By SexHerald Staff
The first time we met Eric Langan, President and CEO of Rick’s Cabaret
International, Inc., he treated us as welcome guests and gave us a cordial
tour of his New York establishment, from the strippers’ locker room in
the basement to the main floor and the handsome restaurant area on the second
floor to the VIP rooms on the third where curtains are available for a more
discreet patronage for customers. The staff, or non-entertainers, were all
elegantly attired, and even the ladies all wore floor-length gowns.
Apart from the finery, we found in Langan a down-to-earth straight-shooter
who takes and gives no bull. Even as he proudly mentioned Rick’s was
the only gentlemen’s club to be publicly traded on the NASDAQ, his real
pride and joy rests in his children who he visits almost every weekend in Texas.
As the executive recounted stories of his past life and enumerated events
that shaped his current present, including his firsthand experience with the
law, SexHerald found in Langan a man who is devoted to his line of work and
desires to raise the bar in a profession that has moralists and mainstream
media running for cover.
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SexHerald: So, what were the deciding factors that made you
end up in the line of gentleman’s clubs? Do you have an entertainment
background?
Eric Langan: Actually, I was dating a dancer when I was in
my 20s. I was hanging out at the club every night. I was watching all the money
the club was making. We shared an apartment and we had six women living with
us who we were taking to work everyday. I thought, ‘We’re taking
them to work; why don’t we take them to work in a club that we own?’ Basically,
I sold my baseball card collection and leased an old club in Fort Worth, Texas
and opened up and did very well.
SH: Were you born and raised in Dallas-Fort Worth?
Langan: I was actually born in Illinois. We moved to Dallas
when I was young and lived there until I was 23.
SH: Were you a public-school child?
Langan: Yes. We moved a lot when I was young. I was always
having to make new friends so nightclubs: this is all pretty easy for me.
SH: Were you an army brat?
Langan: No, my dad would open a business and sell it or close
it, move on and build something else. So, we just moved a lot. He was going
to open a restaurant and help me with business but that fell through. My dad
owns a lot of restaurants. When I was young and we moved to Texas, he started
getting into other businesses.
SH: So what was it like being in your 20s and selling your
baseball card collection?
Langan: Well, when you’re 21 you know everything. So,
it’s easy, right? I worked about 17 hours a day, six days a week. I did
everything from serving drinks to whatever needed to be done. At that point,
you’re doing everything. At that time, I was arrested 13 times in the
first three or four weeks we were open for operating too close to a residence.
We were in violation of ordinances that were considered unconstitutional, but
the local Neighbors’ Association decided they were going to have the
city enforce the ordinances anyway. We got a lot of publicity on MTV; it just
packed the place. It was good advertisement. We took the money there and poured
it into a club in Texas. My first club was 1,600 sq. feet. It was 80-ft. long
and 20-ft. wide. It was very small. The women come in, put on their G-strings
or thongs, play a few songs and dance on stage. The bartender was the DJ with
a little microphone.
SH: When did you move from Texas to New York?
Langan: We got here last October. We’ve been staying
in hotels. I wanted this building across from the club because when I was in
Minnesota, I actually set up an apartment in the basement of the club and stayed
in there for three months. Here, I wanted to be able to leave the building.
I’m very hands-on and in the open. I want to be there, I want to make
sure everything’s right, teach the employees to do things.
SH: Why did you choose New York?
Langan: Well, we were looking at Las Vegas, originally. When
Arthur Goldberg was still in charge of the company, we were a shoo-in for the
Ritz at Caesar’s Palace. When Arthur died, the Hilton people came back
in and basically eighty-sixed the deal. So, the next logical choice was New
York. We needed a major market, a flagship location, a place where I can bring
financial analysts, brokers and club managers to show them how we would consolidate
within the industry and create a national chain. What we really want to do
is a cross between Hooters and Hard Rock Café. We want the merchandising
of Hard Rock Café and we want the brand name recognition and sex appeal
of Hooters.
SH: Imagine yourself in ten years. All the capital investments
have come through. How many cities would Rick’s be in?
Langan: Thirty to forty, all in major markets. Some of the
markets will obviously take longer to be available.
SH: Have you set your sights on the international level?
Langan: In ten years? Probably. We’ll be looking at
major cites. We’ve talked to some folks in South America, like Argentina,
Brazil. We’ll probably only deal with partners with other people’s
capital. I’m very wary of investing our money in South America right
now. I think you really need to have people that are local who know the government
and who knows the climate. The climate changes down there.
SH: Any other places?
Langan: We’ve looked at London, at Canada. In fact,
I’ve looked at several locations in Canada in the past. At that point,
maybe Mexico City.
SH: You mention “we” when talking about a department.
Who’s the “we?”
Langan: I always say “we.” There’s no “I” in “team.” I’m
from the School of Hard Knocks. My business education was very, very expensive.
