Some are serving coffee instead of liquor, some just food. But with little hope of relief in the near future, 834 of the 2,900 establishments affected by the Supreme Court ban on serving liquor within 500 metres of highways have chosen to shift elsewhere.
According to Excise Department officials, 76 establishments in Bengaluru have shifted, with the highest number of licence shift requests coming from north Bengaluru. “As many as 31 establishments in north Bengaluru have shifted, 28 in south Bengaluru, eight in west, and nine in east,” said Rajendra Prasad, Additional Commissioner of Excise (Indian-Made Liquor).
About a month and a half after the ban kicked in, optimism has faded for the nearly 3,000 liquor-vending outlets in the State, with the Centre not entertaining Karnataka’s proposal to denotify the national highways passing through Bengaluru. The Ministry of Road Transport and Highways recently said it was not in a position to consider the State government’s proposal as the apex court has neither reviewed nor modified its verdict.
Officials also added that the Excise Department has put in place measures to enable a smooth transition for establishments to shift. “We relaxed some rules for three months from July 1. For instance, we have reduced the shifting fee for this period (25% of the applicable licence fee, instead of 50%) and made it possible for them to shift from anywhere to anywhere now. For those who have more than one outlet, we have enabled them to shift from a closed outlet to an open one, provided both licences are in his or her name,” Mr. Prasad said.
Wait and watch
But not everyone is willing to give up hope just yet. The big names, especially in prime areas such as Brigade Road, say they are not ready to give up a prime space until there is a conclusion to the matter. “People have spent huge amounts of money —sometimes a crore rupees — on the decor, which is as much a part of the place’s character as food or drinks. Imagine redoing the whole thing. And leaving a place like Brigade Road is not an easy decision to make. Most of us are adopting the wait-and-watch policy for now,” said the owner of a popular pub in central Bengaluru.
Pecos, for example, is in process of shifting its Indiranagar outlet to another part of 100 Feet Road. “The shift is coming at a huge cost and it is a big endeavour. We decided to take the call and it is a very unfortunate situation,” said Collin R. Timms, chairman and managing director, Pecos.
Excise Department officials too said it was the smaller wine shops, which had not invested too much on interiors, that have shifted already. “But many of them shift within the same area. They say that by doing so, they will not lose their regular customers,” an official said.
More relaxations?
The State Excise Department is looking at introducing another relaxation to make things easier for affected liquors vendors. Officials say there is a plan to enable the transfer of stocks from one licence holder to another. At present, a transfer is possible only for the same person with multiple licences.
As ‘other income’ declines, many go on leave
Those bar or pub owners who have chosen to stay put in their location have seen not just a drastic reduction in the number of customers, but also in their staff strength. And this is not only because there are fewer customers. The fall in staff numbers is directly proportional to a decrease in their “other” income that came in the form of tips and service charge. As a result, many have chosen to go on leave much before their usual time (mostly during the festivals).
“Many of our staff are from the north and east parts of India, and they go home during festivals such as Durga Puja. But with the number of customers reducing, they are not getting that additional income that was enough for them to survive in the city,” said the owner of a pub.
The service charge and tips put together could add up to as much as their salary, allowing many to send money back home, owners said.
“We are trying to support them by ensuring they get their salaries though we have little or no earning. But a substantial part of their earnings, coming from tips and service charges, is gone, which is why many have gone on leave. But they are still on our payrolls. Many of them have been working with us for a long time and it is very difficult to quit and find a new job as the whole industry suffering,” said another pub owner.
