I know some will be upset by this, but I see this as an opportunity for a new cabaret space opening up to fill the void. I never liked the Rrazz Room for several reasons, including that the two-drink minimum often adds $40 to the ticket cost, which is most cases is higher than the actual ticket.
SF Business Times: San Francisco's Hotel Nikko to drop nightclub Rrazz Room contract
Update:
Uh oh.
Rrazz company sues Nikko - alleges racism
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