My law degree [lawyer] cost me about $275 an hour on average and thousands
and thousands of dollars on top of that. My accounting is probably about $185
an hour. So, I kind of have Henry Ford’s philosophy: I need to know enough
so I don’t get myself in trouble, but I don’t have to be the expert,
because I can hire the expert. And we always try to hire good people.
SH: So, is there a “we” in “team?” Is
there a significant other in your world?
Langan: No. I was married and recently divorced about five
years ago.
SH: Any kids?
Langan: Yes. Two young boys: a five-year-old and a nine-year-old
down in Houston. I moved to Houston when I was 23. Houston will probably be
my main home. All my family’s down there.
SH: How often do you see your children?
Langan: On the weekends pretty much, except only once in
August and one time in September. Then we’ll get back on our routine.
SH: How long have you been a single man?
Langan: A little over four years.
SH: The question that’s probably formed among the readers’ minds
right now is: What’s it like to be a single man in his prime working
in an environment where you’re surrounded by many young good-looking
ladies?
Langan: There’s never a dull moment. The reality of
it is once I took on this New York project, it was very hard. I’m so
work-intent. I have a girlfriend in Houston where we were on/off during the
last four years. When I’m not so work-intense, we would get together
for three or four months then we’d break up for three or four months.
She’s attending school right now, so her workload is intense as well.
I’m single half a year and I consider myself taken half a year. But,
I’m married to my work. I want to consolidate this industry. I look at
this industry as lagging behind. We have about a 15-year lag compared to casinos.
It was very fragmented, it was very Ma-and-Pa-ish, corporate America started
coming in, couple of companies went public like Rick’s, we’re starting
to see bigger chains suck up all the valuable locations, just like casinos
did. I think you’re going to start seeing more of them go public; you’re
gonna start seeing consolidation of those public companies; and, over the next
ten years, you’re gonna get to the point where there’s probably
less than ten operators or around ten operators of the major locations – all
trying to brand and market a national chain, like Harrah’s and MGM.
SH: Looking back, what are some of the funniest moments you
had in your strip clubs, gentlemen’s clubs or whatever you want to call
them?
Langan: Everyone calls them something. I call it a strip
club sometimes. In New York, it’s a strip club. In Houston, it’s
a gentlemen’s club. In Charlotte, it’s something else. Everyone
calls it something different. I just call it work.
I guess one of the funny things is in the old days women weren’t allowed
in strip clubs. And the reason they didn’t allow women in strip clubs
is because they would come in and drag their husbands out by their hair. The
only reason women went to strip clubs was to look for their husbands and drag
them out. I think some of those experiences are the funny ones, when a woman
would sneak past security, and a guy is getting a dance and all of a sudden,
he’s being dragged out. Nowadays, it’s the guy sitting in a chair
and the wife’s getting a dance. So, times have changed.
SH: Why’s the wife getting the dance?
Langan: Because MTV rocks. You know, MTV has taught an entire
generation of women that bisexuality is okay. And actually, they’ve taken
it further than that. MTV made bisexuality cool.
SH: So, what are some traumas your business has endured in
the past decade or so?
Langan: We had two fires in 1998. It was arson. They burned
about 14 clubs in Houston in ’ 97-’ 98. They tried to blame me.
Yeah, like I’d burn down my most profitable location that was under-insured.
We learned a very valuable lesson, though. When the second fire happened, then
they were REALLY looking at me. Because after the first fire, I looked at all
the mistakes I made and, of course, I corrected them. So, when the second fire
happened, we were fully insured. But, that location was making money. It was
making over $ 30,000 a month. Why would I burn down a location that was making
$ 30,000 a month? It makes no sense. And we could never reopen once it burned.
Because we had a parking exemption, then they passed all the laws and changed
the parking. In May of 1998, after Cinco de Mayo, at about 6: 30 or so in the
morning, they set fire to the club. Seeing the employees all crying because
all of a sudden they’re without a job; the dancers having lost all of
their clothes that were in the lockers; that was probably one of the worst
moments for me. There were other moments. We had a club in New Orleans that
opened in early ’ 97. This was before I merged with Rick’s. I merged
with Rick’s in 1998. It was open for about four weeks then we closed
it. We just realized we were in the buffer zone. Seven-hundred block of buffer
zone. Straight people don’t go past 700 and gays don’t go below
800. So, if you’re in-between 700 and 800, guess what?
SH: You’re in no man’s land.
Langan: Exactly. Half a million people stop at the corner;
you can’t get them to walk 41 feet. It’s the craziest thing I’ve
ever seen.
SH: Is there anything that can drag you away from this place
that seems to have chains on you 24/7?
Langan: Just my kids. Those boys can drag me along. If they
call, you know, ‘I gotta go.’ My kids are my hobbies. We go fishing,
we go to Six Flags a lot, we go jet skiing. If I’m not at work, I’m
usually with them. BullsandBears:Rick’sPresidentEricLanganGivesHisVersionoftheBusiness,StraightUp
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