What is the controversy with the Soho House?
A short-seller firm criticized the club’s practice of doling out food and drink tokens and alleged some accounting issues. The challenge for Soho House is that its focus on growth, to some members, feels like it comes at the cost of its exclusivity. While the explosion in growth led to an uptick in revenue, it came with a cost: according to more than a dozen New Yorkers interviewed by the New York Post earlier this year, Soho House isn’t cool any more. Soho House’s issue is that it had no business being a publicly traded company.Soho House went public in 2021 and has about 185,000 members and 98,000 people on its waitlist, according to the outlet. The company is expanding to São Paulo, Mexico City, and Portland, Oregon in 2024.There’s always a large number of people that cancel every year and there’s one main reason. They turn 30. Pool impossible, lack of scene, overpriced, events not good anymore. Soho House is basically WeWork.To maintain just the right vibe, Soho House only accepts new members periodically, racking up waitlists that are reportedly tens of thousands of people long.To maintain just the right vibe, Soho House only accepts new members periodically, racking up waitlists that are reportedly tens of thousands of people long.
Why is Soho House struggling?
Soho House struggled because the dynamic changed. Their model concentrates on primary and secondary revenue streams. Primary for them is F&B spend, secondary is membership revenue. The dynamic change was when members saw it is a cool place to work from not just socialise. A “broken business model and terrible accounting” were cited as reasons for why Soho House had “never [been] profitable in its 28-year history”. The global expansion of Soho House was also said to have adverse effects on the member experience such as “overcrowding concerns” and a “decline in service quality”.Shares in Soho House fell about 10% to value it at about $1bn. The company has been targeted by the US short sellers Glasshouse, which recently warned that Soho House was “facing an existential crisis” that was “eerily similar to WeWork”, the once red-hot shared office provider that collapsed into bankruptcy.
Is Soho Farmhouse worth it?
Perfect Mid-Week Getaway in the Countryside. Stunning location and so well maintained. Had a fantastic couple of days relaxing at Soho Farmhouse for a mid-week break. It was our first visit and have already booked our next 2-3 trips over the coming months. Soho Farmhouse is a relaxed environment where you can unwind and enjoy the countryside. Simply wear whatever you feel comfortable in.