Owners Say Delhi Govt Sending A Wrong Signal, Putting Huge Investments At Risk Amin.Ali@timesgroup.com
New Delhi: “Imagine you go to a coffee shop and you are informed you do not have the licence to serve coffee. What will be your impression of the brand,” asks Rahul Singh of The Beer Café. After opening a chain of restaurants across the country, Rahul says his new outlets in Delhi do not have the licence to serve beer. It is hard to explain to every diner that his licence is not being issued despite fulfilling all the requirements, he says with dismay.
“We are an equity-funded company that has attract-ed investments from abroad. Now, we are expected to tell our investors that our business is suffering as the state government is not issuing licences,” he says, asking whether this is the `ease of doing business’ that the Delhi government wants to project and promote.
Rahul is among many such restaurateurs in the city who have invested in concept spaces and are paying monthly rents and salaries to run them but are yet to receive a licence for serving liquor. Many restaurateurs have met the excise commissioner, explained their problem to Delhi tourism minister Kapil Mishra and were promised all possible help. They have also sent a memorandum to deputy CM Manish Sisodia, ex-pressing their concern, but to no avail. The excise department says there has been a verbal communication and that the “order has come from the top”.
A restaurant-owner claims there are at least 50 places that must have invest-ed at least a crore in interiors and are paying rents in several lakhs apart from salaries but do not have the liquor licence. “The investors are bleeding through their nose,” he complains bitterly, requesting anonymity.
One such restaurateur, Umang Tiwari of Big Fish Ventures, that runs several places in Delhi, NCR and other parts of India, explains his focus has now shifted from opening new places to getting his newly-completed projects operational. “We fulfilled all requirements, completed all formalities and are now sitting idle, waiting for the licences,” he says. Umang’s two new ventures —Local and Auro — “Se were completed in September but are still waiting for that critical licence.
Joy Singh of Raasta, who is opening a concept restaurant, The Permit Room, in Connaught Place is not sitting back and letting his business take a hit. He says there is nothing in writ-ing to prevent him from get-ting a licence. So, he has approached the Delhi high court. “Liquor contributes to a significant portion of our sales. There is no clarity on why permissions are on hold. It takes about six months to open a new place — from finalizing a space to designing the concept and meeting timelines to be eligible for a licence,” he explains.
Ambiguity on serving in terraces and demonetisation have added to the industry’s woes
While round the globe, popular tourist destinations, such as Singapore or Sydney, have their tourism promotions centred on their bustling food and beverage scene — where you can dine and drink in open to enjoy unmatched views of prominent landmarks — restaurateurs rue that Delhi boasts of a most vibrant eating out scene in the country but does not exploit its potential.
One of them, on condition of anonymity, pointed out that Gurgaon with a population of about 2 million people has 287 licensed restaurants which serve liquor, Delhi with a-most 25 million people has just 709 such licensed spaces. Other cities such as Mumbai (2,233 licences), Bengaluru (1,372) and Pune (933) fared much better than Delhi. “No new liquor licences (L-17) have been issued in Delhi since August. While on one hand, the government claims to be curbing drinking on roads, cars or at places close to thekas, on the other hand, by not giving permissions for safe and licensed premises to serve alcohol, it is indirectly pushing people to-wards such practices,” he explained.
He recalled that a state saw ban on sale of alcohol a few days prior to polls but, ironically, Delhi is seeing a ban on new licences as another state, Punjab, is going to the polls. AAP doesn’t want to be seen promoting liquor.
Sameer Madan, an investor in various restaurants, says such policies dis-courage people from putting their money into the busines. The industry anyway has a high mortality rate with about 90 per cent of places closing down in the first six months of opening. “The restaurant business had started attracting a lot of first-time investors who saw it as an industry with potential. But if many new players are made to struggle with paper-work and are not able to operate their space to full potential, they will back out,” asserts Sameer.
If these rules were not enough of a problem, ambiguity on serving in terraces and demonetisation have added to the industry’s woes. Atul Kapur of Q’Ba says their business needs daily infusion of cash to meet daily expenses, such as buying raw materials. “Many new dedicated eating spaces that were to add to the city’s image are struggling due to various policies. Projects and investments are stuck as a result,” he laments.
Anchit Kapil, one of the many youngsters who jumped on the restaurant bandwagon due to its promising prospects and partnered in Summer House Café and Bunta Bar, says the country needs a national restaurant policy if it is to take its tourism initiatives seriously. Zoravar Karla of Massive Restaurants that runs popular outlets – such as Farzi Café and Masala Library — says the excise policy of the city is becoming a major hindrance for restaurant owners. “You finalise the lease, invest in interiors, hire manpower, and just when you are about to open your restau-rant, you are told there is no liquor licence. How is one expected to run a place or even meet the operational costs,” asks Zoravar.
A restaurateur, who didn’t wish to be quoted, revealed the daily problems a restaurant faces. “Running a restaurant is a daily struggle. Any day, any authority can land at your premises and question you. If there is the excise department one day, it could be police personnel asking for the music to be stopped the next day. The restaurant industry should be appreciated for enhancing the city’s image but is constantly being targeted unfairly while five-star hotels are being favoured,” he stresses.
Most of the restaurants we spoke to are now waiting for the December 7 hearing in the high court where their plea to issue new liquor licences will be taken up.
Tomorrow: Drinking in the open