Bars recession proof??

[seung1]

Hi,

I wanted to know what your thoughts are on bars and clubs beeing
recession proof?

I noticed the economy is tanking in many states and I'd like to know
from you bar or club owners what your opinion is about the effect
of the economy on bars and clubs.

I look forward to your input~!!!!

[HollywoodNights]

The entertainment industry as whole has held up pretty well against the recession thus far.. Most Bars and Pubs stay busy with the sagging economy as people still need an escape from time to time and forget about their problems for awhile or at least until the buzz wears off.. The only thing that I have noticed in my part of the country is that alot of the MEGACLUBS have now opted to host 18 and up nights to keep those numbers going. There are a ton of 18 and up people here in LA and they will pay $25 a person to get into a nightclub that normally they would not even be able to get into in the first place. The best industries that seem to strive during hard times are : ALCOHOL BUSINESS (nightclubs, bars, pubs), SEX INDUSTRY (gentleman's clubs, porn, etc) GAMING INDUSTRY ( casinos, sports betting, bingo, etc). That's my 2 cents worth. Alcohol, Sex, Gambling what a combination !

[seung1]

Thanks for your input hollywoodnight~

I noticed the LA market has taken a big hit by the housing downturn,
but I guess partying is partying..

[Michael Black]

There has been much discussion on this. Please search "recession", "economy", etc, and you will get several threads including:

http://www.nightclub-business.com/fo...ight=recession

historically 3 industry's have been "recession-proof" in the USA

Vice (alcohol, tobacco, gambling, sex etc)
Personal Hygeine (toothpaste, Toilet tissue)
Entertainment (movies, music, clubs, themed parks etc)

[grpubboss]

Originally Posted by teenclub

historically 3 industry's have been "recession-proof" in the USA

Vice (alcohol, tobacco, gambling, sex etc)
Personal Hygeine (toothpaste, Toilet tissue)
Entertainment (movies, music, clubs, themed parks etc)

Maurice l just checked out your marketing kit,l would be interested to buy,is that the price for forum members or can you do better??

[ministry]

i think that if you have less $ then you don't go out as much. and if it costs you 4 bucks+ a gallon to get there you might not go every week.

[Oxrock]

I think the neighborhood bars/taverns benefit. Drink prices are less expensive and driving/parking is cost effective (i.e. drive a couple blocks vice going to the "entertainment" district of the town.

I've actually seen a slight up-tick this summer. People are saving on gas, drinks, and not paying a cover charge.

[nrkofover]

We're seeing growth this summer as well and we've implemented a cover charge for the first time in two and half years. I think all businesses have to deal with slower times, it's the nature of business even though it's possible bars/clubs see the ups and downs much more regularly than other businesses, you can have a great event for 6 Fridays in a row and then have it disappear for seemingly no reason.

I would say that no matter what the business is, you have to adjust and change to meet the needs of your desired market. I think we're seeing growth because we're working hard to be something different than the other 25 clubs in town (we don't even try to compete with pubs/bars, it's a different market). It's working for now. It might not for long, you never can tell. We're maleable, we're willing to change, we're willing to work hard to make sure the business is profitable.

[realityrox.com]

Our business is rocking..no downturn in numbers on attendance or average spend...but, obviously, our job is getting people in the door - so it is sort of a win win...

Jen
RealityRox
http://www.realityrox.com - booking site
http://www.realityrox.tv - series site

[SHOTSKI'S]

Well, from the famous words of my Grandpappy:

"Two things thrived during the great depression: Drinking & Gambling"

Lets hope he was right! However if memory serves me right, he slurred this statement after a bottle of Jack and a 12-pack of Lone Star.... Hmmmm

Just a thought after reading some posts/reply's about the high gas prices:
Use that as a drink promotion - ____________ (insert drink there) for less then a gallon of gas - Then maybe a 'Blast to the Past' drink special:
____________ for the price of a gallon of gas in 1990... 1980... skip Carters years.... OK, maybe not.

Just my 2 gallons worth of meaningless thoughts.

[J_Stanford2002]

Visited Vegas recently and the drop off in crowds is DRAMATIC! Clubs, restaurants, bars, the strip, the airport, the hotel pool, everywhere you looked there were far fewer people than usual. Cabbies confirmed that attendance is WAY down, while all the Vegas vacation specials being advertised further confirm that drinking and gambling may be more recession-resistant, but by no means are they recession-proof. If you don't have money, you have no choice but to cut those things out. Going to Vegas for the De La Hoya-Pacquaio fight coming up and hotel rooms during that weekend have not gone up much - a fight of that caliber usually skyrockets the price of everything, but not right now.

