Drinks stopped pouring at one of San Francisco’s oldest gay bars — again.
Ginger’s, a 47-year-old fixture and longtime drag venue, shut its doors on October 31.
The closure comes as inflation-squeezed customers are less eager to spend in a crowded market of bars and breweries. Multiple alcohol providers have closed or declared bankruptcy amid a slide in sales.
Ginger’s had been losing money for the past year. As of last Friday, it’s officially on ‘indefinite hiatus,’ according to owner Brian Sheehy.
The modern version of Ginger’s opened in 2017 as a revival of a beloved 1970s bar of the same name.
It closed during the pandemic and reopened last past June, hoping for a rebound.
However, the bar, located in San Francisco’s financial district, has struggled to attract a steady flow of customers.
It used to rely on sales of happy hour drinks before white-collar workers hopped on the metro and buses home. As fewer Bay Area residents worked from the city’s downtown, the business model collapsed.
Bars and breweries across the US have quickly shuttered as Americans save cash to fend off inflation (stock image)
Ginger’s tried to attract downtown workers with drag events and happy hour specials – but a recent manager vacancy halted sales momentum and forced the owner to close up shop
‘The traffic to Ginger’s has not been consistently strong,’ he told SF Gate.
‘Without enough customer support, our staff don’t earn enough tips, and Ginger’s operates at a loss.’
Sheehy added that Ginger’s was slowly inching toward profitability when its general manager left the position. The owner couldn’t find a worthy replacement, speeding the decision to shut down the bar.
‘If a miracle happens, and somebody comes out of the woodwork, we will reopen again,’ he said of the lukewarm manager’s search.
Now, the bar will turn into a private events space.
But Ginger’s is not alone: across the US, breweries and bars have shuttered as Americans turn toward cheaper, lighter alcohol.
For example, Michelob Ultra — the low-carb, low-price lager everyone used to mock — is now America’s best-selling option.
The trend started amid a massive shift in the US consumer economy, where young Americans and working-class families are increasingly cutting back on unnecessary or expensive purchases.
Ginger’s, a gay bar in San Francisco’s financial district, has shuttered after months of losses
But that has crunched the bottom line for alcohol providers across the US.
Brüeprint Brewing Company in Apex, North Carolina, filed for Chapter 7 bankruptcy in April.
Luca Mariano Distillery, a Kentucky whiskey-maker, filed for bankruptcy in July.
Even its larger competitors, Wild Turkey and Jack Daniel’s, reported major sales slips.
In February, the San Antonio, Texas-based Alamo Beer Company filed for Chapter 11 bankruptcy after reporting a loss in profits.
Meier’s Winery out of Ohio also filed for bankruptcy after 134 years in business.
Each company has cited a slowdown across the industry in its bankruptcy filings.
