The bar industry is in crisis.
Marked early as posing a risk to the spread of Covid-19, some pubs have managed to survive either because they were allowed some indoor seating or because they Got outdoor seating.
Now, the bars that stay open depend on the critical holiday season for enough revenue to keep the doors open. But the cold weather, a plus A mixture of restrictions, Makes the effort nearly impossible for many of them.
Usually, around this time of year, Joe Robinson would hand out a drink called “Fa la la la la la la la” in a lightweight sweatshirt at his island-styled bar in Detroit, The Skip.
“It’s literally crazy,” he said. “People have been waiting outside in the frozen cold of Detroit for more than an hour to get to this bar.”
This year, though, the same bar is barely ducking out, serving up bottled cocktails with a chopping stick, decorating and umbrella that fans can order online.
The bar industry is a fraction of the size of the restaurant industry but has endured a greater percentage of closures, according to the business review website
And Datassential Research Corporation.
Many bars not serving food completely banned from customer seats; Some shut down or keep little revenue from ready-to-drink cocktails.
“Bars have less leverage to pull them from restaurants,” said Mark Brando, analyst at DataSential.
The bar industry, which generated $ 19.9 billion in sales in 2019, according to the trade group American Nightlife Association, has entered nearly one month into its most significant season and is not going well. Pubs typically fill seven days a week with happy hours for the holidays and workplace gatherings, generating two to three times their regular income, according to the United States Bartenders Syndicate, a nonprofit that represents bartenders.
Now as major cities like New York, Los Angeles and Chicago Back to some form of insurance, Would-be revelers would find it easier and less expensive to drink at home.
In the US, online alcohol sales are up, according to IWSR, a data company that analyzes the alcohol market. Alcohol sales in US e-commerce are projected to reach $ 5.6 billion in 2020, according to the IWSR, up from around $ 3 billion last year, with 44% of alcohol e-shoppers saying they started buying alcohol online for the first time in a year. 2020.
“This is the worst crisis to hit the industry since the ban,” said Aaron Gregory Smith, executive director of the US Bar Association.
Some bars that remain open in more enclosed areas use strategically placed Christmas trees for social distancing, 6-foot sidewalks and capacity restrictions.
Meanwhile, in less restrictive situations, some bars are allowed to operate at 100% capacity indoors, yet many still face profits from social distancing requirements that keep patrons sitting and avoiding pub congestion.
Florida, for example, has left most restrictions in place to prohibit owners’ freedom of action. Jarrett Sabatini, who owns Intermezzo Coffee and Cocktails in Saint Petersburg, said he expects it to break this year as the holiday increases. Bar owners said the unprecedented geographical location, in terms of weather and local restrictions, played such an important role in the economic fate of every bar.
In New York City, Greg Boehm owns two famous Christmas themed franchises – Miracle and Sippin ‘Santa – which are usually hosted by more than 100 independent bars across the country each year. He said budgets and planning were a problem this year for his operators; Some are closed forever, others temporarily.
He said, “This year has been a waiting game, with the positioning of if they can open them, how they can be opened, and whether there can be propane heaters or no propane heaters. Some are big, some are small, some are on a roof, some are in Basement “.
For major cities, the devastation in the bar industry is hurting local government budgets that have already shrunk due to the impact of Covid-19. The average cost to get a liquor license in the United States is $ 4,500, according to the American Nightlife Association, and that’s money that goes straight into local coffers. With the bars closed, fewer dollars of liquor licenses can be expected to flow.
Max Overstrom Coleman, 41, Wolf Tree, has opened a handcrafted 24-seat cocktail bar in White River Junction, Vt. , November 2019. The Manhattan native, who grew up dividing his time between New York and Vermont, moved permanently to Vermont a decade ago to pursue a Ph.D. But he never returned to school, and instead spent years working at local distilleries and traveling internationally to learn about artisanal cocktails.
Last year, he finally rented a small space, installed new wiring and plumbing and unlocked the 700-square-foot tape. “The only thing that could have been a worse idea was the kissing booth,” he said.
He said two nearby theaters were still empty, wiping out the pre- and post-show crowds. “300 people a night aren’t in town anymore.”
He described his financial situation as “terrible”. He lost 50% of sales when the pandemic started and another 50% of that after the last shutdown on November 13 not only is his business at stake but, like many small and independent operators, so is his personal accounts and assets.
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Edward Webb, a partner at BPM Partners, a consulting firm, said many independent bar and restaurant owners are required to pledge their personal fortunes and assets to take out bank loans.
Kathleen Anderson, 47, and about 20 other women used to populate local bars in Watertown, Massachusetts, for vacation every year. She said they usually spend $ 500 at the first bar, after which “it becomes a mystery.”
“The whole thing was just putting on the silly silly Christmas clothes and hats and the things flashing,” she said. “We were a group of mothers yelling.”
This year, she said, the crew is talking about a Zoom party and maybe some wine at home.
Write to Julie Wernau at [email protected]
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