A shift in social behavior, with house parties increasingly becoming the trend, leading to a decline in pub scene.
Digital Desk: Over the past year at least 40 Bengaluru pubs went out of business while the remaining businesses face elevated operational costs by 20% combined with a 25% decrease in customer traffic alongside government implemented price surcharges. Pub owners demand both simplified business procedures along with financial stabilization and helpful policies to stay in operation.
The National Restaurant Association of India (NRAI) Bengaluru chapter indicates that the city has around 2000 pubs and breweries. Experts from the industry have revealed that more than six pubs throughout Koramangala shutdown during the previous year and numerous other places are currently at risk. The current situation endangers numerous businesses according to NRAI secretary Ananth Narayana.
The Koramangala pub chain owner noticed a social trend toward private house parties which reduced the number of customers entering pub establishments. “The current government funding cuts alongside other policy measures have intensified difficulties and parallelly created limited financial backing to support businesses,” he explained. According to him the decreased spending by the corporate class stems from their rising job uncertainties and worries about getting laid off thereby leading to lower consumer demand. The pub industry in the city operates at a value between Rs 600 crore and Rs 1,000 crore but faces financial instability because operational costs increase 10% annually and revenue continues declining.
Prajwal Lokesh owner of Chin Lung Resto Bar mentioned both increased labor problems and strong marketplace competition as principal barriers. The market shows significant interest in discounts yet strong market support proves essential for new business success according to him. The licensing procedure has turned into a major obstacle because pubs must secure no less than nine separate licenses to conduct business operations.
Small pubs are facing financial strain because rising prices for raw materials alongside elevated rent rates and taxation obligations. The increase in beer prices together with operational costs threatens the survival of many pubs. Narayana highlighted how increasing costs joined with less customer traffic has forced too many pubs to close their doors.
R.Venkatesh Kumar, the excise commissioner functions stated that increased duties on both beer and Indian Made Liquor originated from revenue needs after minimal duty changes and growing public health consciousness. The price adjustments in the low-end sector do not exceed inflation rates because this segment generates 60-65% of revenue according to his observation.
The president of NRAI’s Bengaluru chapter Chethan Hegde stated the pub industry is still recovering from COVID-19 lockdown damage while facing challenging operational cost increments. He explained that unreliable customer traffic makes it almost impossible to maintain operations.
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