SC rule may have changed but restobars still face red tape

“The FL-2 license allows bars to be opened without being attached to any hotel with rooms. It is not that easy to obtain one of these, but political influence and bribes really help. There is also a L-4 license that is cheaper and lets eateries serve only beer and wine, but it isn’t very popular as Chennai hasn’t really caught on to the ‘wine and dine’ phenomenon yet,” says a source from the industry. Restobars have been opening gradually over the course of the last six months – ever since the Supreme Court clarified its stance on the highway liquor ban. Permission is issued under several categories, with most permit rooms and bars attached to star and non-star hotels possessing FL-3 licences. 

However, it is the FL-2 license that is helping most of these new owners, as it is not compulsory for them to have a storeyed building with guest rooms under the regulations of this license. This essentially applies to stand-alone pubs, which occupy pride of place in the town. But is the license easy to obtain? “Some of the business owners really go about getting the permission the right way and play the waiting game – but several others fast-track it by hook or crook. 

When some of them get found out, then there is a temporary lock-down until all the licenses are properly granted or renewed,” the source adds. From customer complaints that these establishments don’t meet the advertised standards to some places taking a ‘break’ barely a month after their opening and others closed indefinitely – there is confusion abound everywhere. Fluctuating prices and bar managers/ waiters promoting imported (and more expensive) liquor over domestic brands has also angered patrons. 

“Last week, my friends and I couldn’t find beer by a domestic brand at three of these new spots. After spending so much time booking a table and getting to a venue, it’s extremely frustrating. At the end, we didn’t want to waste any more time – so ended up paying the exorbitant price,” says M Malavika, a college student in the city. “There are close to 16 other permissions to be granted even before the liquor license comes into play. 

For a new restobar to run, revenue of atleast 30 lakhs is to be expected monthly – otherwise the owners won’t be able to sustain it,” adds well-known entrepreneur in the food and beverage industry, Raghu Raman. 

DJ Kartheban Ramasamy, who plays at several outfits in the city, says, “There are not enough people, like in Bengaluru, who step out to drink. It’s only the weekends when there is enough footfall.” For instance, Sherlock’s Pub – famous for its Bengaluru outlet – opened at Kilpauk towards the end of January. Barely a month later, it has been closed for renovation. When contacted, Ramkumar Raju from the Chennai franchise says that licensing issues as well as some facility upgrades were in order. 

“We wanted to get all the licenses in order officially, as well as service our air-conditioners in the space and ensure the customers were happy. We will open again in a week or so. What’s more – there’s another Sherlock’s opening at St. Thomas Mount in March, followed by ones at Velachery, OMR, etc. How could we plan all this without making sure everything was in place?” he insists. 

Bar consultant and founder of AD associates, Arasu Dennis, who has managed several pubs over the last decade in Chennai, says that the influx of new bars have definitely impacted the market and footfall by around ten per cent or so. “There has definitely been a vibration felt of late. The market is open since there is a new generation of pub-goers discovering partying right now. Having said that, with fewer options available earlier, patrons felt safe and trusted us. It was easy to sustain business then. Now, within three months of frequenting a new place, customers tend to go back to their old favourites – or try the newer ones."