Almost half of the members of the Indian Hotel And Restaurant Association (AHAR) in Maharashtra have not renewed their liquor licences on March 31, putting on view the pulverised state of the industry that has been beaten down by the Covid-19 crisis. The renewal of the FL3, which is essentially a liquor licence needed to serve alcohol in hotel and restaurant premises, usually runs into lakhs of rupees. With complete lockdown and zero business for months in 2020, and the added weight of overhead costs and staff salaries, the hospitality industry has been bruised like never before. And now, the resurgence of Covid-19 this year followed by lockdown like restrictions in several parts of Maharashtra including Mumbai, which has imposed a night curfew from 8pm to 7am, has left restaurant, pub and hotel owners in dire straits. So around 45% of AHAR members have not renewed their FL3 permits.
According to AHAR general secretary Sukesh Shetty, the 50 per cent cap on occupancy amid rising Covid cases has halved their business prospects. And the night curfew has slashed their profits 15 per cent more. “We are operating with 65 per cent of our staff and there will be more unemployment if the situation continues as we won’t have the money to pay salaries. We want the government to do some handholding in this scenario, give us some concession, some relief. If the current situation persists, many big and small restaurants will be shut forever,” he said.
Close to 30 per cent hotels have pulled their shutters down for good, according to some industry estimates. About 20% are yet to resume fully and the remaining 50 per cent are still reeling under the burden of losses incurred during the first wave of Covid-19.
Maharashtra, which has been the state worst-hit by the pandemic in India, reported 43,183 new cases on Friday – its highest since March 2020. Chief minister Uddhav Thackeray said he cannot rule out imposing another lockdown in the coming days.
While illicit bars and restaurants are mushrooming in the maximum city and operating without fear or a licence, many genuine proprietors have decided to stop serving liquor at their establishments, some sources at AHAR alleged. Alpa Mangrekar has a pub cum lounge bar, Mira Republic, on Mira Road. “We somehow managed to renew the licence last time. Things were looking up, but now there is no business at all and no money to pay. If this situation continues I will have to wind up my business. Crowding is happening at several places. Look at the trains, or just go to the markets. Why are we being targeted like this? After all, we are doing business and following all the norms strictly. At least extend the time for 8 to 10 (at night); that way we have some hope to break even and pay for expenses including salaries,” she said. “Right now, I have some guests but I had to ask them to leave as we can’t serve liquor without a licence. But renewing a licence which will cost lakhs of rupees is an unviable option at this point.”
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