Mangaluru: The state govt’s decision to hike the excise renewal licence by 50% this year has forced bar and restaurant owners to increase food and liquor prices.The CL-9 licence fee has been increased from an annual Rs 6.9 lakh to Rs 11 lakh, and the hike applies to other types of licences as well.Vadi Shenoy of Tandoor Bar and Restaurant said that with the increase in licence fees, both liquor and food prices will have to be raised by 5% to 10% in the coming days. “If the govt does not roll back the fees, we will implement the hike in another two to three months, or before the end of the year,” Shenoy added.Another bar and restaurant owner, Louis J Pinto, said they have no immediate plans to implement a price hike as the market in the region is highly competitive. “Instead, we are asking the govt to increase our profit margin from the current 10% to 20%. This will be fair and help us avoid a price hike, which would directly burden our customers,” he said.Other demands put forth to the govt include allowing wine shops (CL-2 licence) to permit on-site consumption. Currently, the licence allows the sale of liquor in bottles to be taken away from the premises. Additionally, we are seeking permission for bars and restaurants to allow customers to carry liquor outside the establishment, which is currently prohibited, he said. While bars and restaurants can raise their prices, wine shops are bound to sell liquor at MRP, leaving them with no flexibility. Ramesh D Nayak of Rathna’s Wine Gate said that increasing the profit margin is the only way for wine shops to survive. “The profit margin was 20% before 2017, but it was removed after that. We want the govt to reinstate it. Moreover, the price hikes have affected only cheaper and mid-range liquor, not premium brands, which makes it harder for consumers. On top of that, wine shop owners like us have to bear rent with 18% GST, staff salaries, and other overhead expenses,” he explained.
