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In Bars & Clubs Blogs
Are bars recession-proof?
Scott Johnson says bars just might be a little more recession-proof than other sectors.  
By Bobby Tanzilo RSS Feed Twitter Feed
Managing Editor

E-mail author | Author bio
More articles by Bobby Tanzilo

What is a blog?  For us it is a short blurb that we write when the mood strikes us.  It can be first person, funny or informative. In short, a blog is whatever we want it to be. Published Jan. 19, 2009 at 11:03 a.m.
Tags: scott johnson, atomic, schwartz, palomino, balzac, hi-hat, comet, fuel, palomino, annona, hi-hat garage

With Atomic shutting down and now the news that after 82 years, Schwartz Bookshops will close in the Milwaukee area, I wondered if the old adage that says bars (and perhaps bar / restaurants) are recession-proof is true.

So, I asked someone who oughta know.

Scott Johnson co-owns Fuel, Hi-Hat (and the Garage) and Balzac, but also Comet -- which has a bar -- and Palomino, which many might think of more as a bar than a restaurant. He is also working to open a new place in the former Annona Bistro on Kinnickinnic Avenue in Bay View.

"I can't speak to bars, as we have a food component so essentially, for better or worse, we are restaurants," says Johnson. "(But) as a general rule, no I don't think we are recession-proof. I can speak for most of the industry when I say that business is way down.

"I do kind of think that bars, though not essentially recession-proof, can be good earners in good times and bad if they are simple and run well. Drinking and socializing are crucial activities in this town!"

While Johnson admits that his places have felt the effects of a tumbling economy, he's not shopping for "For Sale" signs just yet, thankfully. In fact, he says -- perhaps a little surprisingly -- things were scarier during the restaurant boom in Milwaukee a few years ago.

"We will be fine," he says. "Business now isn't even quite as bad as it was in '05, '06 and '07 when there were new several new competitors entering the bar / restaurant market every week! That was tough as we all had to deal with a shrinking piece of the pie. But, with competition comes innovation, which is fundamentally great for the industry and the public."

Like many, Johnson rues the loss of Atomic and Schwartz, but he admits that he understands that his shopping habits and those of the rest of the world affect the local landscape.

"I just always hoped that (Schwartz) could hold on somehow, just like I always hoped that Atomic would, even after I started buying more, but not nearly all, my music and books online," says Johnson. "Seems dumb to expect that, but I did. Obviously, I'm not the only one whose buying patterns have shifted; the whole industry and commercial landscape for books and music is changing.

"In that respect, think that restaurants will always be around. I can't imagine a day when folks won't want to socialize or enjoy a meal prepared by someone else. It seems fundamental! But, I couldn't imagine a world without book and record stores five years ago either."

1 comment about this article.
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Posted by alba on Jan. 20, 2009 at 10:30 a.m. (report)

Bars that are charging too much for drinks wont make it. The Ale House already realized that and recently lowered their prices.

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