[bigbeat]

Originally Posted by HollywoodNights

The entertainment industry as whole has held up pretty well against the recession thus far.. Most Bars and Pubs stay busy with the sagging economy as people still need an escape from time to time and forget about their problems for awhile or at least until the buzz wears off.. The only thing that I have noticed in my part of the country is that alot of the MEGACLUBS have now opted to host 18 and up nights to keep those numbers going. There are a ton of 18 and up people here in LA and they will pay $25 a person to get into a nightclub that normally they would not even be able to get into in the first place. The best industries that seem to strive during hard times are : ALCOHOL BUSINESS (nightclubs, bars, pubs), SEX INDUSTRY (gentleman's clubs, porn, etc) GAMING INDUSTRY ( casinos, sports betting, bingo, etc). That's my 2 cents worth. Alcohol, Sex, Gambling what a combination !

I can vouch for that. I spin in L.A. & Hollywood every other month and the venues that I spin are packed. The promoter works OVERTIME to get people in the door and they do EVERYTHING possible to keep each week exciting & fun. The DJs I work with in this area think outside the box and are not afraid to push more variety in their music selections & try new things which has had a very positive effect on what people expect from DJs & entertainment.

I was down there two weekends ago and unlike most of the other venues I go to for guest spots. The music is more exciting and also more open to ALL styles & genres. With most venues across the country still playing almost all hip hop, the clubs in L.A. & Hollywood are playing a lot of 80's, rock & electro mashes. There is a big surge in house music again and people who are starving for it.

The truth of the matter is that there are enough people going out but unless a venue goes above and beyond "business as usual" and DJs take more of a risk introducing more variety into their mixes, nothing will change.

[bigbeat]

Originally Posted by J_Stanford2002

Visited Vegas recently and the drop off in crowds is DRAMATIC! Clubs, restaurants, bars, the strip, the airport, the hotel pool, everywhere you looked there were far fewer people than usual. Cabbies confirmed that attendance is WAY down, while all the Vegas vacation specials being advertised further confirm that drinking and gambling may be more recession-resistant, but by no means are they recession-proof. If you don't have money, you have no choice but to cut those things out. Going to Vegas for the De La Hoya-Pacquaio fight coming up and hotel rooms during that weekend have not gone up much - a fight of that caliber usually skyrockets the price of everything, but not right now.

This is a different situation than the rest of the nation. Vegas is a destination city. Most locals don't go out on "The strip" and enjoy their smaller local bars outside of the main parts of town.

The economy WILL effect Vegas and other destination areas as it is more than just "going out". There are flights, hotels, dining, etc.

Additionally, with an over-saturation of DJs and less revenues, it is hard to find a decent paying gig which limits the choices to newer, less experienced DJs which means the days of "Vegas" styled DJs leaving and going out on the road.

Vegas will always be "Vegas" but will be effected by economic slow downs.

[realityrox.com]

I haven't noticed a down turn in attendance at venues we are providing talent to, but I have heard from a few bar owners that the patrons that were drinking premiums are opting for more wells. I do know that they show increase in premiums on our event nights (according to them) and I attribute that to the "show off" factor - they want it to seem they are rolling in cash to impress.....

I have seen more inquiries of recent as venues are looking to make sure their clubs are packed - so they make that investment to make sure people are coming in the door....

[intensity]

The term "recession proof" is so over-used and misunderstood. In any business you need to stay ahead of the ebb and flow. Being succesful means changing with the times, planning ahead and making the right calls at the right time. Any business that does that is recession proof and bars/nightclubs are no different.

The next couple years will be trying for many of us, good luck

[Emerson]

Based on the data from our client lists and our existing locations, venues (specifically bars & restaurants) are seeing the same if not greater attendance but what is seeing a dramatic decrease is the average spend per person.

Many restaurants are offering greater options on the "cheaper" end for bottled wine, the price-fixe menu and sampler platters or other options to try an edge up the per head avg.

We have noticed as an overall in the restaurant environment that our potential customers are phoning to ask the prices or range of prices for items on the menu.

I would assume that in Los Angeles, the Beverly Hills fine dining restaurants will start to see a dip in customers as tourists are not as likely to spend a high amount and the recurring customer base will not be such regular customers. Within the tourist districts the general outlook for Winter is expected to fall heavily short of last year so restaurants servicing this industry will also see a decrease.

For restaurants this is the time to ensure excellent service, reasonable prices and attention to detail, local traffic in your restaurants catchment area will be the key to consistent revenues. One might also want to consider alternative promotional offers in the off peak days such as a 50% off food Monday.

The nightclubs are seeing mixed results dependant on location or crowd serviced, the higher end locations that are usually heavy in bottle service are suffering but the mid-market locations are seeing little change in revenues as the customers generally have a relatively secure middle income job and do not own a large investment portfolio.

In an economy such as this, the movie industry is the sole and outright winner!!!

I would be interested to hear reports from other consultants or operators in the CST timezone specifically regarding economic or socio-economic changes in their restaurants. If anyone needs West or East Coast data analysis we are tracking all of our own locations as well as existing & previous clients data very heavily in an effort to identify the trendlines.
(my email is emerson@onsiteconsult.com)

To the various operators out there or new operators seeking funding in this economic climate, we have some good articles on our website that may provide opinion or assistance in your endevours.