BIV reporters examined British Columbia's frugality reality – and how local businesses are navigating skills shortages, inflation, chronic COVID complications and supply chain dysfunction.
This is one of eight articles that capture acute corporate concerns. Read on to explore different business owners' survival plans and strategies.
Penthouse Nightclub
The family-owned nightclub has been operating on Seymour Street since the 1940s, drawing in patrons with its exotic dancers. The Filippone family also owns the property that the storied club sits on, which proprietor Danny Filippone said is one of the main reasons why it was able to weather the pandemic during multiple closures.
Marketplace cost challenges
Supply chain disruptions made it difficult to stock bar shelves with a variety of items any given week, meaning the Penthouse could not offer specials with any certainty.
“Man, oh, man – I never before had to wait on Corona or wait on a particular gin,” Filippone said, adding that even lemons and limes used for mixed drinks were hard to come by.
Meanwhile, inflation has driven up beer and hard liquor prices. According to Statistics Canada, the cost of alcoholic beverages, tobacco products and recreational cannabis was up three per cent in June compared with the same time last year.
And despite the province making permanent a new policy allowing bars and restaurants to buy alcohol at wholesale rather than retail prices, Filippone said reaping the benefits was short-lived. Just as the new wholesale pricing regime became the new normal, the cost of products and labour also began going up.
The nightclub is also competing for the attention of patrons ready to flock downtown and spend cash after two years of spending much of their time at home.
Marketplace frugality solutions
One of the biggest shakeups aimed at saving money has been the days of operation at the Penthouse.
“Not enough people were going downtown on Monday and Tuesday,” Filippone said, adding that the Penthouse is now closed on those days.
“Mondays are always a slow day – and Tuesdays – but a lot of bars and restaurants downtown depend on those days.”
Instead, the Penthouse is now open Sundays for the first time, where a live DJ drops tracks on stage with the dancers.
“Bringing in a DJ and putting a DJ on the stage is something that you know you don’t normally see in an exotic bar,” Filippone said. “I’ve done it for a couple of months and it’s been successful. There’s more people downtown on Sundays for sure.”
The club has also been able to save on advertising costs due to the traction its iconic marquee gets on social media with cheeky messages like, “BETTER SECURITY THAN THE US CAPITOL.”
And like other similar establishments, the Penthouse is also “ever so slightly” raising prices on drinks to keep pace with inflation, according to Filippone.
Read more:
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- Builder battling fuel costs, facing wage pressures
- Grappling with global lumber market volatility
- Onsite up against cost hikes as testing business booms
- Frugality for freelancers
- Launchpad leaning on outsourcing to cut costs
