Lambda Vodka, founded by Charles Hughes and Richard Solomon, may have started as a spirits brand, but quickly grew to something much bigger. Shortly after launching, the Lambda Vodka brand soon expanded into a lounge and nightclub business, giving birth to a full-fledged entertainment brand.
The first location - which opened in 2020 in Harlem - thrived, leading the two to take an ambitious leap forward—opening a second Lambda location three years later in Brooklyn, this time with more of a nightclub vibe.
However, what seemed like a dream expansion quickly turned into a nightmare of financial challenges, unforeseen construction costs, and the harsh realities of the nightlife industry.
But the duo made the tough calls, put in the work needed and leaned on business mentors like Steven Garibell, Vice President of Community Business Development at TD Bank, to get them through this incredibly challenging time.
The couple that came out on the other side is an amazing story of resilience, one that is now looking to expand beyond New York and into Philadelphia with a potential third location!
A bold step toward growth
Encouraged by the success of their first lounge, Charles and Richard sought to establish a larger venue in Brooklyn with a different vibe. They secured an ideal location, originally spanning 2,000 square feet. When their landlord offered an additional 3,000 square feet at an unbeatable price, they seized the opportunity. But this expansion came with unexpected complications.
In Harlem, the duo worked with Steven and TD Bank, who made sure there were no surprises for that location's opening.
The couple went into the Brooklyn location looking to self-fund, so they didn't think about reaching out to TD Bank for financing. But when the extra 3,000 square feet became available, they decided to move fast and use an alternative means of funding.
“We had to go through a complete renovation—outside garden, basement cellar, bathrooms, bars, electrical—you name it, we did it,” Charles recalled. “And I don’t know if you’ve been through any type of white box construction process, but it rarely goes the way you want it to.”
Despite an initial budget of $100,000, costs ballooned to more than $500,000 and the bills began to mount.
“The maximum amount of debt I had before this was maybe $10,000,” Charles admitted. “Being $500,000 in debt—it was a really scary moment.”
Though they didn't go through TD Bank for the funding of the Brooklyn location, Richard and Charles continued to lean on Steven for guidance and he was more than happy to be a comforting shoulder to lean on as a small business owner himself.
“A lot of times, business owners won’t take a step back and look at things the way Charles did,” Steven noted. “He rolled up his sleeves and made the tough decisions to keep the business running.”
A financial crisis unfolds
Upon opening the Brooklyn location, the Lambda brand initially met its revenue expectations. However, the unpredictable nature of the nightlife industry soon took a toll, something the duo didn't have to deal with previously in Harlem.
“You’re dealing with humans—sometimes promoters are not happy, or their parties aren’t doing well,” Charles explained. “We lost two of our four original clients, and our weekly sales dropped by 40 to 50%.”
With $50,000 in outstanding loans each month, Charles faced a defining moment: either close the Brooklyn location or take a deeper dive into business operations and innovation. He chose the road less traveled.
“I had to really analyze everything,” Charles said. “We downsized staffing, made changes in management at both locations, and optimized shifts. Adjusting staffing at the right times reduced overhead significantly.”
Both Charles and Richard took on management roles to reduce costs and actively run their new business, beyond simply owning it.
Strategic pivoting and innovation
Even with these changes, Lambda Vodka still faced a daunting amount of debt. That’s when Charles began thinking outside the box.
“We started bringing in different types of events and tapping into new demographics,” he said. “We partnered with a national party brand and introduced events that would be geared to a wider array of audiences, such as parties aimed towards the lesbian community or karaoke nights welcoming members of the trans community, for example.”
By analyzing their space strategically, Charles discovered another way to maximize revenue: splitting the venue into two separate areas, each with its own entrance and sound system. This allowed Lambda to host two different events on the same night.
“For example, on the first Friday of the month, we’d have one event in the basement and another one in the main club,” Charles explained. “This move drastically increased our sales and helped us pay off our debts.”
The hard work paid off. In just one year, Lambda Vodka successfully paid off five outstanding loans totaling more than $600,000. Today, only $17,000 remains of their initial debt.
Mentorship and resilience
Throughout this journey, Steven and TD felt like a trusted friend and someone the pair could always bounce ideas off of.
“Having Steven to talk to—someone who understands small business ownership—was a huge relief,” Charles said.
From the early days of financing their first location to navigating the struggles of the Brooklyn expansion, TD Bank has played a pivotal role in supporting this aspirational small business.
Steven emphasized that resilience is often the determining factor between businesses that survive and those that don’t.
“Most people would throw in the towel, blame their marketing team, or say there’s not enough money,” he said. “But Charles and Richard refused to give up.”
A strained personal and professional partnership
While Lambda’s business model evolved to meet financial challenges, Charles and Richard faced another struggle—maintaining their personal relationship amid the pressures of entrepreneurship.
“When a business is struggling, it’s easy to start pointing fingers," he said.
Now, as things have turned the corner, the duo is stronger than ever, ready for any challenge they may face in the future.
With two Lambda Lounge locations now stable, Charles and Richard have no plans to slow down. In fact, they’re already eyeing their next expansion.
“Never, ever,” Charles said when asked if they would settle with two locations. “My original business plan was for 10 locations. By the end of this year, I want to start looking at Philadelphia.” The pair said they'll seek to work with TD Bank to help fund the new location.
Unlike their Harlem lounge and Brooklyn nightclub, the Philadelphia location will have a different identity—a small restaurant focusing on party brunches and performances.
“We want every city to experience Lambda in its own unique way,” Charles explained.
Legacy, generational wealth and the future
While long-term succession plans are not yet in place, Charles and Richard recognize the wealth and stability they are building.
“I haven’t thought much about passing this on,” Charles admitted. “We don’t have kids, but maybe one day I’ll pass it on to younger family members. Right now, my focus is on growing the brand.”
Steven affirmed their trajectory. “You’re building an asset,” he told them. “This business will support you for years to come."
Despite their financial struggles, Charles and Richard never stopped giving back. They continued to support local LGBTQ2+ organizations and events, even when times were tough. The most recent example is giving back to those in need in the aftermath of the California wildfires.
“That’s what makes the biggest difference,” Steven pointed out. “A lot of businesses stop their community involvement when things get hard, but Lambda kept showing up.”
As Charles reflected on the hardships of the past couple years, he acknowledged the invaluable lessons learned.
“I wouldn’t wish that hardship on anybody,” he said. “But now, I can breathe a little easier. The bills are being paid, there’s some money in the bank, and I know we’ve built something strong enough to withstand the next challenge.”
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We hope you found this helpful. This article is for informational purposes only and is based on information available as of March 2025 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.