When pub-rock failed to make the leap out of smaller venues, Chilli Willi split and Riviera became tour manager for Dr. Feelgood for the group's US dates in early 1976.
Encountering independent local record labels, Riviera was inspired on his return to the UK to found Stiff (music business parlance for a flop) with Dave Robinson, then manager of Graham Parker & the Rumour in mid-1976.
In November 1976, Riviera arranged for Stiff to follow that with the single release of the Blank Generation EP which contained the punk anthem of the same name by Richard Hell & The Voidoids.
Costello and Lowe scored successes with, respectively, such albums as This Year's Model and Jesus of Cool (released as Pure Pop For Now People in the US), before joining Riviera at his and Lauder's next label launch, F-Beat Records, in 1980.
Riviera's management of British pop/rock group Squeeze resulted in Elvis Costello producing the 1981 album East Side Story, which featured the hit single "Tempted".