Record-High Profits
Unique Bottle Service, Opulent Setting Make 32º Philly’s Hottest Lounge

By Steven Campbell scampbell@oxpub.com

Every major city has its section of town that seems to attract art galleries, quaint cafés, eclectic shops and upscale lounges. In Philadelphia, it’s Old City — the after-work playground of the highly motivated, and mega-successful professional. And nowhere do they play harder than at 32º, one of the hottest hangouts in the Northeast with perhaps the coolest name in the business.

Plush, yet cozy, the club invites premium drinks and good conversation.

Nightclub veterans Barry Gutin, Larry Cohen and John Frankowski decided to build 32º with the intention of raising the bar in terms of opulence, fashion and indulgence. They have succeeded. If you are lucky enough to find the inconspicuous door and make your way up the dimly lit stairwell to the second level lounge, you may get in to this chic watering hole or you may not. The club strictly enforces its 25-year-old age requirement and its stylish dress code.

Buy the Bottle
Once inside, patrons are spoiled in every imaginable manner. 32º provides European-style bottle service featuring the finest liquors, wines and Champagnes. Gutin, vice president of U.S. Hospitality Investments Inc., parent company to 32º, says that bottle service brings an added social component to the lounge experience.

Co-owner Barry Gutin says the club’s European bottle service adds a social component to the lounge experience.

“European bottle service gives people at the table a social center,” Gutin says. “They pour their own drinks. They invite friends over to the table, and they meet new people through the social interaction that is created by that unique bottle service.”

Bottles of premium and ultra-premium liquor range in price from $180 to $2,000 while wines ranges from $35 to $300. Champagnes are available for $80 to $1,800. And for customers not finishing their selections, there is no need for concern. Thirty-six private liquor lockers are available, where guests can keep their unfinished sprits under lock and key until their next visit. And at $1,000 each ($500 goes toward stocking the locker), you would think there would be at least one locker available. There isn’t.

“We are in the process of building four super-lockers at $2,500 each per year,” Gutin says. “The new lockers will be larger and will be placed in a more prominent location in the lounge. And, like our smaller lockers, they’ll have the holder’s name engraved on a silver plate on the front.”

The bottle service is facilitated by a youthful yet experienced staff that tends to the every need of patrons at 32º. The VIP host, attentive cocktail waitresses and a dedicated bus staff ensure that the 32º experience is one of absolute decadence.

Flights and drinks by the glass also are available at 32º, with flights priced from $20 to $30 and spirits by the glass ranging from $9 to $150.

ALL ABOUT THE MONEY

Although 32º, an ultra-sophisticated club in Philadelphia, budgets more than $100,000 for public relations and marketing each year, its best publicity has been free. The club received an extensive amount of press coverage when it began accepting Euro dollars as well as American currency.

The club’s sophisticated style is reflected in its trendy, upwardly mobile clientele.

“We have a clientele that travels a lot, says Barry Gutin, vice president of U.S. Hospitality Investments Inc., parent company to 32º. “When I was following the news coverage about the European market changing currencies, I thought that accepting Eurodollars would be a great opportunity to differentiate ourselves. It turned out to be a great press opportunity. We received exposure in U.S.A. Today and the Wall Street Journal.”

The lounge offers an extensive specialty drink menu as well, including a cocktail complete with a blue light cube that lights the drink from inside the glass. In fact, 32º maintains a $20,000 liquor inventory to assure that guests have what they desire at all times.

An exquisite raw bar also is available to those frequenting 32º, complete with sushi, steamed and chilled prawns, baby lobster tails, oysters, mussels and jumbo stone crab. The offerings are available for one to six people and come complete with tartar and cocktail sauces or with sweet and spicy ginger salsa and lingonberry mignonette.

“Our menu is an accommodation to our guests,” Gutin says. “It is something we like to give to our big spenders rather than just offering them free liquor.”

