The state government’s 50% increase in excise licence renewal fees this year has put pressure on bar, restaurant, and wine shop owners to either raise prices or demand better profit margins. The CL-9 licence fee for bars and restaurants has surged from ₹6.9 lakh to ₹11 lakh annually, with similar hikes for other licence categories.
Vadi Shenoy, owner of Tandoor Bar and Restaurant, said the steep fee hike will lead to a 5–10% increase in food and liquor prices within the next two to three months if the government does not reconsider. Another owner, Louis J Pinto, noted that competitive market conditions prevent an immediate price rise. Instead, he urged the government to double their profit margin from 10% to 20% to avoid burdening customers.
Industry representatives are also requesting that wine shops holding CL-2 licences be allowed on-site consumption, and that bars be permitted to let customers carry liquor outside — both currently prohibited.
Wine shops, unlike bars, must sell liquor strictly at MRP, offering no room for price adjustments. Ramesh D Nayak of Rathna’s Wine Gate stressed that restoring the pre-2017 profit margin of 20% is crucial for survival. He added that recent price hikes have hit mainly low and mid-range liquor, sparing premium brands. Meanwhile, shop owners face mounting costs from rent with 18% GST, salaries, and other operational expenses