An impact analysis of likely shut down of eateries and liquor bars shows a consumption slowdown across the country with Maharashtra and Karnataka, where restaurants and bars account for more than 40% of total outlets, taking a significant hit.
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.
A study on presence of bars and restaurants in 10 states, including Maharashtra, Karnataka, Delhi, Uttar Pradesh, Andhra Pradesh, Tamil Nadu and Kerala by the brokerage, suggests that Maharashtra and Karnataka have the largest presence of hotels and restaurants.
Though Karnataka government has not yet imposed a shut down order on liquor bars and restaurants, it has asked beer outlets to down shutters.
In Maharashtra too, where the government has revoked permission to all kinds of public functions for sometime, it has not banned hotels, restaurants and pubs 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 March 8-13, 2020 were marginally higher than March 1-7, 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.
(Published 17 March 2020, 09:16 IST)
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