Bengaluru’s pub industry struggles as closures rise amid cost surge

The city's vibrant pub scene is under strain, with at least 40 establishments shutting down in the past year. Rising operational costs, dwindling footfall, and government-imposed price hikes have put immense pressure on the industry, prompting calls for financial relief and streamlined policies.

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According to the National Restaurant Association of India (NRAI) Bengaluru chapter, the city is home to around 2,000 pubs and breweries, but many are struggling. Koramangala alone saw half a dozen closures last year. Industry insiders warn that more may follow.

Party-goers have reduced due to the growing trend of house parties, while corporate spending has dropped significantly, say pub owners. They attribute the crisis to job insecurity and layoff fears, which have made customers cautious with their spending. The city's pub industry, valued at ₹600-1,000 crore, is feeling the impact, as real estate, salaries, and other expenses rise by 10% annually while profits shrink.

Complex licensing procedures add to the burden, with pubs requiring at least nine permits to operate.

With the recent beer and liquor tax hikes due to inflation and public health concerns, pub owners argue that increasing costs and falling demand threaten the survival of many pubs.