"Unfortunately, Hollywood has socialized much of the market to look for the newest venue and so people are going through bars quickly," he said, adding, "It's getting harder and harder to justify the types of build-outs that I'm passionate about doing."
Yet Judaken, who was recently forced to temporarily close his Hollywood Boulevard restaurant East, is doing just that — he will now focus on revamping his other neighborhood clubs, Opera and Crimson, this fall.
For now, Nazarian and Judaken are playing this as a friendly rivalry, and have tried not to step on each other's toes.
"We've got Tuesdays and Thursdays at MyStudio, Sam is doing Wednesdays and Fridays at Colony. Instead of going head to head and breaking down one another, hopefully we're empowering each other to perform," Judaken said.
However, on weekends, all bets are off — as both venues seek to bring in big numbers on Friday evenings.
The market continues to be brutal to clubs that fall out of favor. SBE's lounge S Bar closed in early 2009, though the company said it was because of noise complaints. Still, Judaken said both respective club empires can survive, and even thrive. He noted that Nazarian's Colony helps bolster Hollywood's reputation as a great place for clubbing.
"Our guests are not just coming into a place that has loud music," Judaken said. "They're coming into a comprehensive environment in the heart of Hollywood."
Nazarian also believes his club will last, and he is throwing considerable resources towards the Colony.
"We're here for the long haul," he said. "This space gives us a big anchor in Hollywood."
Where: 6623 Hollywood Blvd., Hollywood
When: 10 p.m.-2 a.m. Tuesdays, Thursdays, Fridays and Saturdays
Price: No cover
Info: (323) 960-3300; http://www.syndicatehospitality.com
Where: 1743 N. Cahuenga Blvd., Hollywood
When: 10 p.m.-2 a.m. Wednesdays and Fridays
Price: No cover
Info: (323) 525-2450; http://www.sbe.com/thecolony