If its hurting business, doesn't that imply that they were making a lot of money off serving those under 21?
Uhm yeah, cover charges and what-not at a minimum and maybe reduced 21 and over patronage.
It's ridiculous that the Field House is paying $15,000 a month for rent. Sounds like some one else was milking a big cow.
Yes, they do. As a rule of thumb, expect to pay cover at nearly any bar after 9:00 or 10:00 at night, Thursday through Saturday. That includes the summer. It's ridiculous.I would be VERY surprised if under 21 cover charges and what-not constitute 50% of the bars business. As in the second article linked in the OP states a drop of 50%. If it does, they have an AWFUL business model, and they deserve to go out of business.
Also, I've never been to the Iowa City bar scene during the summer, do they charge cover in the middle of July when all the students are out of town?
They claim that they went from $80,000 to $12,000 from just under 21's being lost. To me, it sounds like they were doing a lot more business to minors than just cover charges.
In what may be the best part of the 21+ law, I've talked to a few people who told me their kids and their friends no longer wanted to go to Uiowa. Knowing I went to ISU, they made the typical jokes about the state. When I told them it's probably because of the 21+ law change, their interest perked up. Of the two I have talked to since, one told me his daughter couldn't come up with a reason why she no longer wanted to go, and one admitted it was because of the change. Both are taking a more active roll in their kid's college selection process now, and telling the other parents they know about it.
But are they paying this to themselves? A lot of business owners own their building/property and rent it to their business...nice wy to pay yourself versus a larger salary. Would be interesting to find out.