Argentina recession leaves once-bustling Buenos Aires restaurants hustling for customers

[Larry]

Even little luxuries like coffee and a croissant are too expensive for many, as Argentines reel from the effects of lower purchasing power and surging costs for everything from electricity to bus tickets.

Argentina recession leaves once-bustling Buenos Aires restaurants hustling for customers

Even little luxuries like coffee and a croissant are too expensive for many, as Argentines reel from the effects of lower purchasing power and surging costs for everything from electricity to bus tickets.

www.courthousenews.com

 

[Digital Nomad]

I was talking to one restaurant owner in Palermo Soho and he told me that business is down about 30% from the same time last year. I noticed this article says at least 20% so that sounds about right.

He told me it was a double whammy as not only were there far less customers but all his costs have gone up. He said his electricity and gas bills have skyrocketed up. This article mentioned the same problems he told me about. He said he couldn't raise prices because he was already struggling to get customers. He said that many places will probably go out of business unless things turn around soon.

Coffee shops seem like they have high margins but not so sure about restaurants.

 

[Wally]

Many people have cut back on the number of times they eat out. Not sure what the price of things will be when this recession ends but prices will have to go way up to cover the cost of all these increases. Someone will have to pay for it or else they will have to go out of business.

 

[Avocado]

Even little luxuries like coffee and a croissant are too expensive for many, as Argentines reel from the effects of lower purchasing power and surging costs for everything from electricity to bus tickets.

Argentina recession leaves once-bustling Buenos Aires restaurants hustling for customers

Even little luxuries like coffee and a croissant are too expensive for many, as Argentines reel from the effects of lower purchasing power and surging costs for everything from electricity to bus tickets.

www.courthousenews.com

Very true. Many places will go out of business if this recession continues.

 

[Betsy Ross]

Does Don Julio still have a line out the door? I haven't walked by there in a while.

 

[Digital Nomad]

Does Don Julio still have a line out the door? I haven't walked by there in a while.

I live by Don Julio. There are still lines but not as big as before. It used to be a month wait online to book but now you can usually find something a few days out now. So even that place has slowed down compared to before.

If you went on their website before you couldn't find anything even a month out. Now, very easy.

 

[Betsy Ross]

I live by Don Julio. There are still lines but not as big as before. It used to be a month wait online to book but now you can usually find something a few days out now. So even that place has slowed down compared to before.

If you went on their website before you couldn't find anything even a month out. Now, very easy.


View attachment 7466

Wow! That definitely is a sign that things have slowed down. A friend was in town a few months ago and went online to try to book dinner and it was all blocked out. Thanks @Digital Nomad. Just saw that I could get a lunch for as soon as a few days from now.

 

[Bill]

Very true. Many places will go out of business if this recession continues.

Either their profit margin goes down or maybe they do shut their doors. The margins in the restaurant business are not high to begin with. If salaries go up, expenses all drastically go up and you can't mark up your prices that is a recipe for disaster.

 

[sell1980]

I live by Don Julio. There are still lines but not as big as before. It used to be a month wait online to book but now you can usually find something a few days out now. So even that place has slowed down compared to before.

If you went on their website before you couldn't find anything even a month out. Now, very easy.


View attachment 7466

We went on the weekend and there was still a long line if you go on Saturday or Sunday afternoon. But some advice. You can slip the girl at the front some money and she can get you ahead of the list. I went last weekend with an American friend and he didn't want to wait. He gave the girl in front some cash. I think he gave her $30 USD and asked if we could get our group of 4 people in. She got us a table in only 15 minutes when people left. Not sure if this is common but worth mentioning.

 

[TonyTigre]

We went on the weekend and there was still a long line if you go on Saturday or Sunday afternoon. But some advice. You can slip the girl at the front some money and she can get you ahead of the list. I went last weekend with an American friend and he didn't want to wait. He gave the girl in front some cash. I think he gave her $30 USD and asked if we could get our group of 4 people in. She got us a table in only 15 minutes when people left. Not sure if this is common but worth mentioning.

That makes me not want to go there!

 

[Betsy Ross]

That makes me not want to go there!

Well I believe they have many tables that they don't make reservations for and just for walk in but there is always a line there when I go. Never have tried ever paying cash to get in before someone else. I find it uncouth but with this struggling economy I am not surprised to hear it.

 

[earlyretirement]

That makes me not want to go there!

Yes nothing like getting there and waiting only to have people cutting in line by paying $. I've been to Don Julio hundreds of times over the past 20 years and never seen that. It used to not be famous. Before IG and the bloggers and was just a nice steakhouse. No reservations needed. Now I never go unless I already have reservations as that line is too long and not worth waiting in.

