Episode 640: $3 Million Lost: The Crypto Catastrophe That Forced a Retirement U-Turn

Brandon Laroque. Brandon, who owns The Goat Bar in Raleigh, NC, details his extensive career in the hospitality industry, starting from a country club to bartending at a renowned comedy club, which eventually led him to open six of his own bars, primarily using a "flipping" strategy. The core of the discussion revolves around the challenging decision to retire and close his successful, long-standing bar due to mounting stress from employee issues and the difficulty of verifying increasingly sophisticated fake IDs, which led to legal problems with alcohol law enforcement (ALE). However, his retirement was abruptly cut short when he was devastated by the theft of over $3 million in cryptocurrency from a cold wallet. This financial catastrophe forced Brandon and his wife to make the difficult choice to reopen The Goat Bar, facing new bureaucratic hurdles with the city to reinstate expired permits. The segment concludes with Will transitioning into the formal podcast interview, eager to share Brandon's compelling and dramatic story.

10 Takeaways

1. Longevity and Experience: Brandon and his wife have a combined 70 years of experience in the hospitality industry (30+ for him, 40 for her).
   
   
2. The GOAT Bar's Success: The Goat Bar, a dive bar in Raleigh, has been a highly successful "cash cow" since opening in 2003, built on years of hard work, self-maintenance, and a strong local following.
   
   
3. Entrepreneurial Spinoffs: Brandon's experience at Charlie Good Nights comedy club, where he was forced to be hands-on, spawned approximately 30 different bars opened by former employees, including six by Brandon himself.
   
   
4. "Flipping" Bars: Brandon developed a strategy of opening, establishing, and then selling (flipping) bars, noting his favorite part of the business is the opening process.
   
   
5. Growth Challenges: He learned the hard lesson that owning multiple bars brings "three times the headaches and one and a half times the money" compared to a single location.
   
   
6. Impact of 2020: The COVID-19 shutdown (2020) and subsequent reopening severely impacted the business, leading to employee turnover and stress, contributing to the decision to retire.
   
   
7. Sophisticated Fake IDs: A major stressor was the rise of highly realistic fake IDs, often from China, that are nearly impossible for bar staff to verify, even with ID scanners, leading to legal action from ALE agents.
   
   
8. Control State Regulations: The bar operates in North Carolina, a control state, where the state controls liquor sales, which means the bar pays a high tax (approx. 75%) on liquor purchased from the county ABC.
   
   
9. Retirement Derailment: The planned retirement, which included moving to Las Vegas, was unexpectedly ruined by the theft of over $3 million in cryptocurrency from a cold wallet.
   
   
10. Forced Reopening: The financial loss forced Brandon and his wife to abandon retirement plans and reopen The Goat Bar, leading to new challenges with re-securing permits from the city.