The bar and restaurant industry in Spain has seen their revenues increase 6.6 per cent in May, over the previous month of April, according to the latest figures released by the National Institute of Statistics.
Nevertheless, in comparison to the previous year, the volume of sales has dropped 9 per cent. The previous month saw a similar drop over year earlier figures, of 8.8 per cent.
Similar figures can be seen in the hotel industry where the number of sales increased 10.4 per cent over April’s sales, but in yearly terms the drop was 14.2 per cent.
Different areas of Spain have also been affected to different degrees. Greg Schellhammer, founder and managing director of the business brokerage, Crystal Consulting which specializes in bars, restaurants, nightclubs and hotels, points out that “while areas such as the Costa Blanca, which are heavily dependant on tourism have seen big drops of up to 40-60%, other areas such as Barcelona which are less dependant on tourism have seen revenues fall between 30-50%”,
The drop in revenues is also very dependant on the management behind a business. As Greg Schellhammer unveils “not every bar and restaurant is being affected by the recession to the same degree. While we have some clients complaining of revenues collapsing to 30-40% over last year, others are happily declaring a 30 per cent increase in revenues”, and the secret behind it is clear: “quality in a bar’s service and quality in a restaurants food clearly aids in beating the recession”. The elements determining the success of such businesses are manifold explains Greg, who has written the e-book Survive the Crisis in Spain, which details to great extent hundreds of tips that business owners can follow to survive.
As the summer approaches, many bar and restaurant owners are betting on August’s high season tourism influx. Time will tell what comes of it.