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Monday, February 9, 2009

Are liquor sales really recession proof?

On Premise Liquor sales are down. © Susqueats.com - Covering the Harrisburg - York - Lancaster Restaurant SceneIt is commonly known around those hip economist circles that alcohol sales are recession proof. The general theory goes something like this: People make less money, people drink more to ease the depression. People are unemployed, they have more time to drink.


The current recession, though, seems to be bucking the trend, and there are a number of additional subplots that are developing within the industry.



Here in Pennsylvania the Pennsylvania Department of Revenue claims that tax revenue from the State's malt beverage tax was down 2.1% for the last 6 months of 2008 over the same period the previous year. According to the Pennsylvania Liquor Control Board sales of wine and spirits were up 4.7% in the 2007-8 fiscal year over the previous year. The major gains, though, were in sales to individuals.



This brings us to subplot one. There has been a shift to more consumption at home rather than at restaurants and bars. In an effort to curb spending more consumers are mixing their own cocktails and uncorking their own wine bottles. The impact of this trend is felt beyond simply the missed bar sales. When people are not in the bars and restaurants drinking, the ancillary food sales are also being missed. According to Nielson, patrons of fine dining, casual dining, nightclubs, bars and resorts/casinos all report a decrease in the amount they go out over a year ago.



Subplot two contends that when people are going out, more of them are looking for deals and heading out to happy hours for both food and beverage deals. Happy hours were designed to get people into bars during less patronized hours, but more people are now using them as their primary time out.



Finally, when out at the bars and restaurants more people are choosing the less expensive options. The Yuenglings of the world are getting more business, while the more expensive Heinekens and Becks are seeing their sales slump. And it doesn't stop at beer. Rail liquors are getting the nod over their higher priced name brand brethren. Instead of a Cointreau Margarita the order just becomes a Margarita.



The bottom line is that bars and restaurants need business to stay in business. If you want your local watering hole to be around when we spin out of this economic downturn, they need to see you now. So get out and have a drink, and while you're there rest assured that you are a good American helping to do your part.





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photography © Tom Wenger Photography, LLC posted by Tom Wenger at 6:08 PM

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Saturday, January 31, 2009

Chicken Wing Shortage for Super Bowl XLIII?

As has been reported by NBC and others, there is risk of a chicken wing shortage for this year's Super Bowl. The Super Bowl and wings have been synonymous for years, and according to the news story, chicken wing popularity is at an all time high. Couple that with the fact that Pilgrim's Pride (supplier of nearly 1/4 of all chicken wings) has recently filed for bankruptcy and you start to see why the situation may be so dire. But fear not fair wing eaters, your crack reporter is on the case. This morning I called several of the Harrisburg area's grocery stores and was told at each of them that they still had wings available. Only one of them said that they were out of fresh wings and only had frozen bags. So go and get your wings. They might cost a little more, but they will surely be worth it.  They mention that celery may also be a problem, but who needs any stinkin' celery?

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photography © Tom Wenger Photography, LLC posted by Tom Wenger at 11:17 AM

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