Wall Street Manna

An irreverent look at Wall Street

Sunday, November 23, 2008

Economic reality hit the French

Times have become so difficult that the French have even quit going to cafe's. From the NY Times:

SAULIEU, France — Nathalie Guérin, 35, opened Le Festi’Val bar and cafe here two years ago full of high hopes, after working at this little Burgundy town’s main competition, the Café du Nord. But this summer, business started to droop, and in October, she said, “it’s been in free fall.”

“People fear the future, and now with the banking crisis, they are even more afraid,” she said, her eyes reddening. “They buy a bottle at the supermarket and they drink it at home.”

The plight of Ms. Guérin is being replicated all over France, as traditional cafes and bars suffer and even close, hit by changing attitudes, habits and now a poor economic climate. In 1960, France had 200,000 cafes, said Bernard Quartier, president of the National Federation of Cafes, Brasseries and Discotheques. Now it has fewer than 41,500, with an average of two closing every day.

The number of bankruptcies filed by cafe bars in the first six months of 2008 rose by 56 percent over the same period a year ago, according to a study by Euler Hermes SFAC, a large credit insurance company. No reliable figures are available for the latter part of this year, when an economic slowdown here has been accelerated by the general financial crisis, a collapse in consumer confidence and the quick tightening of credit.

But the impression is that business is bad and getting worse, with people and companies cutting back on discretionary spending and entertainment budgets. And that is only compounding longer-term problems stemming from changes in how people live and growing health concerns.
http://www.nytimes.com/2008/11/23/world/europe/23cafe.html?_r=1&hp

People used to drink to celebrate. Then you used to drink to commisserate. Now they drink to forget. And they do it at home.

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