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Restaurant Industry News
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Wednesday January 7th, 2009 |
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Election Results Draw Pockets of Optimism for Bars and Restaurants
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By a margin of two to one in a survey taken just before the 2008 election, bartenders within the nation's restaurants, nightclubs, hotels and bars were more optimistic that the election of Barack Obama would be good for their business. Overall, 31 percent of bartenders thought Obama's election would be good for business versus only 14 percent for John McCain. |
While bartenders are clearly expecting better times, a broader consumer survey taken after the election showed more cautious optimism. Two in five consumers thought that the country's overall economic situation would improve, as a result of the election. Assuming this occurs, roughly half the respondents said they would begin eating and drinking away from home more often.
This comes on the heals of a recent Technomic forecast of beverage alcohol sales in 2009 which indicated that consumer spending will remain flat as tough economic times continue to depress restaurant traffic and consumer drinking occasions. 'Our forecast for 2009 shows that bars and restaurants should not expect a rapid turnaround in their bar business,' stated Technomic VP David Henkes, who directs the firm's On-Premise Practice. 'However, the election seems to have revived optimism among bartenders, and for the sake of the industry I hope they're right.'
Technomic's forecast calls for consumer spending on away-from-home alcohol to increase by slightly more than 2 percent next year. However, price increases in the channel are expected to be nearly 4 percent, indicating that dollar growth is driven entirely by operators raising prices to the consumer. 'Real growth in consumption isn't expected next year,' noted Henkes, who said that the restaurant and bar industry was in a prolonged slump that may not improve until mid-2009.
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