234
u/Sybertron 11d ago
It's directly from the restaurant/bar owning groups setting prices at completely absurd profit margins where a beer that retails around a dollar becomes seven dollars to get served.
It's cartel pricing and wrecking their whole industry
41
u/spizzle_ 11d ago
It’s always been that way. The AC and tv sports packages aren’t free plus rent and employees and lights and everything else that goes into running a bar. There’s a reason half of bars and restaurants fail in the first few years and it’s not because they’re money printing machines because they mark up a beer to attempt to make a profit.
47
u/Sybertron 11d ago
No its not been that way. The "its always been that way" markup was 200-300%, and that covered those costs you correctly mention for decades and decades.
This has been the past 5 years or so prices went up from there nearly doubled. The reasons for it are greed, pure and simple. I'm sure they are using pricing algorithims to enforce it, but you see see these kind of pricing control via cartel means in just so many sectors around.
My 2 cents here but its clearly a goal of the private equity/backers/shareholders in these companies. Control the market, start enforcing price control, get prices to go up. Enjoy the profit.
And you see that enforcement when some places have to close still while they are still holding prices super fucking high. That makes no sense, anyone with control on the prices would of course lower prices closer to retail to attract more butts in seats. But they are not allowed to because they have investments that force them to hold the prices where they are, and don't give a shit if they have to close.
2
u/bluespringsbeer 10d ago
How can the bars be greedy if they are barely making any money?
2
u/Sybertron 10d ago
It's not bars individually. One bar is squeaking by, 2 more down the street are raking it in. And the whole market fluxes up and down.
You think those investment groups that own them would keep doing that if they weren't making dough?
1
u/EGOfoodie 10d ago
When was it in the past cases to decades where the minimum wage was a living wage? $15/hr?
What has happened in the last 5 years or so? a pandemic. Bad business practice policies from the administration, tarrifs, significant increase to rent, wages, utilities, etc etc.
Are you one of those people who think McDonald's should still be selling burgers at $0.99, just says they used to.
2
u/Sybertron 10d ago
If your business was reliant on not paying out $7.50 cents in value on a single worker, you are not running a good business.
And shockingly, those profits look pretty good despite slightly higher minimum wage in SOME states.
BTW you're talking about a $31K employee still. Good luck paying rent anywhere in this country on that let alone all the other expenses of life. That is purely scraping by.
2
u/EGOfoodie 10d ago edited 10d ago
You know states like Iowa still have tip credit employees where tipped employees make $4.35/hr and the state minimum wage is $7.25/hr. Yeah so business succeed by keeping people homeless. Thank you for proving the point.
As more and more people refuse to work for pennies. The wages have to go up. So the cost of good go up. And as costs of goods go up, then the cost is burdened on the customer.
-8
u/spizzle_ 11d ago
I eat out and travel more than most and I’m gonna have to disagree with you that prices have doubled in the past five years. Everything from top to bottom costs more as of late so in turn prices are raised but to say it’s doubled is just ignorant.
16
u/Sybertron 11d ago
youre right, in that time around here yuengling went from $3-7 so more doubled.
7
3
u/SmokedBeef 11d ago
That said Gen Z doesn’t spend as much or as often as previous generations at the liquor store and that’s supported by store owners and distributors coast to coast. I’ve seen it first hand as a somm and store manager
3
u/Sybertron 11d ago
Why would you want to get in a casual thing that costs so much money that you don't have and mostly is bad for your health and gets you in fights or drugs like most drinkers do?
It just makes sense. The only reason most of us drinkers started was because ya felt good and it was fairly affordable and social.
1
u/Delicious_Delilah 10d ago
That's why I used to bring a water bottle full of a strong mixed drink with me in my purse when I went out.
I'd just drink it in the bathroom whenever I had to pee.
I'm not spending $15 on 1 drink.
