The beer gold rush

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    We have been living in a quiet area of Palermo Soho, near the border with Villa Crespo and Almagro, for about two years. We were told that the nicer area of Palermo Soho was going to expand and cross over Av. Scalabrini Ortíz, coming to our blocks and it is happening. In the last year, despite the tryout of crisis on the media, many new outlet opened nearby, mainly food places ranging from the ubiquitous cervecerías artesanales / gastropubs, and smaller restaurants, grocery stores, health-focused dieteticas etc.


    We started 2019 with the news that they were going to open a beer place in our building. The neighbors are - for once - united against it. I am not very worried as I think it is going to die soon. After all, there are about 10 beer places in just two blocks. My husband says I think like a European, and so look for a mix of businesses in a given neighborhoods - which is true. He claims that in the Americas it is indeed the opposite: rows of shops offering the same goods is what determines the success of a business. There is galeria del óptico with about 40 stores of eyewear and lenses labs, there are 3 blocks with just musical instruments downtown, and we are going to be the area with just beer places.


    Argentines do not strike me as heavy beer drinkers, and the beer quality here is mostly meh X/ (even in these craft beer places). So what's behind this thing of opening beer places one after another? Are they viable businesses? Are they a way to recycle dirty money? Or is it simply a trend which is going to fade? Or maybe a cheap investment, slightly more expensive than a kiosko but with a higher ROI. :scratchead:

    I wish I had one close to me as the same old cafes have become boring. As long as they don't play loud music they shouldn't be too much of a nuisance.

    The beer quality of the only microbrewery we have in our town is pretty decent I have to say. Good job it's not close to our house or I may be tempted to pop-in too often. :D

    Quote from serafina

    So what's behind this thing of opening beer places one after another? Are they viable businesses? Are they a way to recycle dirty money? Or is it simply a trend which is going to fade? Or maybe a cheap investment, slightly more expensive than a kiosko but with a higher ROI. :scratchead:

    good questions, serafina . Is this more than just the seasonal wave of burger joints, gastropubs, etc?

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    This is quite common and you have to take your hats off to the Argentines - even 50% inflation and a basket case economy doesn't hold them back.

    In La Lucila high street, which isn't big, there are at least eight empanada shops, several pizzerias and about nine cafeterias.

    There was a craft beer place, but it closed last month.

    I share your admiration of the entrepreneurs who continue to risk so much by opening new food and beer shops, in the face of a tough economy. We see the perils, as many of these places close within a few months. But for every one that fails, there seems to be another waiting to take its place. I like this eagerness to follow one’s dream.

    Yes given the economy here I'm amazed at the number of retail businesses that still manage to operate here. Goodness knows how they manage to survive but they do....massive profit margins I suspect.

    In the real world of retail I reckon only about 25% of them would survive unless they changed their ways.

    Concentration of same type of retail shops and stores is common in Argentina. Just look in another branch of the business, in this case Construction items. In Av. del Libertador near Nuñez there is a great concentration of those stores, which began with the once dominating store, Barugel Azulay & Co, They were there from 1950 onwards. Then many stores related with the same type of items were at the side of it. Now this company decided to open more small points, scattered in the rest of the city, and they sold the half block of a very well built building because its lot value. (Probably they will build an hyper apartment building).

    I think that the clue of this is that the prospects clients will go to that point to explore which is the best smart purchase to do, looking for the best relation quality-price.

    It is possible that people that likes to have beer or some snack to stay there and chat between themselves have the same behaviour.