Economic Times Have the Entertainment

¶ … economic times have the entertainment industry reeling. Georgians are not going out as much as they used to, resulting in hard times for restaurants, bars and nightclubs. How bad is it? In a recent survey, 80% of people surveyed had changed their entertainment spending habits as a result of the economic downturn.

To learn more about the ways in which the slowdown has affected the way that Georgians spend their entertainment dollars, we took to the streets of Atlanta to talk to passersby and get their views on the subject. Not surprisingly, most people had made some sacrifices to their entertainment budget. Most survey respondents had either chosen to go out less often, or to spend less when they do go out.

"I used to go out 5-6 nights a week, but times are tough," noted Kyle Romero, a 24-year-old grad student from Atlanta. "I go out about three nights a week now." Another grad student, Jonathan Reimhart, 22, from Athens also noted a shift in his spending patterns. "I usually buy one beer for the night…I used to down 3-4 per night."

This reduced spending has also affected those within the industry. We spoke to a couple of waiters, both of whom had noted that the reduced spending had impacted on their ability to go out on their off nights. Stefan Hirsch, 23, a Buckhead waiter, remarked that he had been forced to "cut down spending a lot." Some in the industry have made adjustments, but even those have not helped. "I've picked up a couple more shifts (but) I find myself eating out less," observed Steven Krantz, 29, another waiter from the Buckhead entertainment district.

Not all respondents changed their habits, though. For some, like Buckhead lawyer Kasey Sampler, 43, continued employment has meant no change in spending habits. Some are making sacrifices in certain areas of entertainment in order to maintain spending in others. "I try to dine in more now. I'd rather save my money for clubs and drinks," says Emily Stemmer, a 24-year-old grad student from Athens.

For those who do still go out, they tend to spend less. Costs for a night out among those surveyed ranged between $10-$30 per night. Others take advantage of drink specials, coupons and even senior's discounts to help stretch their entertainment budget further. Several respondents indicated that they were willing to utilize Facebook or other social networking sites in order find out about good deals they could take advantage of. Clearly, restaurants and bars have their work cut out for them if they wish to capture their share of the scarce entertainment dollars in the market right now. When the main criteria for where to go becomes "whatever is nearby and cheap," that is bad news for those in the industry.

Making it even more difficult for restaurant and bar owners, people are traveling less as well for the entertainment. 40% of respondents indicated that they mainly stick close to home now, or combine entertainment such as dining at a restaurant close to a movie theater.

Even teenagers, normally prolific entertainment spenders, are feeling the pinch. Parents are reducing allowances, which in turn has caused teens to reevaluate their financial priorities. "My parents are definitely a lot stricter on how much cash they give me," lamented John Demet, 17, "I should probably look into getting a job soon if I ever want to have a girlfriend."

That may be easier said than done. The unemployment rate in Atlanta hit 10.1% in December, up from 7.6% in December 2008. In the entertainment industry, this has lead to a vicious cycle. Fewer consumers have jobs, and those that do are more fearful for their economic future than before. In an attempt to save more money, consumers are cutting out all types of discretionary spending. The entertainment budget is often one of the first things to go. This impacts people in that industry, causing even more reduction in entertainment spending. "Times are very tough right now," notes Yolanda Press, 62.