Just a week ago, SoHo House went private, after a four-year experiment of going public, unable to maintain its level of customer service as it scaled from 33 locations in 2021 to 48 existing or planned in 2025.
These two independent announcements taking place in such a short time paint a picture of an industry rocked to its core. These two membership-based clubs are the leaders in an old-school model of social belonging and identity. This paradigm has proven insufficient to adjust to the rapidly changing nature of the economy and evolving customer demand.
Simply put, leasing space for a social club or a coworking space is not a viable business model for the present day.
Tavern Community is creating an asset-light business model. A model that focuses on community building and leaves leasing out of the equation. A model that instead of burdening the organization with expensive leases and responsibility for building maintenance, establishes strategic partnerships and relationships to help support existing hospitality businesses. The announcements from NeueHouse and SoHo House confirm the timeliness of this core thesis.
People want the feeling of community that a social club provides. They want the feeling of community that a coworking company provides. The problem with these spaces isn’t a lack of demand, but the high risk and unsustainability of the business model.
The social clubs and coworking companies of the future are the ones that operate independently from owning or leasing space but still figure out how to make meaningful offline social connections possible.
To become a member of Tavern Community, download the Tavern Community app and click ‘membership details’.
A Physical Social Network℠ 
Leave a comment