With the profile for affluence becoming increasingly diverse Menlo Circus Club has captured a unique and loyal segment of this larger market by understanding and serving its lifestyle and social preferences.
Maybe the name is the first clue that this club is distinctively different. The “circus” that gave this club its name originated 95 years ago when Atherton was the summer/vacation area for wealthy San Francisco families. Just 40 miles south of the city—and within easy reach by horseback—Atherton (unlike San Francisco) enjoyed hot summer days. A few families bought about 30 acres of land and created an area for their children to create a show on horses. That show grew each year as more kids joined the production and more families came to watch. Three years later, the event—the little circus on horses—had become so significant to these families that they decided to make it a real club with clubhouse and nice grounds. Because of how it was started—with the small children’s circus—they kept the name, “The Circus Club.” Families essentially started the club for their children and today it is still a family club. The club continues its slightly different, somewhat non-conformist and entirely original approach to knitting together the club community in a way that epitomizes the California-lifestyle: informal, active and authentically relational.
Located in Atherton, California, the club is near Stanford University and has a ringside seat to the tech revolution that is changing so many aspects of modern life. Not surprisingly, Atherton is one of the wealthiest communities in the United States. In 2014, Forbes magazine placed Atherton’s ZIP code at #1 on its annual list of America’s most expensive ZIP codes. Menlo Circus Club members can largely afford to go wherever they wish and join whatever club they choose (and there are many in the area). There is no golf course, but horses are on the property and the club has a full complement of activities—swim, tennis and fitness—supported by first-rate facilities.
Clearly it’s the social dimension that provides the club with its energy and center of gravity. They have a social calendar that is full, interesting and fun. But as the manager, Christian Thon observes members frequently “come here for no reason.” Which is to say, they come to hang out and, of course, to be with friends. When going out, members’ children frequently tilt the choice with their chorus “Can we go to the Circus Club?”
There are many things that Menlo Circus Club does well; in this issue of Club Trends we want to focus on the approaches, tactics and philosophies that have allowed this club to flourish in a market where competition for the ultra-affluents is especially strong. The approach may surprise you.
Substance over style. Those who choose the Circus Club are not opting for a highly visible or extravagant display of wealth. Thon explains it this way: “They’re not concerned about a crystal glass, but the water in the glass; they don’t necessarily want a fancy plate with a golden logo, but they do expect the best food.
Value for the price. Make no mistake, the Circus Club is an exclusive club. New members need a strong endorsement from at least eight existing members before joining and the club has always had a very long wait list. The club is not inexpensive, but initiation fees and dues are quite reasonable, especially by the standards of this wealthy community. And couple that with the extraordinarily high utilization rates most members attain and you have a recipe for great value. It was another high net-worth individual, Warren Buffett, who has frequently reminded us that while price is what you pay, value is what you get.
Informality wins. The ambience at this club is decidedly relaxed and unpretentious. Blue blazers and black dresses have been replaced with blue jeans and shorts. In today’s time-constrained, fast-paced, high-stakes society, don’t underestimate the need to unwind, to hang out and to do that in an environment that is comfortable, accepting and kid-friendly.
The social thread. Maybe not exactly a three-ring circus, but the club is a flurry of activities. Continuing in the circus tradition, kids love to come to this club (and parents follow). There are more than 300 kids on the swim team, more than 500 kids in various camps during the summer, and dozens of tennis teams for all ages. And Thon is looking forward to the completion of the club’s $8 million expansion plans, as group fitness classes are currently meeting in every available space. The social glue is strong reaching across different families and generations. This is “one big social club,” explains Thon, and with a new bar and grill, updated aquatics facilities with three pools and expanded fitness center, he expects that social thread to continue for decades.
Here’s a telling anecdote: Thon bumped into a member headed for the club’s heavily-utilized fitness center and knowing that this member had an expansive and well-appointed fitness center (and gym) at his own private residence, Christian asked why the member would opt for the club’s crowded confines, when a more luxurious and private workout space was back at home. “Yours is bigger and better, isn’t it?” he teased. “Yes, Christian,” was his sheepish reply, “but all my friends are here.” And that’s what defines the Menlo Circus Club.