High on nightlife

Delhi bars, eateries expect 20 per cent jump in revenue

The jury is still out on the Delhi government's decision to extend the closing hours for retail outlets, restaurants and bars. More than a week after the new legislation came into effect, opinion among the would-be beneficiaries is divided.

Manoj Agarwal, president of New Delhi Traders' Association (NDTA) calls it a progressive step, but Jay Singh, Delhi franchisee of the F Bar and Lounge thinks extending the closing hours is a "nonsensical move that helps no one".

The new state legislation allows shops to be open till 11 pm (instead of 7 pm earlier) and restaurants/bars to serve till midnight.

Bars in 5-star restaurants can serve customers till 1 am. Earlier, these places could opt for an hour's extension by paying an additional 50 per cent of the licence fee.

The new law has made it mandatory for all restaurants, pubs and bars to pay 10 per cent of the licence fee as additional money for the extended timings (licence fee for an under-100 seater joint is Rs 4.5 lakh a year).

Jay Singh believes that with this mandatory payment, the government's net revenue will go up. However, a senior excise department official says that it is not a revenue mopping exercise. "It's a step to keep up with Delhi's cosmopolitan nature." Delhi has over 200 bars and pubs and the government earned Rs 700 crore last year from liquor sale.

Whether the state government gains or not, the fact is that several trader organisations are upbeat. Manbeer Choudhary, president, Hotel and Restaurant Association of Northern India expects customer spend to go up by about 20 per cent.

Restaurant and bar executives like Tejinder Sodhi, managing director, Opus Lounge and Joy Jacob, manager, Mandarin Court, agree and hope to see a 20 per cent jump in business. A significant portion will flow from retaining customers who used to move to Gurgaon or Noida because of the 11 pm deadline.

It's not just restaurant and bar owners who are looking at an increased turnover. Even shop owners are pleased. "Delhi has been losing business to Gurgaon and Noida. Last year alone nearly 15 per cent of Connaught Place's business moved to these two places," says NDTA's Agarwal. According to him the government move may help push business by about 15 per cent.

D S Sodhi, president, Vasant Vihar Traders' Association does not agree: "If there is no business till 7 pm how will it surge if shops are open till late. There's still a recession in the market." Besides law and order, shortage of water and power are among the other problems.

"There'll not be any real impact of the new timings," says Arvind Singhal, chairman, KSA Technopak. "Where is the extra money going to come from," he asks.

He feels retailer profits are likely to dip as overhead costs go up. "Other than restaurants, only modern retailers like Shoppers' Stop who have a retail system in place are likely to gain," he adds.

Clearly, the evening is still young to decide whether a couple of extra hours would make Delhi a shopper's paradise with a throbbing nightlife.