If you own an establishment you have the right to set up a dress code or conduct code as you see fit. However it should make sense and not be too extreme. A very popular bar on Milwaukee's Water St "Mcgillicuddy's in my opinion has gone too far in the restrictions for it's dress code. Keep in mind it's a "bar" not a fine dining restaurant or upscale art gallery. Check out the dress code below SMDH seems like they might be singling out a certain group of people.
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