Some restaurants see drop in bookings for New Year's Eve
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New Year's Eve is usually a lucrative night for restaurants, a time when many expect to be fully booked all night.
This year, as in most things involving consumer spending, expectations aren't what they used to be.
Rather than making up for a lackluster December, for some Pittsburgh restaurants, New Year's Eve is just more of the same bad news.
"2008 will be a year that we remember for a long, long time as just a difficult one from the drink tax starting in January to the economy driving the fuel prices up, which drove food prices up, and then in the fourth quarter the bottom really falling out," said Jeff Cohen, president of the Western Chapter of the Pennsylvania Restaurant Association.
Last year, as of Dec. 30, The Carlton had about 600 New Year's Eve reservations on the books. This year, they have 400. Other restaurants, including the Hyeholde in Moon Township, report that their numbers are off as well.
The Pennsylvania Restaurant Association is hearing similar reports from other parts of the state, reports The Associated Press. Association President Patrick Conway said people's worries about disposable income, job security and up-and-down energy costs create a tough environment for all businesses, and restaurants operate on a tight margin to begin with.
Evidence that more people are staying home this year is mostly anecdotal. Not all restaurants have noticed New Year's Eve declines. Nine on Nine in Downtown Pittsburgh has not experienced an appreciable difference in reservations this year.
Neither has Sonoma Grille. "We're right on Penn Avenue, which is where all the action is," noted sommelier and owner Uri Marcovitz.
But there are some signs that people are staying home more, both on New Year's Eve and in general.
At Papermart, a party supply store with seven locations in the Pittsburgh area, managers often ask shoppers what their plans are for the New Year. "A lot of people seem to be saying, 'We're just staying home with our families' this year," reported owner Michael Paul. Managers have also noticed a lot of large purchases by churches and community groups holding New Year's Eve events.
Like all retail stores, Papermart has noticed declines this year, but Mr. Paul expects New Year's Eve sales to be about the same as in 2007.
According to Nick Hays, a media spokesman for the Pennsylvania Liquor Control Board, "for the current fiscal year, July to the middle of November, sales to licensees [restaurants and bars] rose 0.4 versus the same period a year ago. By comparison, sales to retail customers rose 6.6 percent from the same period a year ago."
These numbers certainly suggest that Pittsburghers are choosing to drink more wine and liquor at home. Since the numbers reflect statewide sales, they suggest that the economy, rather than just the Allegheny County drink tax, is to blame.
Correction/Clarification: (Published Jan. 3, 2009) Jeff Cohen is current president of the Western chapter of the Pennsylvania Restaurant Association, not Kevin Joyce as was reported in this story as originally published Dec. 31, 2008 about New Year's Eve restaurant reservations. Mr. Joyce is chair of the government affairs committee.
First Published December 31, 2008 12:00 am
