Bars will take advantage of low inflation to recover margins at the Carnival

The fall in the prices of food and drinks, who recorded 1.87% indentation in 2017, will help the bars and restaurants to your act together its banks at the Carnival. With the expectation that the food outside the home move R $3.6 billion on data in all Brazil, the trend is that industry revenues grow again after three straight retractions. According to estimates of the National Commerce Confederation for goods, services and tourism (CNC), the Carnival will respond by an injection of $6.2 billion in brazilian economy R, being the largest share (58%) will be allocated to establishments that sell food and drink. To take advantage of this moment, the bar manager Rio de Janeiro, Sérgio Sea Andrada, says that in January the network of three institutions made an average 7% readjustment in prices, just over four percentage points above inflation last year, but that this was due to the fact the bar holding the increases from 2015. "We were able to readjust the price just because inflation was controlled and consumers felt so much," he explains. According to a survey of CNC, based on the national consumer price index (IPCA-15) in the past 12 months until January inflation was 4.4% in Carnival-related items, especially the price of red and white meat that fell on average 8.2 %, compared to last year, in addition to the pork, which retreated 3.7 percent. Buying with lower prices, the account manager that the estimate for this year is that the movement in the bar to expand to 35% since new blocks of the street were announced in regions close to the accommodation. "We want an increase of over 30% in revenue in February, and how food inflation is still low, I believe that our margins will be higher this year. Last year we had almost no net profit ", vents the entrepreneur. In addition to the move weaker in 2017, the company invested nearly R $600,000 in private security and antitheft tools, value that is still being written off this year. In Salvador, traditional Street Carnival polo the expectation of City Hall is a high of up to 20% in earnings. In Sao Paulo, that should get the biggest injection of capital (27%), until the chains prepare solutions that fit in my pocket to ensure business. The AccorHotels, for example, will offer breakfast options for partygoers, with prices starting at R $18. In addition, some network ventures will be available to the public a room shared by R $49. The idea is to capture the audience you'd come home from private transport. Fear of yellow fever, even if the time is best for bars and restaurants in terms of price, a peculiar reason can scare away some of the revelers of Minas Gerais: yellow fever. With some of the most traditional cities for the Party considered risk air, the owner of Bar Hill, in Belo Horizonte, Alfredo Sad, worried that the move leave something to be desired. "It's too early to say for sure, but we have heard a lot that the outbreak of yellow fever can take part of the visitors of Mines," he said. The estimate of the Municipal company of tourism (Touristic) is 3.6 million tourists in transit by 500 blocks in the city, and to stimulate business beyond the bars, this year was created a campaign of discounts to local restaurants, which also want to take advantage of the date. Other segments beyond the food outside the home, other sectors will discharge with the Carnival. Second study of the CNC, the second branch with greater participation will be the road transport (R $1.03 billion) and the accommodation services in hotels and guesthouses (R $705.6 million). The Chief of the Economic Division of the CNC, Fábio Bentes, the effect of lower inflation will not be so in all sectors, and some may even lose revenue. "Despite the lower inflation, spending on leisure took to react due to the tight budget yet because of the slow recovery of employment and income," he says. With regard to job vacancies, CNC estimates 19300 temporary contracts, 8.9 percent more than 2017.