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Shops, cafes can stay open 24/7. Will they?

With business being what it is, the night hours may only add to the wage bill without bringing in proportionate revenue, business owners say
Last Updated 17 August 2021, 07:06 IST

Open for business round the clock is an idea now allowed by a government that had for decades forced restaurants to shut at 11 pm.

Last week, the Karnataka government announced businesses registered under the Shops and Commercial Establishments Act of 1961 would now be allowed to operate 24/7 for the next three years. The revision in rules is expected to help businesses recover from financial difficulties caused by the lockdowns.

Trade bodies Metrolife spoke to welcomed the relaxation of rules, but did not see much by way of immediate benefit.

Manu Chandra, head of the National Restaurant Association India’s Bengaluru chapter, says a majority of restaurants will not rush to start all-night operations.

“And only establishments employing 10 or more persons can operate 24/7. This means your labour costs will go up significantly,” he adds.

All-night business is common in Western countries, is not feasible in India at the moment, he says. “The transport department also needs to be on board, and there is no sign of that. How will customers and staff travel at night?” he wonders.

Madhukar M Shetty, secretary of Karnataka State Hotel Association, says the new rules could help establishments on the highway, but they keep open all night in any case.

“The government proposed this before the pandemic but then a night curfew was imposed. People are worried about the pandemic and seldom step out at night. It doesn’t make sense for stores and restaurants to stay open and increase their labour, electricity and maintenance costs,” he explains.

Many eateries in Bengaluru wind up around 11 pm and some restaurants stay open till 12.30 am. They already have permission to keep open late during the weekends. Reopening at 6 am works best for restaurants and darshinis serving south Indian fare, says Madhukar.

An employee works for a maximum of 48 hours a week and even with overtime, cannot be made to work more than 10 hours a day.

Women employees are not allowed to work beyond 8 pm, unless they consent in writing to it. The employer should also take responsibility for the employees’ safety.

Suhail Yusuf, secretary of Brigade’s Shops and Establishments Association, says even if shops keep open for 24 hours, the hype will die down in a couple of days.

“Instead of proposing such ideas during a pandemic, the government should look at problems with GST and the hike in property tax. And what about the safety of the public?” he says.

Who can stay open

Restaurants

Theatres, multiplexes

Malls and shopping centres

Departmental stores

Grocers

Fashion outlets

Who can’t

Pubs and bars

Clubs

Liquor stores

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(Published 05 January 2021, 18:13 IST)

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