It definitely looks slower as the last few times I have eaten there I had to have reservations over a month ahead of time. Some other friends that own restaurants there confirm that things are much slower. A few that have bars have closed down.

 

[Uncle Wong]

That makes me not want to go there!

This kind of thing happens all the time in the USA. I didn't see this at all while I was in Argentina. But not surprised to see someone trying this. $30 probably is the amount the girl makes her entire shift.

 

[Wally]

Very true. Many places will go out of business if this recession continues.

What I am curious about are all these new coffee shops that have opened up all around Palermo and especially Villa Crespo. They are US priced coffee shops and besides tourists that will keep them busy, I wonder how they will all stay in business. There was an explosion of them last year before these increases with utility rates and salaries were lower. I wonder if they will all survive? Probably not.

 

[Vince]

What I am curious about are all these new coffee shops that have opened up all around Palermo and especially Villa Crespo. They are US priced coffee shops and besides tourists that will keep them busy, I wonder how they will all stay in business. There was an explosion of them last year before these increases with utility rates and salaries were lower. I wonder if they will all survive? Probably not.

I wondered the same thing. My sister was in town the end of last year and she asked me the same thing. She asked me how they all stay in business. It was mostly tourists in them she said. In speaking to a friend he told me that many digital nomads use them as a co-working place. Instead of paying a co-working place they would rather just get some overpriced coffee and hang out there and work.

So this could account for why there are so many of them. Apparently, the co-working places are too expensive now and digital nomads would rather go to coffee shops. Not sure if this is true or not.

The numbers might have worked before but with utility prices increasing so much along with other expenses not sure how the margins are. Coffee is a very high margin business.

 

[Uncle Wong]

I wondered the same thing. My sister was in town the end of last year and she asked me the same thing. She asked me how they all stay in business. It was mostly tourists in them she said. In speaking to a friend he told me that many digital nomads use them as a co-working place. Instead of paying a co-working place they would rather just get some overpriced coffee and hang out there and work.

So this could account for why there are so many of them. Apparently, the co-working places are too expensive now and digital nomads would rather go to coffee shops. Not sure if this is true or not.

The numbers might have worked before but with utility prices increasing so much along with other expenses not sure how the margins are. Coffee is a very high margin business.

I can't imagine that all of these coffee shops will make it over the long haul. Unless salaries drastically jump up. Agree about the over priced co-working spaces. I went into one of those as my internet went out in my Airbnb and they wanted some crazy daily rate! I just went into a coffee shop instead. I was shocked coffee was so expensive in BA. About the same price as back in the States. Besides tourists I can't imagine too many locals will pay that every day. Maybe I'm wrong.

 

[Che Vos]

The price of good coffee in Argentina is outrageous!

 

[James Bond]

That makes me not want to go there!

I'm curious @TonyTigre why does it matter to you? I am not sure where you are from but I have seen this done in other cities, especially the States. Me and my mates have done this several times in Miami and Las Vegas. I have never done it in BA but I don't know if I would have a problem if someone did.

 

[MikeRoss]

I was talking to one restaurant owner in Palermo Soho and he told me that business is down about 30% from the same time last year. I noticed this article says at least 20% so that sounds about right.

He told me it was a double whammy as not only were there far less customers but all his costs have gone up. He said his electricity and gas bills have skyrocketed up. This article mentioned the same problems he told me about. He said he couldn't raise prices because he was already struggling to get customers. He said that many places will probably go out of business unless things turn around soon.

Coffee shops seem like they have high margins but not so sure about restaurants.

Just casually walking by some places they still look very busy on the weekends but slower during the week. Some of the coffee shops seem slower than usual. I didn't know expats use coffee shops as their coworking spots. There are a lot of wealthy locals. My group of Porteños that I met up with are all relatively rich. It doesn't sound like anything will slow down their daily coffee or dining out. Seems like a lot of these types all over Palermo.

 

[Scottishgaucho]

What I am curious about are all these new coffee shops that have opened up all around Palermo and especially Villa Crespo. They are US priced coffee shops and besides tourists that will keep them busy, I wonder how they will all stay in business. There was an explosion of them last year before these increases with utility rates and salaries were lower. I wonder if they will all survive? Probably not.

Same out here in the sticks. Despite all the financial doom and gloom I keep hearing about. New cafes, bars, restaurants and all sorts of shops just keep on opening up. There must have a hell of a lot of spare cash knocking about.