HOUSTON, November 18, 2025 — RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced a strategic partnership with adult club entrepreneur Jonathan Joseph, majority owner of the Yellow Rose Cabaret and the Red Rose Adult Nightclub, two of Austin’s most well-known venues.
The partnership is taking the form through a Joseph entity acquiring a 49% interest in Rick’s Cabaret Austin, TX for $1.8 million in cash. Joseph is known for changing the gentleman’s club industry in Austin into more of a nightclub scene, attracting men, women and couples.
The transaction, which closed Friday, November 14, 2025, adds Joseph to three other leaders of the adult club industry as part of the RCI family: Major RCI shareholders Duncan Burch of Dallas, Troy Lowrie of Denver, and RCI Chairman, President and CEO Eric Langan.
Langan commented: “Jonathan is a rising star in the industry. We’ve known each other for more than 20 years and have been wanting to work together again. We’re pleased to have found a way to do that in line with RCI’s Back to Basics 5-Year Capital Allocation Plan.”
Joseph commented: “We’re thrilled at solidifying a relationship with the RCI team. This partnership will strengthen Rick’s in the Austin market with more local management and marketing expertise, working in coordination with the Yellow and Red Rose, so that all three clubs reach all key demographic segments.”