Crushed by pandemic, Bengaluru’s hotel industry digs deep to reinvent itself

The hotels' industries association states that nearly 5,000 hotels have closed in the city

The city’s food industry — consisting of roadside eateries to star hotels — has been reeling under the debilitating impact of the pandemic.

More than 20,000 hotels, including the popular darshinis, service halls, fine-dine restaurants and bars, reflect a diverse food culture catering to thousands of corporate workers and students. The darshinis serve more than three-fourth of the population and employ over two lakh workers ranging from chefs to managers and cleaners.

The hotels' industries association states that nearly 5,000 hotels have closed and have left 50 per cent of the workforce in the sector jobless in the last one-and-a-half years.

Catering to the dynamic, on-the-go crowd, the darshinis constitute more than 50 per cent of the city’s hotels. These eateries benefit their owners a great deal since they need about 15 to 20 employees, unlike a service hotel that requires 50 employees on an average.

While 1,500 of the darshinis have closed their doors, a few are on the verge of closure due to unforeseen losses brought on by the pandemic.

“The service hotels and non-vegetarian hotels might somehow manage during the unlock regime, but darshinis will be the worst hit,” said Chandrashekhar Hebbar, President, Karnataka Pradesh Hotels and Restaurants Association (KPHRA).

“The lower middle class, working class, students and the poor prefer eating at these places. There are also customers who prefer fresh and fast food served out of the open kitchens and prefer to visit darshinis,” Hebbar added.

Bruhat Bengaluru Hoteliers Association (BBHA) President PC Rao said about 3,000 lodges in Central Business District have shut their business.

"As an industry, we have lost business worth Rs 20 crore every day. Even the hotels that are kept open for parcels now are only doing 25-30 per cent business. Many of our workers have returned to their native places. We do not know if they will come back till the hotels are allowed to fully function," he explained.

Though hotel owners did not hike the prices of food items two years in a row, operational costs have shot up considerably.

“Many hotels are unable to pay property taxes, electricity and water bills, salaries, statutory payments and rents,” Rao said.

“Bars and restaurants should also renew their excise licences by the end of June, and it is going to cost them lakhs of rupees. Despite our multiple reminders, requests and pleas, the government has turned a blind eye towards our problems," Rao said.

On behalf of KPHRA, Hebbar had submitted a memorandum to Chief Minister B S Yediyurappa a few days ago, with demands such as property tax waiver, Bescom’s minimum support proce, professional taxes, rebate on licence renewal, besides a relief package for employees in the hotel sector.

Cost-cutting measures

The associations have also been working on measures to keep their businesses afloat. “Despite high running costs, we are willing to adapt creative measures to attract customers,” Rao said.

They want to cut down on food wastage, which they estimate to be 30 per cent between the grower and the consumer. With cooking oil prices touching Rs 100 per kilogram, they also plan to reduce the quantity of oily food items like vadas and pooris.

Though they are managing with 30 per cent workforce since only takeout services are allowed now, the BBHA has several initiatives to boost business. “Without increasing our prices, we want to give something back to our customers,” Rao said.

Putting up photographs of their vaccinated staff, including sprouts and salads in the menu, serving only hot food, creating a customer database and having their own delivery service to break the monopoly have come up in their discussions, a senior member said.

With no investors ready to put their money in the industry, the industry is looking up to the government for relief, without which thousands will lose their jobs.