Spain's bars hike prices sharply: the countdown to closure has begun
A small draft beer now costs at least €2.30 and the set lunch menu is close to €14. We look at rising bar prices in Spain and what they mean for the traditional neighbourhood bar.
English · Original discussion in Spanish · Published
Brutal price hikes in bars: the countdown for Paco's bar
A small draft beer at a neighbourhood bar in Spain no longer costs less than 2.30 euros. Coffee is two euros. A slice of Spanish omelette with a soft drink or beer comes to 5.5 euros, and a no-frills set lunch menu starts at 14 euros. If you want something fancier, put 18 euros on the table. And if you ask for another bottle of wine, you'll be charged an arm and a leg. The hospitality sector has raised its prices by between 10% and 25% in recent months, and consumers are starting to do the maths.
The numbers that hurt
The increases are not linear. One user counts hikes of up to 25% overnight at his regular bar. Canned beer – cheaper than bottled – has become a common option at some bars, unthinkable a year ago. In the supermarket, a branded can costs less than a euro; a white-label one, less than fifty cents. The savings from drinking at home instead of at the bar are enormous, and more and more workers are opting for a packed lunch over the daily menu.
Behind the price rises are real costs: electricity, rents, social security contributions and raw materials that keep climbing. Anyone doing the sector's accounting confirms it: "From January to April I've seen staggering increases. They don't raise prices because they feel like it". But some also point to an oversupply of premises: there are too many bars for current demand, and only those that push prices to the limit manage to stay afloat.
Customers tighten their belts
The consumer's response is clear: fewer visits to the bar or a search for cheaper alternatives. The omelette pincho and soft drink that used to be an affordable treat now hurts. "At this rate they'll charge you for the bread if you order another round", one regular jokes. Competition from the 'shop-and-eat-at-your-desk' crowd (buying at Mercadona and eating at the office) has intensified. Meanwhile, terraces fill up in summer, but many people only order a cortado and make it last.
Some argue the rise is inevitable and that the sector will survive thanks to tourism and weekends. "If the premises are paid off, opening Friday, Saturday and Sunday is enough", they say. But the reality is that fixed costs never rest, and the weekday clientele – workers, self-employed people, pensioners – is the first to disappear when prices bite.
Where are we heading?
The trend points to polarisation: low-cost bars competing with the supermarket versus premium establishments that justify themselves through the experience. The traditional neighbourhood bar, the kind that sold beer at 1.50 euros, is dying out. As one comment puts it, "bars are going to be the video rental stores of the 2000s". The countdown has begun, and October won't arrive without many of them closing down.
Related discussions in the forum
A small draft beer at a neighbourhood bar in Spain no longer costs less than 2.30 euros. Coffee is two euros. A slice of Spanish omelette with a soft drink or beer comes to 5.5 euros, and a no-frills set lunch menu starts at 14 euros. If you want something fancier, put 18 euros on the table. And if you ask for another bottle of wine, you'll be charged an arm and a leg. The hospitality sector has raised its prices by between 10% and 25% in recent months, and consumers are starting to do the maths.
The numbers that hurt
The increases are not linear. One user counts hikes of up to 25% overnight at his regular bar. Canned beer – cheaper than bottled – has become a common option at some bars, unthinkable a year ago. In the supermarket, a branded can costs less than a euro; a white-label one, less than fifty cents. The savings from drinking at home instead of at the bar are enormous, and more and more workers are opting for a packed lunch over the daily menu.
Behind the price rises are real costs: electricity, rents, social security contributions and raw materials that keep climbing. Anyone doing the sector's accounting confirms it: "From January to April I've seen staggering increases. They don't raise prices because they feel like it". But some also point to an oversupply of premises: there are too many bars for current demand, and only those that push prices to the limit manage to stay afloat.
Customers tighten their belts
The consumer's response is clear: fewer visits to the bar or a search for cheaper alternatives. The omelette pincho and soft drink that used to be an affordable treat now hurts. "At this rate they'll charge you for the bread if you order another round", one regular jokes. Competition from the 'shop-and-eat-at-your-desk' crowd (buying at Mercadona and eating at the office) has intensified. Meanwhile, terraces fill up in summer, but many people only order a cortado and make it last.
Some argue the rise is inevitable and that the sector will survive thanks to tourism and weekends. "If the premises are paid off, opening Friday, Saturday and Sunday is enough", they say. But the reality is that fixed costs never rest, and the weekday clientele – workers, self-employed people, pensioners – is the first to disappear when prices bite.
Where are we heading?
The trend points to polarisation: low-cost bars competing with the supermarket versus premium establishments that justify themselves through the experience. The traditional neighbourhood bar, the kind that sold beer at 1.50 euros, is dying out. As one comment puts it, "bars are going to be the video rental stores of the 2000s". The countdown has begun, and October won't arrive without many of them closing down.
Related discussions in the forum
- Game Over PSOE · 88 replies
- Lorca...NETFLIX buys the Javis' film at Cannes... the lgtb civil war as seen by the PSOE (Spain's Socialist party) · 139 replies
- Things are getting ugly in Tehran · 80421 replies
- Thread to HATE the new FERRARI LUCE (iPhone on wheels) designed by Jonathan Ive - FERRARI -5% on the stock market with its new decision to..... · 99 replies
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (49 replies).
More summaries
-
Ayuso Faces Resignation Deadline Amid Madrid Wildfires
Nearly 8% of Madrid's forested area burned. Pressure mounts for Ayuso to resign within 72 hours amid reports of insufficient aerial firefighting resources.
-
Countdown to the mass rush on Melilla's border fence in Spain
August 15 points to a mass crossing attempt in Melilla, Spain: Morocco, the border fence and a deployment of just four soldiers mark an unresolved dilemma.
-
Data Leak Countdown: End of Official Narrative in Spain
Impending leak of Spanish government data sparks debate on credibility and the end of the official narrative.
-
Rain floods migrant camp in Ceuta, Spain
A storm leaves the migrant camp in Ceuta, Spain, ankle-deep in water and reopens the debate over regularization and health risks.
-
Feijóo and the cost of not wanting to win: the campaign that keeps Sánchez in power
Feijóo opens fronts on abortion, euthanasia and sick leave and loses key pools of voters. An analysis of why his campaign benefits Sánchez.
-
Pantomima Full nails the Spanish consultant: €50,000 and a backpack over a suit
Pantomima Full's consultant parody is 99% accurate: down jacket under the blazer, a backpack over the suit, and a watch that goes from €1,000 to €2,000.