Game Changers: Three’s Company

In executing their own personal visions for success in the bar business, Morgan Margolis, Mark Grossich, and Jeff Isaacson are three operators who have elevated their respective companies by creating nightlife brands that are both recognizable in their styles and respected for their status.

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In 2000, Morgan Margolis took a major step in a career spent mostly behind the bar, becoming the operations manager at the newly opened Knitting Factory in Los Angeles. Already an established name in the music industry, having been founded in 1987, the Knitting Factory brand was now under new ownership and expanding quickly nationwide. With an existing venue in Brooklyn, New York, and acquisitions in Boise, Idaho; Spokane, Washington; and Reno, Nevada, Margolis was promoted to Vice President of West Coast Operations in 2005. Believing there was no limit to how much and what direction Knitting Factory Entertainment could expand and diversify, Margolis then took over as CEO in 2009.

“My objective is to push Knitting Factory Entertainment into the future by strategically placing our company into many different, diversified positions in the entertainment world,” says Margolis. “The music industry, like many arts oriented endeavors, is in a constant state of flux, and I want Knitting Factory shifting with these fluctuations and, hopefully, one step ahead of the curve.”

“While the Knitting Factory brand is deeply rooted in music, Margolis has brought into the fold a devotion to the neighborhood bar, which is why he makes it a priority for all Knitting Factory venues to work, whenever possible, as both a music hall and as a tavern for casual patronage.

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Stepping into one of Mark Grossich’s cocktail lounges can be like stepping back in time. As the CEO of Hospitality Holdings, Inc., he has overseen the establishment of seven of New York City’s most venerable and respected bars, renown for their class and upscale environs, as well as their attention to detail—in both the aesthetics and the cocktails.

“The World Bar, found in New York’s Trump World Tower, takes patrons on a global tour with its drinks and its design; The Carnegie Club is one of the city’s premiere smoking lounges and jazz venues; both The Campbell Apartment and The Campbell Apartment Terrace, found in Grand Central Terminal, could be backdrops for an episode of Mad Men, with their classic 1920’s grandeur and cocktails; the Bookmarks rooftop lounge, and wine bar, Madison & Vine, round out his elegant portfolio.

Most recently, Grossich’s company was offered a once-in-a-lifetime opportunity to lease space in one of the most famous locations in the world, the Empire State Building. The newest addition to the Hospitality Holdings family, The Empire Room, is a return to the old world glamour from which the skyscraper itself was created, with sliver leaf designs, embossed leather, and marble tops.

“We get calls all the time from various realtors and business owners and such who are interested in exploring the possibility of us putting a lounge in their building,” says Grossich. “So it was keeping with our basic positioning to come up with an architecturally significant space inside an architecturally significant building, and when we were approached by the Empire State Building, a little research found that the owners were putting half-a-billion dollars into improving the building and restoring to its former luster. They were also reconfiguring the occupant mix to include much larger tenants. So we took a look and thought, ‘This is pretty cool—the most famous building in the world.’ And we really felt it was a situation where we had an opportunity to give the Empire State Building the cocktail lounge it always deserved but never had. And The Empire Room was born.”

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Founded by brothers Rande and Scott Gerber over 15 years ago, and now with over 30 properties in its international portfolio, The Gerber Group is a nightlife brand that has built some of the most innovative bars and lounges in the world. As with both Knitting Factory and Hospitality Holdings venues, you immediately know when you walk into a Gerber bar. The modern stylings draw some of the more upscale nightclub clientele around the world.

“The man behind the daily operations of each and every Gerber venue is Jeff Isaacson, who is responsible for pre- and post-project planning and development and is instrumental in establishing corporate policies, procedures, and training materials. Isaacson has also developed one of the most highly regarded liquor programs in the country by establishing the first prestige national account in the country.

I“When you come to a Gerber Bar, you will know immediately that it is one of our venues because of the service,” says Isaacson. “You can get a Budweiser anywhere, and probably cheaper, but you’re going to come to one of our bars and get a certain level of service. You’re going to get a standard drink—whatever cocktail you buy in Boston is going to taste the same in L.A., in New York, in New Orleans. There is a lot of training to make sure there is consistency in our bars.”

Click here to read the full article “Three’s Company” in the September 2010 Digital edition of Bar Business Magazine