High-rent properties stare at record losses amid liquor prohibition

Kolkata: EC's liquor prohibition for nine and a half days over the next fortnight will ostensibly take the worst toll on restaurants and pubs in shopping malls as such establishments pay high rents, a significant portion of which is realised through liquor sales. Owners of most leading restaurants in malls pointed out that for April, a majority of them would plunge into the red because of higher rents they paid, compared with the amounts that their counterparts on high streets paid.In malls, where restaurants generate 12%-14% of the overall revenue, operators fear a 50% slash in April revenue amid the liquor ban, spanning nearly one-third of the month. Liquor contributes to 30%-35% of restaurant bill value on an average. "The direct impact will be on restaurants, where sales will get halved. Parties and celebrations lined up on weekdays will be impacted, too," said a mall operator.Another mall manager said the dip in footfall could impact retail sales as well. "Usually, the time around Akshay Tritiya is good for business. Such a prolonged liquor ban at this juncture is unfortunate for business," he said. The chairman of Speciality Restaurants, Anjan Chatterjee, told TOI the prohibition would have a big impact on restaurants like theirs. Chatterjee has 19 restaurants —Mainland China, Oh! Calcutta, Cafe Mezzuna, Haka, Asia Kitchen among them—in six malls. According to him, some of his establishments, such as Hoppipola, Cafe Mezzuna, Siciliana by Mezzuna and Asia Kitchen, were more dependent on liquor than others, so the impact on those brands would be worse. "In these brands, liquor constitutes 40% of sales. We will have to book losses for the month. Most of the properties in malls will incur losses in April," Chatterjee said. He pointed out that like in the pandemic, he would not request malls for a discount in rent but would rather bear the losses for a month.Rishi Bajoria, who has four outlets of Chili's Grill and Bar and one of Royal China in Kolkata, said footfall and sales dropped by over 50% ever since the prohibition kicked in on Monday. "Those who want to have a drink with their food will stop visiting restaurants and instead have it at home... we expect a 30% slide in April's turnover," said Bajoria. A spokesperson for the group that runs Skai, The Irish House, Bombay Brasserie in Quest, said in some of their properties, liquor sales accounted for 50%-55% of revenue. The group runs five restaurants in the mall. "We will make losses in April," he said.
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