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New Indian Express
25-07-2025
- Business
- New Indian Express
Excise licence fee hike, liquor prices, rentals take the fizz out of Pub City
BENGALURU: There is a gradual decline in the number of watering holes in Pub City, especially in the past six months. Sources in the Food & Beverage (F&B) industry told TNIE that a 50 per cent hike in Excise licence fee, cut in corporate spending and insecurity regarding jobs have left telltale signs in falling footfalls and winding up of some liquor outlets. 'In the last six months, around 50-60 pubs and bars in the city have either shut shop or exchanged hands,' said Chethan Hegde, National Restaurants' Association of India (NRAI), Bengaluru chapter head, and owner of '1522', a prominent chain of pubs in the city, 'Hike in licence fee, manpower and rentals, along with escalation in liquor prices in the last couple of years has adversely impacted F&B business in the city,' he added. 'Bengalureans are grounded and smart spenders. An increase in liquor prices is impacting people, who love to dine out. They have cut down on the number of occasions they would go out to dine. It is liquor that spirals up the restaurant bill and people are being careful. Many have home bars. Instead of drilling a hole in their wallet to dine out, they would rather call in food from outside and relax with friends at home, at a much lesser cost and for a longer time, with no added headache of navigating through traffic and parking woes,' said another pub owner.


The Hindu
03-05-2025
- Business
- The Hindu
Bengaluru's restaurants see self-delivery systems as alternative to aggregators
As aggregator apps which provide food delivery services continue to increase their commission, restaurants in Bengaluru are looking for alternative channels, including self-deliveries and WhatsApp based-delivery systems in collaboration with technological partners. While the issue of commission is a huge burden that restaurants are not able to cope with when it comes to the apps which have a duopoly in the market, in the case of Open Network for Digital Commerce (ONDC), there are logistical issues concerning last mile-connectivity according to restaurateurs. While some restaurants are now working with ONDC to resolve these issues, restaurateurs are looking for win-win situations for both restaurants and customers without much hassle. 'Many restaurants and cloud kitchens which are dependent on food delivery are on the verge of shutdown or are not able to pay salaries to the staff due to the commissions imposed by the aggregators. The aggregators also force discounts on restaurants which do not work out for us. They also refuse to share our own customer data with us,' said Chethan Hegde, who heads the Bengaluru Chapter of National Restaurants' Association of India (NRAI). He added: 'This is why many restaurants are now trying to figure out self-delivery options. We are working with tech partners and delivery partners for this.' Just Fresh Point is a vegetarian restaurant which operates three outlets in Bellandur and Electronics City. Recently, the chain started its own delivery system on WhatsApp. A customer can just send a 'Hi' on the messaging app and browse the menu and place their order. The restaurant offers free home deliveries at dine-in rates up to 3 km and a delivery charge of around ₹25 to ₹30 for 3 to 5 km. 'This strategic shift also aligns with a growing trend among local food businesses to adopt more sustainable and community-driven approaches. By handling deliveries in-house and reducing dependency on third-party platforms, we ensure better control over quality and service — while passing on the benefits to our customers,' said Durgesh Shobhawat, co-founder of the restaurant. Many restaurants are mulling similar strategies to strengthen local delivery systems. 'Long before aggregators came around, many food chains, especially pizza chains were offering deliveries on their own with the help of phone calls. Even today, many chains have their own delivery systems up to a certain radius. This helps them maintain a loyal customer base,' said an owner of a popular restaurant in Jayanagar. Girish Pai, founder and CEO of GrowthFalcons, a seller-side platform on ONDC said that be it WhatsApp channels or even ONDC, they help restaurants acquire and retain customers without having to shell out higher commission. 'While ONDC can help them with acquisition, self-delivery channels can help them with customer retention,' he said.