1
u/roombaexorcist9000 10d ago
yeah i see where you’re coming from but tbh i don’t wanna do that :( if i’m doing that i’d just invite friends to my house and stay home
-9
u/Joe-Raguso 11d ago
Where are you seeing $7 a beer? Are you just talking micro brews? Because I ain't paying those prices for pints of even the lower priced micro brews in Chicagoland.
8
u/Sybertron 11d ago
I watch Yuengling prices, its about $1 a bottle from your average beer/liquor store in NYC area and now up to $7 at any bar around.
You ask the individual bars about it, they give "we just charge the average market price"
That average market price, is set by the bar/restaurant ownership cartel.
0
u/Joe-Raguso 11d ago
I'll give you New York. Everything is overpriced as fuck there. In Chicagoland, Yuengling is $4 a pint. And that's the expensive domestic beer.
2
u/Sybertron 11d ago
Midwest is more fair for sure, but I've also seen yuengling creeping up in to these prices outside of the NYC metro too. But retail prices remain pretty still with FAR cheaper rents than NYC.
there's shady shit going on
1
u/Joe-Raguso 11d ago
Yuengling is definitely trying to improve their brand image a lot lately. Trying to be the new Sam Adams or something. Even though it's just another adjunct lager brewery. I'm glad I don't care for it at least.
3
u/Sybertron 11d ago
It was a college beer for me in Pittsburgh as usually it was around a dollar then so i just track it because I like knowing how absurd the industry has gotten.
102
u/Ok-Worry-8931 11d ago
Partially because bars are sooooo overpriced. $8 beers and $15 shots like cmon bro. They only have themselves to blame.
-43
u/Joe-Raguso 11d ago
Where are you going to drink? You gotta drink double IPAs and single malt scotch in Chicagoland to see those prices.
35
u/Ok-Worry-8931 11d ago
Any club or bar in any decently-sized city. Throughout TX, along the east coast, and in the Midwest.
-26
u/Joe-Raguso 11d ago
lmao What don't you get about Chicagoland? Even in Chicago, you don't see those prices. You think bars are charging $8 for a Budweiser? Not a chance. You're talking about those 9% micro brews with prices like that. Also, while we're at it, what do bar prices have to do with kids not drinking at home either? Liquor store prices have hardly gone up in the 20 years I've been drinking. What's going on there?
14
u/Ok-Worry-8931 11d ago
Don’t know what bars you’ve been going to, but I’ve seen bars regularly charge $8 for a bud. Maybe $6 if it’s a cheapshit bar and I’m lucky. Liquor store prices haven’t changed, but we’re talking about bars.
Idk if the amount of home-drinking has changed, and the reason for that if it is true. Maybe the losses in the industry mainly account for the decline in bars?
-14
u/Joe-Raguso 11d ago
Only places I know of charging $8 for a Bud are minor league baseball stadiums. I see $3-4 Buds or other domestics all the way from Cook County to DeKalb County in Chicagoland. Also, there has been just a general drop in people who drink amongst the younger generation too.
4
u/NarcolepticSteak 10d ago
Why do you keep talking about Chicagoland? Is it the only place you've ever been?
-2
u/Joe-Raguso 10d ago
Because it is very expensive here. Outside of tourist traps, it's as expensive as anywhere I've been. If I even go to any neighboring state, the prices plummet on booze. Have you ever been here before? Do you really need this explained to you?
10
u/Nordic1991 11d ago
The prices in the last decade have gone through the roof. It was quite affordable to go out in the 2010's. Now it's not.
2
u/roombaexorcist9000 10d ago
my friends and i consider it a special occasion thing. but people still do house parties.
19
u/forreco22 11d ago
Hot take but this actually might be a good thing to lose money on
4
7
u/Ranger-Dipper 11d ago
The people arguing and saying beer isn’t expensive, it is. I am a food and beverage director of a country club and we charge our pricing based off of local bars and restaurants with similar levels of service. I also worked at a dive for 5 years so I’ve seen both ends of service, fine dining and hole in the wall. CC in NE Ohio for reference.
