Not Their First Time
When Steve Rubell and Ian Schrager opened Studio 54 in 1977, they had no idea it was going to be an overnight hit. They bought an old CBS studio and turned it into a musical light venue by using old lighting and painting the ceilings black.
However, where were they going to get alcohol? Liquor licenses can be hard to obtain. However, they thought of a great loophole they were able to use to their advantage. The biggest surprise was that it actually worked – for a while.
One-Day Catering Permits
They decided to go for catering permits instead of a liquor license instead. They needed booze, and this was a loophole that they took advantage of. They founded a company called “Broadway Catering Corp”, which explains how they got alcohol for the guests.
Eventually, the Liquor State Authorities got suspicious and asked them why they needed the catering permits. That’s when the nightclub finally got raided. This spelled bad news for the owners.