Tuesday, March 10, 2009

The PARTY is all set to END

The PARTY is all set to END

Several pubs have closed down in the city and more are likely to follow suit

Soumya Menon. Bangalore



Time was when Bangalore boasted of a happening nightlife with its pub culture being appreciated by party-hoppers from across the country and even abroad.
However, pressure from hardliners belonging to the ultra-rightwings combined with an economic downturn, has sounded the death knell for several pubs across the city, forcing many a bar owner to look for business in other cities.
In the wake of the 11.30 pm curfew on serving liquor at pubs and the ban on dancing in places where there is live music, the industry seems to be crumbling, according to pub owners.
Taika, a pub on Church Street, was recently bought by Sonam Lamba, who also owns Kosmo.
There are several other pubs in the city which are planning to go on sale. With most of them being unable to sustain their business, many fear that the number of pubs in the city, which currently stands at 50, might come down by half.
Ashish Kothare, president of the Hotels and Restaurants, Pubs and Bars, said the pubbing scene in Bangalore might soon become so bleak that a day might come when the city would be left with no pub.
"There is every possibility that pubs across the city will shut down as they have been badly affected and are running losses. The government seems to lack a vision for the future. They have introduced too many bans, thus killing the entertainment business,'' he said.
He said that at a time when the industry is going through a low due to the global meltdown and related factors, the government should have helped by reducing taxes.
"They have to bring down interest rates, reduce the excise fee and cut down on taxes to save the business. Instead, they increased the taxes by another 15% recently. In the last 10 months, there has been a 35% hike in the taxes for pubs,'' said Kothare.
He warned that if the government continues with this policy the city might have to do without the pubs completely. "If this goes on, pubs will shut down in Bangalore and move to other cities where the rules are flexible and the market is conducive to business growth. Chennai is very strict on rules, so it won't be a favoured destination for pub owners. There are chances that they will consider moving to Hyderabad and Pune,'' said Kothare.
Talking about licences, Kothare said there are no fresh or official licences available. "There is a licence mafia functioning in the city wherein the old owners of pubs who have licences are selling them to others through agents. They end up earning money, while several others have to do without licences. There are occasional licences with the daily fee of Rs10,000. To buy a licence in the black market one has to shell out at least Rs50 lakh,'' he said.
There are two types of licences available. The CL-9 licences are for bars and restaurants and the retail vend beer licences for supplying draught beer.
Owner of Pub World Ashok Sadhwani said that it is a dire situation and pub owners are not happy with the business. "The scenario is too grim. Soon, we will witness pubs in Bangalore shutting down and people moving over to other lines of business. It has already started happening; several pub-cum-restaurants are planning to shut down in a month. The ban on smoking, dancing, hike in excise fee and the curfew on late night partying and now recession — have all affected the business," he said.
Another pub owner, on condition of anonymity, said pub owners are also considering moving to Goa, considering that the scene is much better there than in Bangalore. "Here the excise fee is almost Rs7.5 lakh a year and most people cannot afford it,'' he said.
Restaurateurs have been affected the most, with several of them advertising in newspapers, putting up their places for sale. "Nobody wants to be in Bangalore,'' he added.

0 Comments:

Post a Comment

<< Home