About RCI Hospitality Holdings

RCI Hospitality Holdings, Inc., through its subsidiaries, owns and operates establishments that offer live adult entertainment, restaurant, and/or bar operations. As of September 30, 2023, the company's subsidiaries operated 69 establishments in 13 states It also operates a business communications company serving the adult nightclubs industry. The company also owns and operates media businesses for the adult industry. Segments The company operates through two segments, Nightclubs and Bombshells. Nightclubs This segment operates the company's adult entertainment nightclubs through several brands that target many different demographics of customers by providing an entertainment environment. Its clubs do business as Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Diamond Cabaret, Cheetah Gentlemen's Club, PT's Showclub, Playmates Club, Country Rock Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, Heartbreakers Gentlemen's Club, and Kappa Men's Club, Baby Dolls, and Chicas Locas. The company also operates one dance club under the brand name Studio 80. The company generates revenue from its nightclubs through the sale of alcoholic beverages, food, and merchandise items; service in the form of cover charge, licensing fees, and room rentals; and through other related means, such as ATM commissions and vending income, among others. During the year ended September 30, 2023, the company acquired six gentlemen's clubs, certain related real estate properties, and associated intellectual property through two different transactions. Bombshells This segment operates a restaurant and bar concept that sets itself apart with decor that pays homage to all branches of the U.S. military. Locations feature local DJs, large outdoor patios, and more than 75 state-of-the-art flat screen TVs for watching favorite sports. All food and drink menu items have military names. Bombshell Girls, with their military-inspired uniforms, are a key attraction. Bombshells is also franchising under the company's subsidiary, BMB Franchising Services, Inc., which is approved to sell franchises in all 50 states. In 2020, the company signed a franchise development agreement with a group of private investors to open three Bombshells locations in San Antonio, Texas over a period of five years, and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, all in Texas. In 2022, the company signed its second franchise development agreement with a private investor to open three Bombshells locations in the state of Alabama over a period of five years. The company opened one company-owned location in Arlington, Texas (Dallas area) in 2021 and its first franchised location opened in June 2022 in San Antonio, Texas. As of September 30, 2023, the company had eleven company-owned Bombshells locations, all in Texas with two in the Dallas area, one in Austin, and eight in the Greater Houston area. In December 2022, the company acquired a food hall in Denver, Colorado. In the year ended September 30, 2023 (fiscal 2023), the company opens one Bombshells location in Stafford, Texas in November 2023. Other The company groups together all businesses not belonging to either Nightclubs and Bombshells as Other segment. This is made up of several wholly-owned subsidiaries composed primarily of the company's Media Group and Drink Robust. The company's Media Group is the business communications company serving the adult nightclubs industry and the adult retail products industry. It owns a national industry convention and tradeshow; two national industry trade publications; two national industry award shows; and more than a dozen industry and social media websites. Included in the Media Group is ED Publications, publishers of the bimonthly ED Club Bulletin, the only national business magazine serving the 2,200-plus adult nightclubs in North America. ED Publications also publishes the Annual VIP Guide of adult nightclubs, touring entertainers and industry vendors; and produces the Annual Gentlemen's Club Owners EXPO, a national convention and tradeshow. The Media Group produces two nationally recognized industry award shows for the readers of both ED Club Bulletin and StorErotica magazines, and maintains a number of B-to-B and consumer websites for both industries. Drink Robust is licensed to sell Robust Energy Drink in the United States. Strategy The key elements of the company's strategy include providing an attractive dining experience, and top-notch service; and by focusing on unit-level operating performance. Competition All of the company's nightclubs compete with a number of locally owned adult clubs. The names include Rick's and Rick's Cabaret, Tootsie's Cabaret, XTC Cabaret, Scarlett's, Silver City, Club Onyx, Downtown Cabaret, Temptations, The Seville, Jaguars, Hoops Cabaret, Foxy's Cabaret, Studio 80, Country Rock Cabaret, PT's, Diamond Cabaret, Baby Dolls Saloon, Baby Dolls, and Chicas Locas are proprietary. In the restaurant/sports bar business, Bombshells is also proprietary. Trademarks The company's rights to the trade names RCI Hospitality Holdings, Inc., Rick's, Rick's Cabaret, Tootsie's Cabaret, Club Onyx, XTC Cabaret, Temptations, Jaguars, Downtown Cabaret, Cabaret East, Bombshells Restaurant and Bar, Vee Lounge, Mile High Men's Club, Country Rock Cabaret, PT's, and Diamond Cabaret are established under common law, based upon its substantial and continuous use of these trade names in interstate commerce, some of which have been in use approximately as early as 1987. It has registered its service mark, RICK'S AND STARS DESIGN, and the BOMBSHELLS RESTAURANT & BAR logo design with the United States Patent and Trademark Office. The company has also obtained service mark registrations from the Patent and Trademark Office for RICK'S AND STARS DESIGN logo, RCI HOSPITALITY HOLDINGS, INC., RICK'S, RICK'S CABARET, CLUB ONYX, XTC CABARET, SCARLETT'S CABARET, SILVER CITY CABARET, BOMBSHELLS RESTAURANT AND BAR, THE SEVILLE CLUB, DOWN IN TEXAS SALOON, HOOPS CABARET, VEE LOUNGE, STUDIO 80, FOXY'S CABARET, EXOTIC DANCER, TOYS FOR TATAS, LA BOHEME GENTLEMAN'S CLUB, MILE HIGH MEN'S CLUB, MHMC logo, AFTER DARK, COUNTRY ROCK CABARET, PT'S, DIAMOND CABARET, CABARET ROYALE, BABY DOLLS SALOON, BABY DOLLS TOPLESS SALOON, BABY DOLLS, JAGUARS, and BOMBSHELLS OFFICER'S CLUB are registered through service mark registrations issued by the United States Patent and Trademark Office. As of September 30, 2023, the company had pending registration applications for the names TOOTSIES CABARET, RICK'S REWARDS, VENICE CABARET, CHERRY CREEK FOOD HALL AND BREWERY, and THE MANSION. It also owns the rights to numerous trade names associated with its media division. Governmental Regulations The company holds a Mixed Beverage Permit and a Late Hour Permit at numerous Texas locations. History The company was founded in 1983. It was incorporated in the state of Texas in 1994. The company was formerly known as Rick's Cabaret International, Inc. and changed its name to RCI Hospitality Holdings, Inc. in 2014.