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13th salary drives spending at bars and restaurants in the favelas

13th salary and the year-end season drive local commerce in the favelas, and entrepreneurs celebrate a rise in sales in the sector
restaurants in the favela are busy with the year-end season and the 13th salary

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The end of the year is traditionally a busy period for bars and restaurants. With the year-end holidays and the payment of the 13th salary, establishments expect to welcome more customers, according to the survey conducted in October by the Brazilian Association of Bars and Restaurants (Abrasel), when 78% of establishments expected an increase in traffic at the end of the year.

The way money is spent varies according to social class, as the theory of the marginal propensity to consume holds. In the case of low-income people, there's a tendency to spend most of the money received. This happens because these populations' basic needs take up a larger share of their income, leaving little room for savings. 

With the boost in purchasing power from the 13th salary, their spending on eating out tends to rise. The holiday season fuels this trend, even though the extra income gets spread across other segments.  

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Val Cabral, of the snack bar Le Gateau, in the Jardim Vitória favela, in Cuiabá (MT), believes that spending in other sectors doesn't hurt her business.  

“People consume more, it's extra money. Many people buy a phone, household items, or appliances, especially here in my community and region. But at my place, which focuses on snacks, even lunchtime sales have gone up a lot, ever since the first installment of the 13th”, she observes.

Although much of the 13th salary is spent on electronics and appliances, bars and restaurants in the favelas also see a rise in revenue. With more money circulating in the communities, these establishments see their traffic grow indirectly.

In Campo Limpo, on the outskirts of São Paulo/SP, this growth in traffic is also seen. Rodrigo Chad, of the restaurant Delícias da Tia Cida, says that more people circulating brings more customers through the establishment.

“Since we're in a commercial area, there are several stores and that draws more consumers here to our region. People do their shopping and look on their phone for somewhere to have lunch or grab a savory snack”.

The entrepreneur adds that customers tend to choose restaurants when they see good reviews and affordable prices. “We've been noticing this sales increase every December. Between Christmas and New Year's it starts going back to normal, but there's still a decent sales balance”, Rodrigo comments.

According to the Data Favela, more than R$200 billion moves through the favelas each year. With more activity at this time of year, every community feels the benefits, because it's the circulation of that money that keeps many establishments going. The money spent inside the favelas builds an entire chain of products and services made by and for the community. In the end, strengthening local commerce benefits several sectors indirectly as well, as is the case with bars and restaurants.

Abrasel Hubs 

To boost entrepreneurship in the favelas, Abrasel is present with six hubs that aim to support the growth journey of out-of-home dining businesses.

Initiatives such as workshops, courses, and consulting are carried out to train and support entrepreneurs, optimizing their results and creating impacts that extend positively beyond the businesses that benefit.

Currently, the organization has hubs in Vergel do Lago (Maceió/AL), Aglomerado da Serra (Belo Horizonte/MG), Bairro da Paz (Salvador/BA), Vila Torres (Curitiba/PR), and Campo Limpo (São Paulo/SP).

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