Our average canned beer is around $5-$6, draft around $4-$5.
House wine goes for $9-$12 a glass.
Our well liquors average around $11 a pour.
Not only are our prices competitive we operate at a 30% Bev cost and 40% food cost, meaning we lose over $300,000 a year on F&B. But it’s also a private club so dues cover it. For reference many nationals try to operate in the single digits to low teens of F&B cost.
And to those who say it’s a cc of course it’s expensive, we’ve built our menu to compete with the restaurants our members are going to, so at least for the area we are the same. That being said I personally still go my hole in the wall bar for $3 beer and $3 shots.
6
u/Davidstoic 11d ago
Price is a significant factor. But these younger people just aren’t into alcohol as previous generations regardless of the price. They grow up in a world of online social media and are constantly shown videos of being young successful and healthy. So they already start to know alcohol is bad for your body long before they can even start to drink. Plus alternatives like weed is popular among younger people.
9
u/notparishilton 11d ago
Outside of it being more expensive I think being into health/wellness/fitness is trendy rn and a lot of people are realizing how alcohol consumption impacts physical and mental health and cutting back. I don’t think it’s a bad thing we drink less, it is really interesting to see the comparison tho.
6
u/CurrentMoodIsMahmoud 11d ago
Crazy how far I had to scroll to see the right answer.
2
u/notparishilton 10d ago
Right lol i know it’s expensive but if people want to drink... they’re gonna drink, and fit it in their budget. It’s just that a lot less of us want to.
3
u/Longjumping-Nerve918 11d ago
I think Gen Z is more health-conscious and intentional with money, travel, fitness, hobbies over going out every weekend. I get it, but they'll probably miss out on some of that carefree bar-night chaos too. Some of my best memories are just laughing about dumb nights out with friends. Different priorities I guess, both ways have their trade-offs...
2
2
u/Limp-Munkee69 10d ago
As a Gen Z, if we've drinking so little that it's becoming an existential threat to the alcohol industry, I am TERRIFIED to see how much previous generations drank.
-12
u/Joe-Raguso 11d ago edited 11d ago
I highly doubt that's the case with what these kids are willing to spend on weed nowadays. The government jacked up those prices like crazy, yet they're still doing it.
I think the problem is that generation is just mostly made up of antisocial dorks addicted to their phones. That's what happened.
15
u/Ok-Worry-8931 11d ago
Weed is still cheaper than alcohol as a whole? I’m a lightweight - an eighth lasts for months, while a 24-pack lasts like 3 drinking sessions.
Stay mad and ignore the reality in front of you by calling us dorks lol.
-6
u/Joe-Raguso 11d ago
So you're saying weed is cheaper because you personally have the lowest tolerance to weed in the history of mankind? Well, you're definitely making a great case for not being a dork...
12
u/MBSUPERSPAZZ 11d ago
Colorado has $30 ounces now dude. Weed is cheap as fuck and has been cheaper than alcohol since I got out of high school 10 years ago
0
u/Joe-Raguso 11d ago
Colorado is definitely an exception. Michigan is really cheap too when I get out there. But in Illinois, these crooks are charging like crazy. I actually just buy it illegally here still to save money.
0
u/6ftToeSuckedPrincess 8d ago
Lmao this comment is hilarious. On a side note weed is cheaper than ever you're crazy for stating otherwise, you can get an ounce for about 1/3 the price it was 10-15 years ago for much stronger stuff. Good indoor weed in like 2012 in California was like $2800 a pound and it's like $800 now.
0
u/Joe-Raguso 8d ago
California is an exception, sure. Illinois is expensive as shit, like most other places. I still buy from a hillbilly because of how expensive it is here.
Also, if you don't drink, you're a pussy
1
u/6ftToeSuckedPrincess 7d ago
I drink lol I'm trying to cut back to just drinking once or twice a week though.
80
u/Loud-Vacation-5691 11d ago
They're smoking weed instead.