A shame what Milei and Caputo are doing to Argentina. Everyone I know has had to cut back on dining out. It shouldn't be a luxury going out for a coffee each day. Now it is impossible.
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Argentines Ditch Dining Out as Milei’s Policies Strengthen Peso
- Thread starter Larry
- Start date
Definitely have felt this. I wonder how all of these places will stay in business. Besides a few places many feel much slower now. Doubt they can all stay in business. Many must be losing money. What I don't get is many even if it's slow I see tons of employees. Strange in Argentina seeing this especially when it is slower. Many of these places can get by with less people.
Cant' believe the increase in beef prices at restaurants. Article says 100% up from a year ago and groceries have gone up 65%.
Cant' believe the increase in beef prices at restaurants. Article says 100% up from a year ago and groceries have gone up 65%.
earlyretirement
Moderator
Yep. I read this article this morning on my Bloomberg.
BA Times also republished the Bloomberg Article below. I have said a while ago that many restaurants and bars will go out of business and it's already happening. The pace of the closings will probably pick up. Look at some places in Palermo and they are already folding or will soon. From the article. I posted last year that restaurants would probably start folding because utility prices (electricity, gas, water) skyrocketed up. They were used to very cheap operating costs of cheap labor and cheap utilities and also cheap rents but all of those things are going up.
Gonzalo de la Vega, owner of craft brewery Club Bonpland in the affluent Palermo Hollywood neighbourhood of Buenos Aires, has reached a breaking point. The brewery’s utility costs have tripled, a result of Milei’s decision to cut subsidies that kept monthly bills cheap.
The 39-year-old restaurateur tried to avoid passing the price hikes entirely onto his menu and took a 25% hit to his profits. But last month, his landlord informed him that his rent would more than double.
De la Vega is now planning to close the brewery. “Customers used to come to eat, everyone ordered plates and drinks, then went out to dance,” he says. “Today they only go out to drink something. Consumer spending tanked.”
Before Milei took office, high inflation and a big gap between Argentina’s many exchange rates meant that pesos were rapidly losing value, fuelling a culture of fast spending and fierce competition for reservations between locals and foreigners.
With the peso no longer in free fall, households are cutting back on discretionary spending, and restaurant owners are feeling the impact. Argentina has lost more than 10,000 restaurant and hotel jobs since Milei took office, according to government data.
“January and February were very bad months. We sold 30 percent less in January and 12 percent less in February than last year,” says Víctor Blanco, a partner at restaurant chain Buenos Aires Grill and Puente in the more affluent neighborhoods of Buenos Aires. “Nobody stayed in Buenos Aires because many went on vacation abroad. In other years, that didn’t happen.”
www.batimes.com.ar
BA Times also republished the Bloomberg Article below. I have said a while ago that many restaurants and bars will go out of business and it's already happening. The pace of the closings will probably pick up. Look at some places in Palermo and they are already folding or will soon. From the article. I posted last year that restaurants would probably start folding because utility prices (electricity, gas, water) skyrocketed up. They were used to very cheap operating costs of cheap labor and cheap utilities and also cheap rents but all of those things are going up.
Gonzalo de la Vega, owner of craft brewery Club Bonpland in the affluent Palermo Hollywood neighbourhood of Buenos Aires, has reached a breaking point. The brewery’s utility costs have tripled, a result of Milei’s decision to cut subsidies that kept monthly bills cheap.
The 39-year-old restaurateur tried to avoid passing the price hikes entirely onto his menu and took a 25% hit to his profits. But last month, his landlord informed him that his rent would more than double.
De la Vega is now planning to close the brewery. “Customers used to come to eat, everyone ordered plates and drinks, then went out to dance,” he says. “Today they only go out to drink something. Consumer spending tanked.”
Before Milei took office, high inflation and a big gap between Argentina’s many exchange rates meant that pesos were rapidly losing value, fuelling a culture of fast spending and fierce competition for reservations between locals and foreigners.
With the peso no longer in free fall, households are cutting back on discretionary spending, and restaurant owners are feeling the impact. Argentina has lost more than 10,000 restaurant and hotel jobs since Milei took office, according to government data.
“January and February were very bad months. We sold 30 percent less in January and 12 percent less in February than last year,” says Víctor Blanco, a partner at restaurant chain Buenos Aires Grill and Puente in the more affluent neighborhoods of Buenos Aires. “Nobody stayed in Buenos Aires because many went on vacation abroad. In other years, that didn’t happen.”
Argentines ditch dining out as Milei’s policies strengthen peso
President’s self-titled “shock therapy” of economic policies are making the country’s currency so expensive it’s doubled dinner tabs at restaurants that were booming not so long ago.
www.batimes.com.ar
Betsy Ross
Well-known member
I didn't eat out every day when I lived in the USA and I had a good job. I also didn't get Starbucks or coffee out every day. People just have to live with the new reality that they can't eat steak every other day and can't go out for coffee every day. People have to live within their means.
I admit, culturally it was nice meeting up with friends so often but I have cut way back. Not just for my budget but mostly my local friends can't afford to dine out too much now.
