40 pubs in Bangalore close down after huge losses

BENGALURU: The city’s once-vibrant pub scene is shrinking, with nearly half of Koramangala’s pubs shutting down in the past year. This decline is spreading across Bengaluru, with at least 40 pubs closing citywide and many more struggling.

One major reason is the shift towards house parties, as rising costs make pub outings less attractive. A recent excise duty hike has further increased beverage prices, discouraging customers. Footfall has dropped by 20-25%, putting immense pressure on pub owners.

The post-pandemic period has been particularly tough. According to the National Restaurant Association of India (NRAI), pubs and bars suffered heavy losses due to prolonged closures. Liquor sales, a key revenue source, were banned for delivery, delaying recovery. Even after reopening, operational restrictions and rising input costs—such as rent, labor, and raw materials—have made sustainability difficult.

The competitive market prevents constant price hikes, forcing businesses to rely on discounts to attract customers. However, deep discounting by food delivery apps has further squeezed pub profits.

Despite the challenges, the industry isn’t entirely collapsing. About 10-12 new pubs have opened, while some struggling establishments are rebranding, securing investors, or tweaking their formats to survive.

Bengaluru’s Pub Industry Struggles Amid Rising Costs & Declining Footfall

 

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