recommending the venue, affecting business relationships

 

• Operational mistakes can lead to lawsuits and greater business impact due to lack of arms-length agreement

The decision to offer both options to clients stemmed from a strategic approach aimed at maximising the venue's profitability and expanding its reach within the market. By providing clients with the choice between a Dry Hire model and a branded in-house option (Wet Hire), the venue sought to cater to a diverse range of preferences and requirements. This approach not only allowed the venue to appeal to clients with varying levels of industry knowledge and expertise but also positioned it as a flexible and accommodating choice within the events landscape. Moreover, offering both options enabled the venue to capture a wider market share by accommodating clients who may prefer the convenience and assurance of an in-house service as well as those who prefer the flexibility and customisation offered by a Dry Hire model. Overall, this strategic decision aimed to enhance the venue's competitiveness, profitability, and overall value proposition in the eyes of potential clients.

Reception
The reception to the implementation of new standards and sales strategies was overwhelmingly positive, marking a significant turning point for the venue. With a clear focus on the identified target markets, the venue experienced a surge in demand and activity, resulting in a flourishing business environment. The strategic alignment with target markets enabled the venue to capitalise on opportunities and operate seamlessly throughout the week, maximising its revenue potential. As a result, the profitability of the venue soared to unprecedented heights, signalling the success of the revamped approach and underscoring the effectiveness of catering to specific market segments. Overall, the positive response and financial success underscored the value of strategic targeting and reinforced the venue's position as a premier choice within its markets.

Learnings
While the relaunch of the venue proved to be a resounding success and continued to thrive over the years, unfortunately, staffing levels did not keep pace with the venue's growth. This dilemma often poses the question of which should come first: the chicken or the egg. Initially, limited capital hindered the ability to employ a full team, as the venue was not yet operating at full capacity. However, once the venue reached its peak performance, the need for additional staff became urgent. Consequently, some team members found themselves significantly overworked. Fortunately, their dedication to client satisfaction ensured that service quality remained unaffected. Nonetheless, this experience underscores the importance of balancing growth with recruitment efforts, as they are integral to the venue's success and must progress hand in hand.