I admit, culturally it was nice meeting up with friends so often but I have cut way back. Not just for my budget but mostly my local friends can't afford to dine out too much now.
Avocado
Well-known member
But going out for coffee shouldn't be a luxury. Now it is luxury that many cannot afford.
Agree! It not just coffee or food. Even look at the price of beer now. Crazy what they are charging! And prices keep going up.
Blockchain
Well-known member
Even when I came last year prices were already high. I couldn't believe the cost of steak in some places. Not just Don Julio either. Went to several and steaks were not cheap. Makes you wonder what kind of operating margins these restaurants want! I mean in several places the prices were expensive. I went to Club Bonpland in Palermo Hollywood and prices weren't cheap. Music was good but I ordered a beer and it was warm. I mean the one thing you can't screw up is serving beer cold! So not surprised that they are going out of business.Yep. I read this article this morning on my Bloomberg.
BA Times also republished the Bloomberg Article below. I have said a while ago that many restaurants and bars will go out of business and it's already happening. The pace of the closings will probably pick up. Look at some places in Palermo and they are already folding or will soon. From the article. I posted last year that restaurants would probably start folding because utility prices (electricity, gas, water) skyrocketed up. They were used to very cheap operating costs of cheap labor and cheap utilities and also cheap rents but all of those things are going up.
Gonzalo de la Vega, owner of craft brewery Club Bonpland in the affluent Palermo Hollywood neighbourhood of Buenos Aires, has reached a breaking point. The brewery’s utility costs have tripled, a result of Milei’s decision to cut subsidies that kept monthly bills cheap.
The 39-year-old restaurateur tried to avoid passing the price hikes entirely onto his menu and took a 25% hit to his profits. But last month, his landlord informed him that his rent would more than double.
De la Vega is now planning to close the brewery. “Customers used to come to eat, everyone ordered plates and drinks, then went out to dance,” he says. “Today they only go out to drink something. Consumer spending tanked.”
Before Milei took office, high inflation and a big gap between Argentina’s many exchange rates meant that pesos were rapidly losing value, fuelling a culture of fast spending and fierce competition for reservations between locals and foreigners.
With the peso no longer in free fall, households are cutting back on discretionary spending, and restaurant owners are feeling the impact. Argentina has lost more than 10,000 restaurant and hotel jobs since Milei took office, according to government data.
“January and February were very bad months. We sold 30 percent less in January and 12 percent less in February than last year,” says Víctor Blanco, a partner at restaurant chain Buenos Aires Grill and Puente in the more affluent neighborhoods of Buenos Aires. “Nobody stayed in Buenos Aires because many went on vacation abroad. In other years, that didn’t happen.”
Argentines ditch dining out as Milei’s policies strengthen peso
President’s self-titled “shock therapy” of economic policies are making the country’s currency so expensive it’s doubled dinner tabs at restaurants that were booming not so long ago.
Rents have to be cheap in BA vs. USA prices. Salaries are cheap there compared to US so what I can't figure out is how they can't turn a profit? Even utilities are cheap compared to home. Sure they might have tripled but if they were almost nothing and tripled then that still isn't much.
I wonder how bad it will get and how many places will go under? Are restaurants really not making much money serving $4- $5 dollar coffees?
earlyretirement
Moderator
Well honestly going out daily to a cafe for coffee when it's expensive shouldn't make sense if you can't afford it. Heck, I can afford it. I am not hurting but I don't even do that in the USA. I consider that a waste of money here and $5-$6 a day every day adds up. I agree with @Betsy Ross it has to be a new reality not to dine out all the time or go out for beers or coffees daily. Even my affluent friends in BA have cut way back on dining and drinking out. Things like eating steaks every day or every other day aren't going to be realistic moving forward.
Just because something was normal in the past doesn't mean it is normal in the future. With utilities next to nothing restaurants and cafes would blast AC and leave their doors open all day in the summer and pump up heat and keep their doors open in the winter. They have to live within this new reality.
It's a shock for many locals how expensive beef/steak is in restaurants. Also, the costs have gone up at the butcher as well. Many have had to cut back. Lots of places will close like Club Bonpland. In the past when you had lots of tourism places were just automatically being busy based on location. But with reduced tourism, many will suffer.
This happens every cycle when people that it would be great forever. I predicted last year that many places would go under because of the utility price increases. The bar is a terrible business in Argentina. I have friends that owned bars in Buenos Aires and they all eventually closed down. They told me that 25% of profits goes right out the door with misc theft. Whether it's employees stealing cash or employees stealing products/liquor or providing it free to their friends. Brutal business anywhere but especially in Argentina.
I see more and more people getting out of the short term rental business too in BA because of higher utility bills and HOA. So it will be better in the long run for owners that are in it.
Craft beer was probably the most underwhelming part of BA to me. Wasn't that big a deal I just drank a lot of wine instead, but it was surprising. Any North American city has at least a couple of really good breweries. Austin has so many I haven't tried half of them.