Besides the food and drink menus, the luxury of 32º also is reflected in the club’s design. Clean lines and the combination of a cold and hot theme are interwoven in the appearance of the space. Sleek metallic finishes, marble bar tops and the integration of cool blue hues set the cold tone while the presence of a fireplace, red lizard-skin barstools, velvet banquettes and mahogany woodworkings support the hot scene. Riscala Design of Somerset N.J. ultimately brought the room together in a manner that was an example of exceptional sophistication.

“The space is very long and narrow, which created some challenges for the designer,” Gutin says. “We ended up with a very angular design oriented on the diagonal of a long rectangular footprint. I think, ultimately, in addition to functionality, the test is how does a room look and feel — I was thrilled with the way the place turned out and the way our guests responded to it.”

Even though 32º is called a lounge, it’s not sleepy. There is a high level of energy created by some of Philadelphia’s most popular DJs spinning house, Hip Hop, Disco and R&B over a state-of-the-art sound system.

Cool Sound

Equipping a rectangular room without creating hot spots can sometimes be difficult but with the assistance of the following equipment installed by Powerhouse Sound of Mount Laurel N.J., the sound at 32 Degrees is very cool.

8 - JBL MS28 2-Way Double 8" with 1" Horn (High/Mid) Speakers
4 - JBL SR4718X Compact Single 18" Subs
2 - Crown MA3600VZ Amplifiers (1Powering MS28 / 1 Powering SR4718X)
1 - Klark-Teknik DN9824 Digital Loudspeaker Processor
2 - Technics SL-1200 M3D Turntables
2 - Ortophon OM Scratch Cartridges
1 - Pioneer CDJ-5000 Pro DJ CD Player.
1 - Rane MP2016 Pro DJ Rotary Mixer
1 - JBL EON 15P G2 powered 2-Way 15" Speaker (Booth Monitor) 

High-Quality Sound
“The sound system is not a big dance floor sound system, but it is a very high-quality sound system, Gutin says. “Because of the very long narrow space, we had to distribute the music throughout the room without hotspots. We used a large number of small speakers along the perimeter of the room instead of having two really big ones at one end.”

32º may be missing one element of a dance club, but that doesn’t stop patrons from shaking it up from time to time.

“32º has the energy of a big dance club in a small space,” Gutin says. “We don’t have a dance floor, but people dance around the furniture, on the furniture and on ledges behind the furniture. It tends to happen later in the evening … There is a great energy in the place.”

All this indulgence did not come cheap. Acquiring the space, some soft costs including legal, renovations and pre-opening salaries required a $400,000 investment. Gutin and his partners took the 2,000 square-foot space and gutted it, replacing all systems including HVAC and plumbing.
The construction work coupled with the décor package made the project a $200 per-square-foot venture.

Just the Right Market
Although 32º is not promotionally driven, marketing and promotion of the club is backed with an annual $100,000 budget, which includes the wages and salaries of the promotions department. To target just the right demographic, 32º utilizes two models that appear at charity functions wearing ball gowns, cocktail dresses or bikinis with the 32º logo on them. The venue also hosts in-house parities for charities and political groups in an effort to target an upscale clientele and introduce them to the club.

A current promotion partners 32º with the Casbah located in the Trump Taj Mahal Casino in Atlantic City. With many people from Philly visiting Atlantic City during the summer, the two clubs struck an agreement where 32º can offer trips to the Kasbah under the auspices of picking up some new customers from the casino in September.

“Where there is a summertime/wintertime situation, you can’t be afraid of working with another club,” Gutin says. “We know people are going to go to the seashore regardless of what I do. I’m trying to find a way to help my existing customers and grab new customers.”

The most effective way to market 32º is to never stop spoiling the clientele, especially the locker-holders.

“We will continue to super-serve our locker holders,” Gutin says. “These are our best customers who spend a great deal of money, so we are providing value-added privileges for them.

“We will be creating events for them, including casino trips, golf outings, baseball games and exclusive complimentary dinners.”

With an unparalleled commitment to lavishness and refinement coupled with a menu made up of the finest spirits and delicacies, 32º is the undisputed pamper-perfect play station. “What you serve is who you are,” Gutin says. NCB


Copyright © 2002, Oxford Publishing, Inc. All Rights Reserved.