Sinking Economy: A Restaurant Closes Every Day

[gpop]

I was in a culinary shop buying a new skillet, waiting on the shop clerk to finish with a couple of guys buying several items. I overheard most of the conversation as the store is very small; I surmised that the pair were opening (yet another) pizza/empanada/parrilla. What got me was the complete ignorance and short-sightedness of the clients. Seemed as though he had SOME experience cooking on the line, but clearly had no sense of what he was getting into as a restaurateur.
This punctuates something I have long suspected. When porteños start anything in food-services, most are with pipe dreams because some family member complemented a successful meal, so they figured they could capitalize on it.
A restaurant is a long, stressful, stinky business and requires more resources and experience than most people would believe. This is not exclusive to porteños, but from what I've seen around the city; how businesses are planned (or not), how they begin, how they are run, and how they ultimately fail... I'm not surprised. The luckiest ones are the ones that have killer locations and the traffic to support their small budgets. The rest are foreign sponsored so their backbone is more sturdy (although not impervious to) against economic slow-down.
All restaurants have slow periods. If they cannot survive a 3-6 month slow down; they they should not be in business.

EDIT: Booze always makes money though... even during the dry spells, drinking *probably goes up !

 

[ElQueso]

There has been a big increase in internet delivery services. People who used to eat out may be eating at home - but buying more delivery meals. A family who used to eat out 2-3 times a week but can't afford as much any more can eat at home for about the same price as a year ago or so and order in without having to cook still. That describes us and it costs about half to order in what it does to go out (at least in certain cases and certain changes made to the menu). That may impact some restaurants closing as well as other probably obvious factors that have already been discussed.

But it seems as though I see a lot more closed signs/for rent signs for just about every kind of independent retail store or restaurant in the areas that I regularly frequent. Except in many cases clubs/bars, fruit stands, kioscos and fast food places, which seem to be doing a pretty good business although I obviously don't know what profits are like in general.

I do see many of the for rent places opening with other businesses, like usual, it just seems that the number of signs are somewhat increasing.

I have a couple of contacts among a couple of bars here and know that aside from dodging problems with inspectors and such they are doing very well - lots of beer and Fernet and crappy drunk food, lots of people still willing to spend to get drunk - except their profit is in pesos which keeps losing value, so things are not exactly at a balance but rather a deficit in terms of increased profit vs increased sales (sales were actually at a high last month in one place, the other still high).

Aside from a couple of bars, nothing quantifiable, just having lived in the Microcentro/Recoleta area for some 6 years and knowing what things are like and how they've changed.

 

[scotttswan]

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.

All the campora places around me have closed or are closing and up for rent. good signs in my opinion.

 

[ghost]

All the campora places around me have closed or are closing and up for rent. good signs in my opinion.

What exactly is a "Campora Place"?

 

[notebook.fix]

Maybe Bajo , Matias and 'wild horse' can give us a good solid explanation as to why the economy under Cristina's (MARXIST KICILOF) leadership is WORKING LIKE A CLOCK at the moment..maybe it's just a 'Sensacion'. After all, according to their logic, this government is always there to 'defend' us against the unscrupulous 'Piratas' & the 'Buitres' ....hmmm...if only those capitalist pigs weren't there to throw that spanner at the great 'Modelito'....THINGS WOULD BE PERRRRRFECT.

MUCHAS GRACIAS A LOS 54% ! VIVA LAZARO BAEZ! VIVA BOUDOU! VIVA LA CORRUPCCION! VIVA EL NARCO TRAFICO! VIVA LA INSEGURIDAD! VIVA LA INFLACION! VIVA LA DE-K-DA K-GADA CON DEFAULT.........Y VIVA LA REINA DESCRANEADA!


COMO DIJO LA ENFERMA...."ESTAMOS MEJOR QUE CANADA Y AUSTRALIA"...SIGAN VOTANDO EL PRONISMO NOMAS.

 

[ajoknoblauch]

Maybe Bajo , Matias and 'wild horse' can give us a good solid explanation as to why the economy under Cristina's (MARXIST KICILOF) leadership is WORKING LIKE A CLOCK at the moment..maybe it's just a 'Sensacion'. After all, according to their logic, this government is always there to 'defend' us against the unscrupulous 'Piratas' & the 'Buitres' ....hmmm...if only those capitalist pigs weren't there to throw that spanner at the great 'Modelito'....THINGS WOULD BE PERRRRRFECT.

MUCHAS GRACIAS A LOS 54% ! VIVA LAZARO BAEZ! VIVA BOUDOU! VIVA LA CORRUPCCION! VIVA EL NARCO TRAFICO! VIVA LA INSEGURIDAD! VIVA LA INFLACION! VIVA LA DE-K-DA K-GADA CON DEFAULT.........Y VIVA LA REINA DESCRANEADA!


COMO DIJO LA ENFERMA...."ESTAMOS MEJOR QUE CANADA Y AUSTRALIA"...SIGAN VOTANDO EL PRONISMO NOMAS.

There's plenty to criticize here without having to use the anachronistic slur of "Marxist."

 

[Rich One]

Take out food places are clearly a growing business!!! at $6,50 per 100 grs. is a steal ! you can't beat that, cooking for one person doesn't make sense. A nice portion of food will run $25 pesos (meatballs and mashed).

 

[scotttswan]

Places like this. The ones around my flat have either closed down completely or have for rent signs outside them. Money appears to be drying up.

 

[fifs2]

David an insightful post as always but I am in mourning for the Moncloa. It was an early family favourite. The entire wait staff always greeting us by name even after 1 year abroad. I'm sorry it didn't make it. Thx for sharing the news. Plaza Asturias and El Globo other old favourites in the area. Hope they live to tell the tale.

 

[Matiasba]