Are the booze-loving MNC employees in Bangalore invoking bacchus’ blessings for an early end of the global economic slowdown this new year? The tipplers in Bangalore had to cut down on their ‘intake’ ever since the management tightened their otherwise loose purses after reducing profit margins.
The ‘toasting-the-good-times’ syndrome seems to be nearly over for many restaurants, bars and pubs with recession-hit corporate firms slashing ‘party’ expenditure and regular IT ‘customers’ staying indoors.
The pubs, once the rendezvous for corporate celebrations, have seen a 20-40 per cent dip in business. Besides, the ban on smoking and terror strike in a pub and hotels in Mumbai have added to their cup of woes.
“We have been terribly hit. Our sales have dipped by 20 per cent,” says Ashish Kothare, President of the Association of Pubs and Restaurants, Bars & Hotels, Bangalore.
The sales had begun to drop from last six months but the impact is more visible in the last three months, says Ashish, who also runs popular pubs, Le Rock and Legends of the Rock. With corporate income shrinking, budgets for bashing were reduced.
“Now the companies are not ready to even spend one-third of the budget they used to have before the big low,” says Colin Davis, Unit Manager, Tandoor.
The average billing between Rs 80,000 and Rs 100,000 for a 15-member high profile corporate firm has sunk. From a five-course meal accompanied by premium scotch, white wines, imported whisky and cocktail, parties have now made way for a three-course meal, with alcohol given a miss often.
“The average bill of Rs 850 per head has dipped to Rs 400,” says Colin.
The once-busy pubs, where glass tinkling and “Make it Strong” pealed the air, have now seen a rather subdued activity.
“The loud laughter at parties and fiery cocktails have all dwindled,” laments Ashok Sadhwani, General Secretary of Bangalore Restaurant, Bars, Pubs Owners Association. “There is no crowd coming here now,” he says, while estimating the decline to as low as 50 per cent.
The statistics were depressing with corporate parties slipping from two to three times a week to a measly two times a month. It is not just the corporate and IT firms that have learned to abstain from bashes, individual clients are also turning out to be thrifty now. Interestingly, Sadhwani, a usual customer who downed four shots during joie-de-vivre has now rationed it down to just one or two.
Though most continue to be loyal to their favourite brands despite the premium pricing, some prefer to shift from strong to light.
The pubs, bars and restaurants located at an overwhelming IT residential area had been largely impacted compared to those in the prime shopping areas. “My outlet at Kormangala (area largely dominated by IT personnel) has seen numbers dwindling while those at shopping area Brigade Road are less affected,” says Kothare.
