For many bars, Christmas could be the last call

Now, bars that remain open rely on the critical holiday season to generate enough revenue to keep their doors open. But the cold weather, plus a mixture of restrictions, make this effort almost impossible for many of them.

Usually at this time of year, Joe Robinson would distribute a drink called “Fa la la la la la la” in a lighted sweatshirt at his island-themed bar in Detroit, The Skip.

“It’s literally crazy,” he said. “People wait outside in the cold cold of Detroit for more than an hour to get into this bar.”

This year, however, the same bar is barely overturned, serving cocktails bottled with a cane, garnish and umbrella that fans can order online.

The bar industry is a fraction of the size of the restaurant industry, but has suffered a higher percentage of closures, according to Yelp business review site and research firm Datassential.

Many non-food bars have been completely restricted to sit on customers; some closed or kept a leak from cocktail income.

“Bars have less leverage than restaurants,” said Mark Brandau, an analyst at Datassential.

The bar industry, which generated sales of $ 19.9 billion in 2019, according to the American Night Association trade group, is almost a month away from the most critical season and is not doing well. Bars are usually filled seven days a week with happy holidays and gatherings at work, generating twice as much as three times more than regular income, according to the United States Bartenders’ Guild, a nonprofit bartender.

Now, as major cities like New York, Los Angeles and Chicago return to a form of blockade, future partygoers find it easier and more affordable to drink at home.

In the US, online alcohol sales have risen, according to IWSR, a data firm that analyzes the alcohol market. U.S. e-commerce alcohol sales are expected to reach $ 5.6 billion in 2020, according to the IWSR, up from about $ 3 billion last year, with 44% of e-commerce e-commerce buyers saying they started buying alcohol online in 2020.

“This is the worst crisis to hit the industry since the ban,” said Aaron Gregory Smith, executive director of the United States Bartenders Guild.

Some bars that remain open in darker areas use strategically placed Christmas trees for social distancing, 6-foot distance from sidewalks, and capacity restrictions.

Meanwhile, in less restrictive states, some bars are allowed to operate at 100% capacity indoors, however many still experience revenue shocks from social distancing requirements so that customers stay seated and avoid crowding at the bar. .

Florida, for example, has left most restrictions to bar owners. Jarrett Sabatini, who owns Intermezzo Coffee and Cocktails in St. Petersburg, said he expects to arrive this year with the holiday momentum. The geographical location, in terms of weather and local restrictions, has never played such an important role in the economic fate of each bar, the bar owners said.

In New York, Greg Boehm owns two popular Christmas-themed pop-up bar 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 have been an issue this year for his operators; some closed permanently, others temporarily.

“This year has been a waiting game,” he said, “with locations that determine if they can open, how they can open, if there can be propane heaters or there are no propane heaters. Some are big, some are small, some are on the roof, some are in the basement. “

For large cities, the devastation in the bar industry is affecting local government budgets already squeezed by the impact of Covid-19. The average cost to purchase a liquor license in the United States is $ 4,500, according to the American Nightlife Association, money that goes directly to local tapes. As bars close their doors, fewer dollars are expected to come from liquor licenses.

Max Overstrom-Coleman, 41, opened Wolf Tree, a 24-seat cocktail bar in White River Junction, Vt., In November 2019. A Manhattan native who grew up splitting time between New York and Vermont , moved permanently to Vermont a decade ago to pursue a doctorate. But he never returned to school, and instead spent years working at local distilleries and traveling internationally to learn about craft cocktails.

Last year, it finally rented a small space, installed new cables and plumbing, and opened the 700-square-foot bar. “The only thing that could have been a worse idea was a kiss stand,” he said.

Two nearby theaters remain empty, decimating the pre- and post-show crowd, he said. “There are 300 people a night who are simply no longer in the city.”

He described his financial situation as “terrible”. It lost 50% of sales when the pandemic began and another 50% after the most recent November 13 closure. .

Many independent bar and restaurant owners are forced to pledge their own personal and active assets to obtain bank loans, said Edward Webb, a partner at BPM Partners, a consulting firm.

Kathleen Anderson, 47, and 20 other women used to fill local bars in Watertown, Massachusetts, for a vacation each year. They usually spent $ 500 at the first bar, she said, and then “it becomes unclear.”

“The whole thing was just to wear awful Christmas clothes and hats and things that blink,” she said. “I was a gang of screaming mothers.”

This year, she said, the crew is talking about a Zoom party and maybe something is coming home.

Write to Julie Wernau to [email protected]