There once was a time when walking past tashas at the V&A Waterfront would mean navigating the long queues stemming from its entrance as people waited for a seat in the busy restuarant.

Well, things have changed.

According to Moneyweb, upper-middle class households are doing worse than previously thought. Although financial stress has had a particularly dire affect on lower income and broad middle-class segments, there are a few stark indications that show wealthier consumers are having to tighten their belts, too.

The most affected? Certain restaurants:

Buried in Famous Brands’s interim results to August 31, is the news that “trading conditions proved extremely difficult for the niche brands” in its “Signature” portfolio.

These include darling tashas, steakhouse Turn ’n Tender, Greek restaurant chain Mythos, new seafood chain Catch, Salsa Mexican Grill and (mostly KZN-based) Italian ‘Osteria’, Lupa.

But upper-middle class eateries aren’t the only entities feeling some economic-related pressure.

Woolworths, whose products have long featured in the pantry and walk-in closets of the wealthy, saw an annual overall decline of 0.9%:

Its Food business, which was growing sales by double-digits as recently as three years ago, reported an 8.6% increase in sales for the year to June 25, with 4.6% same-store sales growth.

Strip out inflation of 6.6% for clothing and general merchandise and 8.4% for food, and same-store sales declined by 7.5% and 3.8%, respectively.

And then there’s the education sector:

Private education group ADvTECH, in August said the “difficult economic climate and unsettled socio-political environment had a more significant effect on enrolment numbers than had been anticipated”.

The group said it has “seen an increase in withdrawals and exclusions as a result of financial pressures” in its schools division and that a “consistent rise in the number of families emigrating [has] had a particularly negative effect on enrolled numbers as we lose students in grades where it is difficult to replace”.

In three of its school groups, including Crawford, Centurus (Pecanwood College, Southdowns College and Tyger Valley College), as well as its Junior Colleges pre-schools, over 40% of leavers were due to emigration. It lost a higher than expected 1 210 students between December 2016 and July 2017 which, after enrolment, meant a net gain of 578.

Then there’s the lack of people going to malls, less money being spent on golf and cycling gear and noticeably more accommodation and package holiday discounts on offer than normal:

In some cases, accommodation packages for the country’s top hotels and resorts (many owned and operated by the listed leisure players) are quietly being sold for the whole of next year at 50% of the normal room rate.

As South Africa’s economy declines, those who are concerned about the future of their personal finances might find it helpful to get some advice from a financial services provider.

Partnering with the likes of the Consequence Private Wealth, a local firm based in Newlands, will add value to your money by helping you to not only protect your wealth, but build it as well.

Sounds about right, doesn’t it? Start now, and learn what to do with your money and investments so at the end of the day, you can live the holiday.

In the meantime, at least there’s no queue at tashas, right? Oh dear.

[source:moneyweb]