Are Harder Times Heading to the Hamptons

For a few years I wrote a weekly column for Dan’s papers titled, “Giving You the Business.” I was able to get to talk to the owners of many restaurants, shops, and other businesses on a regular basis. I still see them and we talk it up. Quietly proprietors of local businesses have confided in me the trend has not been positive for the last five years. The volume is not there like it once was before the bubble burst. So I asked what do they think is the reason?

One East Hampton Italian restaurant owner said, “Montauk, everyone is in Montauk.” I told him politely that I was in Montauk during the last week in July and my wife and I were at the Surf Lodge with all of 20 other folks in the whole place on a beautiful Tuesday night. I informed him the folks out there just were saying the weekend is crazy; the weekdays are almost alarmingly quiet!

Another long time bartender at a EH Village restaurant said the third sitting on a Saturday night is now all but non-existent. He said everyone seems to be older and eat earlier, drink less and leave quickly. The Blue Parrot manager did say they had a best year, that is for this ownership.

Another night I dined at the Driver’s Seat in Southampton on Jobs Lane in August. I had done a wonderful piece on the place in 2006 and went in to see the place where you couldn’t get a seat back before the real estate bubble burst, again the place was quiet, with only the back bar open, with maybe 6 people there until it closed before 11PM. Amazing! Another Southampton shop owner confided that she was not a Kardashian fan but when their shop “DASH” was on Jobs Lane last summer it brought new customers with new money, this year there was no “DASH” and the sales were down, noticeably.

I was told commercial real estate owners are still bullish on raising rents so expect to see a bigger than usual turnover in East Hampton Village, Southampton Village and Sag Harbor next season.

My opinion on all this is complex; I believe the new Hamptons visitors are richer but aging and more frugal with their money. The younger new visitors come out for day trips and have just enough money budgeted for train, cab, and one cocktail. Also adding to the situation are the locals who quite frankly are no longer able to bank off their homes as they did at the height of the refinance faze. They have been forced to live off their incomes and not the increased values of their homes. One Bridgehampton restaurant owner has noticed an increase in Latinos dropping in and spending big dollars for dinners. He said, they pay cash, and never complain or send the food back like other folks. I am not sure how this will affect the future to offset a downward trend is sales. Thank God the weather was spectacular this summer, which had to help everybody especially me and my sailing.