A recent study found that in the last 30 years, the amount of money that Americans have spent on alcohol hasn’t really changed. One out of every $100 dollars American consumers spend goes toward alcohol. But, where Americans spend their money on booze has changed: in 1982, American spent 76% of their liquor money at the grocery store, and 24% at bars and restaurants, while in 2012, they spent over 40% of their alcohol allowance in bars and restaurants
Are Americans really frequenting bars more often?
Nope, says NPR. The price of booze in retail stores has gone down and in bars has gone up.
Over time, you expect productivity gains and falling prices in manufactured goods. But a bartender today can’t make drinks any faster than a bartender 30 years ago. In other words, there haven’t been major productivity gains at bars. When a sector lags in productivity growth, it tends to have increasing prices.
Which of my entrepreneurial readers is going to revolutionize bartending?
Photo by geishaboy500.