While you may not have sympathy, taverns in our area are
closing.... FAST. I wondered why. Here's what I have been told by an
industry insider.
1. Economics. There is a lot of competition for the Beer Buck. Racing to the bottom in price is the wrong thing for these businesses to try to compete. As a result they go broke.
2. Poker machines. If a person walks into a bar with thirty bucks in his pocket, it used to be he would buy drinks all around and drink himself as well as buy a burger. Now twenty of his thirty goes into the machines. It's like clientele who walk in broke. His take on the machines is pitiful compared to his margin on the beer.
1. Economics. There is a lot of competition for the Beer Buck. Racing to the bottom in price is the wrong thing for these businesses to try to compete. As a result they go broke.
2. Poker machines. If a person walks into a bar with thirty bucks in his pocket, it used to be he would buy drinks all around and drink himself as well as buy a burger. Now twenty of his thirty goes into the machines. It's like clientele who walk in broke. His take on the machines is pitiful compared to his margin on the beer.
3. Drinking is changing. Beer stays strong, but spirits are growing.
While margins are still good, they are harder to control. The price of
a pour will kill you if you don't control it. Barkeeps will try to get
better tips by pouring your whiskey.
AND that is what my friend in the industry tells me.. I may not be a customer, but I am an observer of economics. The traditional corner bar may be threatened by bad business practices.
AND that is what my friend in the industry tells me.. I may not be a customer, but I am an observer of economics. The traditional corner bar may be threatened by bad business practices.
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