Bars, pubs going strong in down economy
By: John Upton
March 9, 2009
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| Employment at ‘drinking places’ has seen more job growth than any other sector in San Francisco and San Mateo counties. (Cindy Chew/The Examiner) |
SAN FRANCISCO — In these economically sorrowful times, sorrow-drowning is serving as an economic salve.
Bars, pubs and other purveyors of intoxicating elixirs saw more job growth in the past year than any other business sector — even as most other businesses in San Francisco and San Mateo counties lost jobs.
New California Employment Development Department annual data reveals that the number of jobs in alcohol “drinking places” grew from 3,000 to 3,400 in the two counties from January 2008 to January 2009. That’s a bigger job growth than any of the other 94 business sectors tracked.
Most of those jobs were added in the first nine months of 2008, before the economy tanked, according to Terrance Alan, a bar and strip-club owner who sits on The City’s Entertainment Commission.
But even after the meltdown, people have continued to party.
“People are still going out and people are still drinking, but there are changes to their behavior,” Alan said.
“The 80 percent that still go out spend about half of what they used to,” he said. “The challenge is to keep the late-night entertainment experience high-quality when the revenue that you’re used to has been cut.”
Bars and clubs are slashing their covers and offering better drink specials, according to Alan.
“You’ve got the same demands on your security and door staff, your facility undergoes the same wear and tear — but you have less
revenue,” Alan said.
Although few bars are currently hiring, most are maintaining their staff and replacing hospitality workers after they quit, he said.
Meanwhile, sectors hit hardest by job losses last year were in the troubled lending industry, which triggered the economic malaise through its overlending practices.
The nondepository credit intermediation industry, which includes issuers of product financing and credit cards, lost one-fifth of its jobs last year, with employment declining from 3,600 jobs in January 2008 to 2,800 in January 2009.
The construction industry was also hit hard, shedding 13 percent of its employees, or 5,700 jobs.
Growth and decline of jobs in San Francisco and San Mateo counties
Entire economy, 20,700 jobs lost, 2.1 percent decline*
Brightest industries
- Drinking places (alcoholic beverages), 400 new jobs,13.3 percent growth
- Computer systems design and related services, 2,500 new jobs, 8.3 percent growth
- Ambulatory health care services, 800 new jobs, 3.1 percent growth
- Social assistance, 500 new jobs, 2.7 percent growth
- Telecommunications, 200 new jobs, 2.6 percent growth
Darkest industries
- Nondepository credit intermediation, 800 jobs lost, 22.2 percent decline
- Activities related to credit intermediation, 300 jobs lost, 15.0 percent decline
- General contracting and heavy construction, 2,900 jobs lost, 14.4 percent decline
- Employment services, 2,200 jobs lost, 13.8 percent decline
- Construction, 5,700 jobs lost, 12.8 percent decline
*Figures from January 2008 to January 2009
Source: California Employment Development Department
jupton@sfexaminer.com
