COVID-19: Karnataka, Maha to take a hit if bars closed

Karnataka, Maharashtra to take a hit if bars shut down due to coronavirus

The usually crowded Brigade Road in Bengaluru wears a deserted look as people did not venture out following Covid-19 outbreak. DH PHOTO/ THEJAS G D

An impact analysis of likely shut down of eateries and liquor bars shows it could impact Karnataka and Maharashtra more as restaurants and bars account for more than 40% of total outlets in these states, dataset of 10 key states by brokerages shows.

Though Karnataka government has yet not ordered a lockdown on its liquor bars and restaurants, it has asked beer outlets to down shutters.

Domestic brokerage Emkay Capital has estimated that lower footfalls in bars and restaurants together with postponement and cancellation of several events may impact on-premise consumption. It, however, said the off-take from retail shops is likely to be steady, restricting the overall impact.

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A study of the presence of bars and restaurants in 10 states, including Maharashtra, Karnataka, Delhi, Uttar Pradesh, Andhra Pradesh, Tamil Nadu and Kerala by the brokerage, suggests two states of Maharashtra and Karnataka have the largest presence of hotels and restaurants.

In Maharashtra, where the government has revoked permission to all kinds of public functions for sometime, it has not banned hotels, restaurants, pubs and shopping from functioning.

In Tamil Nadu, however, the Madras High Court, has issued a notice to the state government, to close down all state-run liquor shops and bars to curb the spread of coronavirus.

The brokerage said the weekly volume data from Karnataka and Andhra Pradesh is not yet showing any  drop in volumes as average volume per day during 8-13 March 2020 was marginally higher than 1-7 March 2020 compared to the same period in March 2019.

The Bengaluru-based online food ordering and delivery platform, Swiggy, however, has, said that their delivery partners were continually being trained in best practices of respiratory hygiene, proper method and frequency of washing hands and identification of associated symptoms.

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