First day, no show: Rs 130cr loss & counting for liquor, hospitality biz in West Bengal

KOLKATA: The first day of the prolonged pre-election curb on sale of liquor translated into a Rs 125-130 crore loss for Bengal's liquor and hospitality business on Monday, said industry insiders, who fear the figure might be higher for Day 2 since footfall in bars and restaurants generally tend to go up on Tuesdays.

The unprecedented nine-and-a-half days of ban on liquor sale came into force across Bengal on Monday following orders from district authorities. While Election Commission officials claimed they just wanted the regulatory dry period to be followed (usually 48 hours before polls), seniors in the excise department and district administration insisted they were acting on "verbal orders from those overseeing the election in Bengal".




Bengal votes in two phases on April 23 and April 29. The liquor sale ban extends from April 20 to May 4, except on April 24 (Friday) and half-a-day on April 25.

For the 3,300-odd liquor off-shops in the state, Monday's closure meant a total loss of about Rs 65-70 crore. For bars, which account for 40% of liquor sales in the state, the loss amounted to around Rs 30-35 crore, liquor business experts said. Hoteliers and restaurateurs claimed a majority of restaurants in Kolkata witnessed a 60%-70% drop in footfall on Monday, resulting in a sharp drop in sale of food as well. Food sale at bars and restaurants, which hovers at around Rs 50 crore per day except on weekends when it is higher, is almost down by half.

President of Hotel and Restaurant Association of Eastern India, Sudesh Poddar, said average footfall is down to just 30% for most restaurants. "With no liquor, food sales has also been affected severely. For most restaurants, the ratio of liquor to food sale is 60:40," he said.

President of Bengal Association of Hotel and Restaurant, Suborno Bose, who owns a restaurant called Xspicy in Sector V, said while the entire industry has been affected, Sector V is worst-off as it has a vibrant pub culture.

Footfall drops by 70%-75%: Owners

We had very few customers on Monday, and Tuesday was equally bad. The order is unprecedented," said Suborno Bose, president of Bengal Association of Hotel and Restaurant, who owns Xspicy in Sector V.

Maloy Dutta, partner of Opium Bar and Restaurant in Sector V, said there was an 80% drop in footfall at his establishment on Monday and Tuesday. "We hardly have any customer. In Sector V, there are 40 bar-cum-restaurants and each is facing the same fate," he said.

Charles Mantosh, owner of Waldorf, Floriana and Magnolia, said his outlets are wtinessing a 75% drop in footfall. "If this continues for the next 10 day, we will face huge losses," he said. Pradip Rozario, owner of KK's Fusion, said the liquor-ban order, coming on the heels of the LPG crisis, has come as a huge shock. "Our footfall is down 70%-75%, so food sale is also down. We are telling our boys to prepare new menu to attract customers," he added.

A few restaurants like Peter Cat and Mocambo, however, witnessed lesser drop in business. The owner of these restaurants, Nitin Kothari, said for them the footfall drop till now is around 6%-7%.
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