If you thought last fall looked bad financially, did you take a look at the unemployment numbers that came out Monday? More than 47,000 job cuts were announced by companies like IBM, Caterpillar and Pfizer, according to the News and Observer. When the unemployment rate is already 7.2 percent, numbers like 47,000 are downright terrifying.
But, if the Great Depression is any indicator, there is one industry that should do just fine in a recession. After years of prohibition in the 1920s, the 23rd amendment was added to the Constitutionmaking alcohol legal again in 1933.
When times are tough, the tap is open. Bars, mini-marts and ABC stores don’t seem to have much to fear.
Jeff Mickel, general manager of the Flying Saucer, said business at the popular beer hall has steadily increased since 2007.
Times are also still good at Sammy’s Tap and Grill, according to owner Sammy Stephens, who said the University helps keep business steady.
College Beverage owner Raj Kumar has seen a slight downturn in business, “no more than 5 percent,” since last year, a number that he says is “not much.”
But all three men noticed a change in the buying habits of their customers over the last few months.
For Stephens and Kumar, cheaper beers are rising in popularity.
“Specials are a big deal,” Kumar said of his beer sales. “Imports cost the same for a six-pack as a twelve-pack of domestics. People will buy the domestics.”
Stephens said his prices are generally lower than other bars, but that some people are selecting even lower-priced drinks.
“The person who comes out on a regular basis, you’ll see them go for a lower priced beer,” he said.
The Flying Saucer, which has beers on it’s menu topping $40, is experiencing a rise in higher-priced beer sales, according to Mickel.
“We’re seeing an increase in more expensive beers. I think that has to do with our UFO club,” he said.
The UFO Club is actually a challenge of sorts. Members attempt to drink 200 of the nearly 300 different beers the bar offers. Since fewer than 200 are under the $5 or $6 range, to complete the challenge, “Beer Knurds,” as they are called, must drink more expensive brews.
Mickel has also noticed that happy hour is getting busier.
“We’ve seen an increase in our after-work crowd,” he said, but wasn’t sure if it is because of the economy.
So far, neither Mickel or Stephens have noticed a rise in drunkenness or mental breakdowns at their bars.
However, with the economy heading farther downhill, they may.
“We’re expecting an uphill battle,” Mickel said of the coming year. “We hope we’ll be able to maintain.”
Stephens’ plan for the future centers on promoting his specials and low prices.
“If anything we’re trying to promote the extraordinary specials that we have,” he said.
Bull market or bear, Mickel isn’t too concerned.
“We have a saying in the company,” Mickel said. “People drink when they’re happy, people drink when they’re sad.”