Strobe Inc. is a large trendy warehouse nightclub in Melbourne’s inner Eastern suburbs. Here, patrons can enjoy a dance floor where DJs play loud electronic music and bars with a variety of non-alcoholic and alcoholic beverages.
The business is jointly owned by friends, Jose and Ellie, who met in an information systems workshop during their undergrad at RMIT. Jose takes care of the accounts/finances whilst Ellie manages Strobe Inc.’s nightly operations. They employ 3 security guards, 5 bar staff and 1 cleaner who are paid by the hour. Security and bar staff finish work depending on how busy the venue is so their hours can vary a little. Staff receive pay rises which apply from the 1st Jan each year. The DJ is paid a flat fee depending on the nights worked e.g. it varies from $500 on Thursday up to $800 Saturday. Jose and Ellie pay themselves out of the profit of the business.
Since opening in 2018 business has been booming, with upwards of 300 patrons on most nights. Strobe Inc. is open from 7:00pm to 7:00am nightly, Thursday evening to Monday morning. They charge an entry fee after 11:00pm which depends on the night- Friday and Saturday $30 and Thursday, Sunday $15. Currently they serve packaged snacks (eg chips and nuts) but no cooked or fresh food, mainly because they don’t have proper kitchen facilities. They keep their pricing simple with a profit percentage on all drinks and snacks.
Recently (since Jan 2020), leasing and other costs have increased significantly and Jose and Ellie are concerned this will put the business at risk of shutting down. Additionally, with construction completed on an apartment block next door, they have been receiving noise complaints from their new neighbours. They have not kept detailed financial records of the business- just nightly takings of drinks, snacks and entry fees. They pay their staff cash at the end of each night based on hours worked and have recorded the hours and pay for each staff member.