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Uncle Wong
Well-known member
Agree with you Craig. Some local told me that was a hip place with good beer at Club Bonpland but I had the same issue. My beer was warm and foamy. I asked the waitress to replace it and she got really moody. I remember thinking they won't last long with this type of customer service. I thought most places the service was slow but a few places the staff was very moody. And it's not like there weren't plenty of employees. Many places I actually thought they overhired. Tons of employees in some places which they can probably cut down on the #.
I also thought the craft beer seen would be more popular but it seems like all they sold anywhere was Quilmes their national brand! And someone told me Quilmes owns a lot of other brands but it seems like they have a monopoly on beer.
@StatusNomadicus I know you are a beer drinker from some of your posts. What are some other good beer brands? What places would you recommend in BA? Any good craft beer spots?
Craft beer scene here is nothing like many US cities where it is very popular. But there are some decent craft brew places.
Strange Brewing in Colegiales
Strange Brewing · Delgado 658, C1426 Cdad. Autónoma de Buenos Aires, Argentinien
★★★★★ · Brauereischänke
Charlone is also decent. Also in Colegiales
Charlone · Cap. Gral. Ramón Freire 745, C1426 Cdad. Autónoma de Buenos Aires, Argentinien
★★★★★ · Brauereischänke
import export
Well-known member
Those are ok. I prefer Antares on Honduras. And they have a location in Caballito too. I think that is the best craft beer in BA.Craft beer scene here is nothing like many US cities where it is very popular. But there are some decent craft brew places.
Strange Brewing in Colegiales
Strange Brewing · Delgado 658, C1426 Cdad. Autónoma de Buenos Aires, Argentinien
★★★★★ · Brauereischänkemaps.app.goo.gl
Charlone is also decent. Also in Colegiales
Charlone · Cap. Gral. Ramón Freire 745, C1426 Cdad. Autónoma de Buenos Aires, Argentinien
★★★★★ · Brauereischänke
Betsy Ross
Well-known member
My friends love craft beer. My brother when he comes always goes to Santa Remedio in San Telmo. He always gets brews and hot dogs there. Raves about it. He also loves Strange Brewing mentioned above and said the best craft beer in BA.
maps.app.goo.gl
Santo Remedio · Chile 700, C1098AAN Cdad. Autónoma de Buenos Aires, Argentinien
★★★★★ · Brauereischänke
Argentina isn't really a beer destination. I think they mostly have bad taste in drinks. They drink Coke with Fernet! Disgusting.
Most of these breweries aren't really serious about beer. Don't have the resources to do beer right. A surprising hit if you love beer is the Beer Cellar in Palermo on Costa Rica and Bonpland. It is my favorite place for beer. The owner, Martin is extremely knowledgable and friendly. Must visit if you love beer.
Beer Cellar · C1414CPP, Costa Rica 5654, C1414CPP Cdad. Autónoma de Buenos Aires, Argentinien
★★★★★ · Bierhandlung
Darksider415
Well-known member
Likewise. I might go out for coffee once a month, because my wife and I like to get an occasional breakfast or brunch at Havanna, but that's about it. I make far better coffee at home with my moka pot or my pourover, for far less. We just bring roasted beans back from artisan roasteries in Brazil when we visit, vacuum seal and freeze them when we get home and we're stocked for months.
I'll disagree. I quite enjoy fernet, both neat and with Coke, but I also drink Terma Patagonica... My cousin who is married to an argentino says I should've been argentino with my taste in pizza and drinks. 🤣
Uncle Wong
Well-known member
Brazil has such great coffee. I was surprised that I didn't think the coffee was that great in Argentina at many places. And very expensive! @Darksider415 are there a ton of taxes on coffee in Buenos Aires? Or are cafes just greedy? I thought with Mercosur and free trade agreements, things like coffee would be cheap.
I tried Fernet and coke and didn't like it either way. My local friends all love that stuff. Maybe because they grew up with it but I didn't like the taste. You sound like you are blending in well!
Good to know these places, will be sure to visit next time. Funny thing is I went to Patagonia's brew pub where they had 5 different ales and IPAs on tap, so I ordered a small glass of each and lined them up on the bar, and they were all the same color and tasted exactly the same.Argentina isn't really a beer destination. I think they mostly have bad taste in drinks. They drink Coke with Fernet! Disgusting.
Most of these breweries aren't really serious about beer. Don't have the resources to do beer right. A surprising hit if you love beer is the Beer Cellar in Palermo on Costa Rica and Bonpland. It is my favorite place for beer. The owner, Martin is extremely knowledgable and friendly. Must visit if you love beer.
Beer Cellar · C1414CPP, Costa Rica 5654, C1414CPP Cdad. Autónoma de Buenos Aires, Argentinien
★★★★★ · Bierhandlung
Uncle Wong
Well-known member
I heard that Pategonia had amazing brew pubs or at least the best in Argentina but a friend went down there and laughed as he had a similar experience. It's great to get some of the names of some in BA as I enjoy trying new beers. Not an expert but fun trying different beers. @CraigM I wouldm't be surprised if they just had the same thing on tap and were hoping people didn't notice. 🤣
Avocado
Well-known member
It is a shame coffee is so expensive. I will disagree that it should be luxury to have coffee out a few times a week. Now to do that costs over $100 dollars a month.
Fernet is a classic here. All the people love it.
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