HUDL Closing Reasons

It is not one thing we can point at.

Bottom line is that we are not generating enough revenue out of our location to sustain the business.

The year started off in spectacular fashion. We were on schedule to brew 20%-25% more beer. We were working to secure funding for our expansion…bringing a kitchen online.

Then summer came and beer sales both at the brewery and in distribution stopped. We invested in increasing our distribution sales and this summer was brutal for us. We were down more than 25%, and were not able to secure our future and the kitchen.

There are a few things that do stick out:

• Every month we get some price increase from our suppliers and vendors. We cannot simply roll that cost up into a cost of a pint of craft beer.
• We need food out of our location.
• We saw a significant drop in traffic.
• Ride sharing cost increased with booking fees, over $50 rides, etc…it used to be $12 a ride from the Strip.
• With all the construction in the Arts District and increase in parking fees…it is a huge challenge to find a space to park now. Then the lots that do have those spaces… have event pricing that skyrockets to $20 and over on a more consistent basis now.
• The government shut down.
• We had next to zero Canadians this last summer and early fall (they made up a significant part of our guests the last five years).
• The craft beer and wine industries have been hit the hardest, as the younger generations are consuming less alcohol.
• I walked the area the last couple of months and spoke with people in the arts district and was told…“We used to come down and grab a few bites and hit 4 or 5 spots. Now we come down for dinner and hit 1 or 2 places.”
• A dinner in January 2025 will cost you approximately 27% more today than it did 11 months ago.
• It simply has become very expensive now.
• Tourism is down…Las Vegas has had a bad wrap around the country for price gouging. There are fees for everything now…really examine your bill/ticket the next time.