On Sunday we got the chance to mix with our fellow citizens, in the economic sense, during this longest recession of our young lives. But there was no single story that emerged from the day. Is this the beginning of the end or just business as usual? I saw both sides.
In the morning we headed down to The OC for the annual Pet Expo. It is like a pet convention, with all different types of dogs and cats that you can meet and greet and vendors selling pet related products. Mr. M and I have gone for several years and had gotten used to the things the way they were. Well those days have passed. I remember stumbling home our first year, loaded down with free samples and giveaway goodies. The food samples lasted for a month and we picked up many other treats and biscuits for pennies. The fairgrounds were as crowded as previous years, but fewer people were buying. Gone were the piles of giveaways and the samples were no longer free. The case of canned food I bought for $10 last year was priced at $20 this year. I didn’t buy any. I paid for items that I’ve gotten for free in years past. It was still an enjoyable experience, but not as lucrative as before. Was it the economy? Were vendors worried that desperate people would take advantage of any giveaway? Or were their bottom lines hurting and the money for promotions gone? I’m not certain, but the difference was discernable.
Later we went out for a birthday dinner in old town Pasadena. Mr. M doubted that it would be crowded - it was a Sunday night in the middle of the recession. But the place was packed and tables remained empty only long enough to get cleared and reset. This place was not cheap either! A dinner for two would be $80 or more. Obviously there is still some money to be spent in this economy, judging by how many people were enjoying a Sunday dinner out. There isn’t one story in this recession, some businesses remain strong or benefit from the economic conditions, while others stand on the brink of closing. Have you seen a similar schism - some businesses thriving while others are dying?
Thanks for reading. If you enjoyed this post consider subscribing for updates.
Feed: pfblogs.org
PF Blogroll
Posts
10 comments:
This was a good read. I wish I had time to marinate on these observations and come up with an explanation.
I have asked the same thing here. The malls are empty but the restaurants are full.
Well the issue with a restaurant is that people can go there and spend less. You can share a meal or get an appetizer or skip the last margarita. There was an article on MSN where they quoted a restaurant owner who said he'd know the recession was over once his richest customers ordered $300 bottles of wine again (the oness they're currently buying are "only" $150).
@Weakonomist - yeah I'm not sure how to explain the difference I saw. The pet expo seemed as busy as in past years, but fewer people were carrying bags or buying. Some deals still existed and I'm happy with everything I bought, but I was surprised that vendors were charging more this year knowing that people have less disposable income.
@Debtfree - we don't eat out much so I have trouble comparing, but I have been to restaurants which clearly had fewer customers than before. This seemed an anomaly, the place was really busy on an off night.
@PA - this wasn't a place you could share a meal though, the portions weren't very large, and most entrees were $20-$50, so not cheap either. We were all surprised to see it so busy. The food was good, but not good enough to explain the crowd. Then a few doors down another restaurant is going out of business.
You said, "Obviously there is still some money to be spent in this economy, judging by how many people were enjoying a Sunday dinner out."
I think it might have more accurately gone like this: "Obviously there is still some credit to be used in this economy, judging by how many people were enjoying a Sunday dinner out."
I see the opposite of DebtFree2009's observation. A month ago, I tried to go to the movies and couldn't find parking at the mall for 30 minutes. (I gave up.)
Restaurants are emptier than I've ever seen before, though.
I don't know how to explain the behavior since I started being frugal when the economy was great and everyone else was still spending.
I think its probably because expenses like fairs and expos are one of the first ones that get slashed when companies draw their budgets. Could be that.
God forbid I should be accused of starting a "class warfare" but I've noticed that high-end restaurants aren't really hurting that much. An atty took me to a relatively expensive Japanese restaurant called Kitayama on a Thursday night. Packed. I had a $10 off "gift certificate" from Roy's but I couldn't get reservations until 9 p.m. since they were packed. (I didn't end up going.) I'm seeing that middle of the road to lower end restaurants like Applebees are hurting, though. Sounds like the rich really aren't hurting.
I would also guess that business are getting less samples and kick backs from companies to promote at Expos. Which would probably help explain why vendors had less or are now charging.
Post a Comment