Bengaluru’s Pub Industry Struggles Amid Rising Costs & Declining Footfall
At least 40 pubs in Bengaluru have shut down over the past year, with those still in business grappling with soaring operational expenses, dwindling customers, and government-imposed price hikes. Industry players are calling for streamlined regulations, financial relief, and supportive policies to sustain their businesses.
The Bengaluru chapter of the National Restaurant Association of India (NRAI) reports that the city hosts around 2,000 pubs and breweries. In Koramangala alone, six pubs have closed, and many more are on the brink of shutting shop, according to NRAI secretary Ananth Narayana. A pub chain owner pointed out that house parties have become the preferred alternative to clubbing, further reducing footfall. Corporate spending has also declined due to job uncertainties, impacting the ₹600–₹1,000 crore pub industry.
Prajwal Lokesh, owner of Chin Lung Resto Bar, highlighted challenges like staffing shortages and aggressive competition. “Upskilling employees is vital, but without a supportive ecosystem, survival is tough. Discount-driven competition is making it nearly impossible for new businesses to sustain,” he noted. The complex licensing process, requiring at least nine permits, is another major hurdle.
Excise Commissioner R Venkatesh Kumar defended the liquor tax hikes, citing inflation and public health concerns. However, NRAI-Bengaluru president Chethan Hegde emphasized that rising alcohol prices, rents, and a 25% drop in customer visits have made it increasingly difficult for pubs to remain operational.
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