Sinking Economy: A Restaurant Closes Every Day

[camberiu]

went to big Jumbo in palermo today. I was possibly the only customer there.

The one near the Mosque?

 

[steveinbsas]

went to big Jumbo in palermo today. I was possibly the only customer there.

That might have been due to the fact that most Argentines spent most of the money they had to spend in August much earlier in the month.

Next week will be different.

 

[Ceviche]

The one near the Mosque?

bullrich y cerviño

 

[Alicia karr]

Had the same experience there Tuesday!

 

[Bajo_cero2]

Exactly,you really need to include the numbers for resturant openings and how that has changed to tell this story properly. Strangely, however, infobae.com still hasn't hired me as an editor.

2010, no crisis but 1200 restaurant closed. Normal.

http://www.cocinerosurbanos.com/2011/05/1200-restaurantes-abrieron-en-buenos.html?m=1

 

[Davidglen77]

The situation for full service restaurants is deteriorating fast....however there are a lot of food businesses opening that are self-service, and pizzerias / empanadas. When I moved to Congreso in 2010 there were 3 tenedor libre restaurants within walking distance to where I live. There are now 11 of them to choose from. Many large traditional restaurants that were around for many years, some for more than 20 years, such as La Moncloa (Sáenz Peña & Av de Mayo) and Victoria (Entre Ríos & Yrigoyen) have closed in the past year. It's too costly to maintain a restaurant and the number of employees you need waiters, cooks, kitchen staff, etc - the formula does not work anymore due to inflation and a major dip in spending. New restaurants are opening, but those that require minimal staff / take out / self service. Food is VERY a high profit item, just think at the buffet style restaurants, salad items such as lettuce, carrots, tomatoes, beans, onions, bread, etc (they pay wholesale prices) don't cost the restaurant more than $10/kg, and you pay a minimum of $60/kg when you purchase that food, yes, they have overhead, food prep, rent, etc, however they are making a 400-500% profit on many of the items. A traditional restaurant you need a chef to put together every single plate of food - and then another person to carry it to the table. Much less profit and lately many were operating in the red, so unfortunately, it's time to close.

 

[Matt84]

Well maybe portenos have grown smart to the scam that is jumbo
disco will go next, chinos just need to have a few more imported items, they already accept CC for purchases above three dollars
RE: David, there was an article today in LaNacion about people eating more at home these days, doesn't surprise me as restaurants adjust to inflation and one ends up with a minimum of 90 pesos between cubiertos and water

 

[Jaredberryman]

I think the question here is if the restaurants have been closing at the same rate. I imagine one closing per day is pretty similar over the past 5 years. However, there is no doubt, based on the statistics from indec, that unemployment has risen rapidly and a recession has begun.

 

[garryl]

I think the question here is if the restaurants have been closing at the same rate. I imagine one closing per day is pretty similar over the past 5 years. However, there is no doubt, based on the statistics from indec, that unemployment has risen rapidly and a recession has begun.

data to support that ? The economy is always a mess. People have saving to hedge against that. the crisis in 2001 caught people off guard because banks closed and took people's saving. I expect things continue to be " bad as usual ", not go over the cliff.

 

[Matt84]

I see established places closing around, it's real.
Sure some others are opening, but I don't think it compensates. Some shops that used to be commercial are now owned by La Campora, that says it all.