Note Ban: Restaurateurs welcome decision despite short-term losses

Note Ban: Restaurateurs welcome decision despite short-term losses

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Prime Minister Narendra Modi on Tuesday evening banned the use of Rs 500 and Rs 1,000 notes with immediate effect to save India from corruption and the curse of black money. This demonitization move has been slated as a positive and a bold step taken by the Government.

Demonitization: Restaurateurs welcome Govt's decision; foresee short-term losses
The restaurateurs are worried about the short-term losses but expect a bright future.

Whereas mobile wallet companies are rejoicing the decision, it has left restaurateurs in a fix. They are worried about the short-term losses but expect a bright future.

Here is what restaurateurs think about the Government’s demonitization move:-

Priyank Sukhija, Owner, Lord Of The Drinks

“This has been the most legendary and phenomenal decision one could have ever imagined. 72 hours and black money eradicated, this is called the master stroke! This will create sudden cash crunch in the market but this is the only way to make entire black money redundant. On the contrary I thought that this will affect the business, but I was quite surprised and happy to see the willingness of people to spend with cards yesterday. I don’t think this will affect the business at all.”

Umang Tewari, Owner, Big Fish Ventures

“There are two sides of each coin and same is the case with this new rule. What a brilliant way to get corruption sorted at one go, this is for sure a welcoming decision. This might impact business in short run, as people won’t have cash initially but then Government is not taking the money back, they are just exchanging it. So with the patience and little time this will have better impact. The business will slowdown a bit. However, card users are spending the way they were.”

Dinesh Arora, Owner, Tourist
“It is a very big step for the economy but has taken everyone off guard. The move is likely to cause a huge amount of uncertainty and will disrupt transactions, especially for smaller hotels, restaurants like us. Today it’s a little bitter but this is for the bright future of the country.”

Varun Puri, Owner, Imly

“This is a bold and reformative measure taken by Government of India and we welcome this move but we also feel that this move could have been planned in a more better way. Right now there is atmosphere of panic and chaos. This should have been well thought. Yes, business have been impacted by this sudden move by Government but if we see in longer term this will enhance the economy.”

Inderjeet Banga, Owner, Prankster

“I think it’s a knock out punch by Mr Modi to the overall wealth of this economy. It might lead to slide in business in short-term till the time new currency logistics are worked out but overall the economy shall bounce back stronger and much cleaner. Also this being a strong message to everyone that the future is of plastic money people shall stop hoarding cash and instead earn and spend leading to increased demand overall.”

Joy Singh, Co-Partner, Raasta
“This step taken by our Government to curb black money issue is a welcoming decision. There will be a dip in overall sales for a few days because of the limited purchasing power but it will smooth out the moment new currency starts flowing. Today 90 per cent of our transactions happen through debit and credit cards, so hosting our guests would not be a problem. Even business doesn’t seem to be affected much as we pay all our employees and vendors through cheque.”

Sohrab Sitaram, CEO and Director, Keventers
“This is a pleasant and welcoming move by the Government. It will ensure smooth functioning of the business along with a proper accounting of the funds. It will not only smoothen the day-to-day process but will also bring all the systems and processes in place. The initial few months would be a bit difficult but in the longer run, it will beneficial for each business organization.”

Sahil Gupta, Co-owner, TabulaBeach
“This is a great step taken by the Government to eradicate black money from the country. Since it is a sudden move everyone is bit confused and panic. This will indeed affect the sales of the restaurant for a while as not all the customers find it convenient to pay by credit cards.”

Sameer Kohli, Co-owner The Hungry Monkey
“This is a great move by the Government. In the short run, we may see less footfall due to the shortage of circulation of the new currency in the market. However, we are sure that things will be back to normal in the coming weeks. All in all, it is a positive move.”

Manish Sharma, Owner, Molecule

“This is a brilliant move and much needed antidote to wipe out black money. This change will bring the cleanliness from deeper corrupted rules and a positive move towards better progressive India. This might have short-term affect on revenue, but in longer run, this will pave way for a better tomorrow.”

Swadeep Popli, Owner, The Chatter House
“The step taken by the Government for suppressing black money from the country will definitely make an impact. As per the current situation, there are many guests who are good spenders and hold a lot of black money but we also cannot deny the fact that there is a majority of corporate people who are purely into the card or digital transaction. In the long run, this initiative of the Government will bring transparency in business between Government and hospitality sector.”

Rahul Bhambri, Owner, Anncensored

“It seems to be a good move as it is the only way to get rid of unaccounted money and it will be good for long run with transparency in transactions.

Pranay Kumar, Owner, The Roost – Urban Bistro

“The immediate effect of demonitizing Rs 500 and Rs 1,000 notes is detrimental to the restaurant industry as ticket size is high as about 30 per cent of business happens on cash. However, in medium to long term it is a brilliant move to encourage innovation, new age entrepreneurs who respect laws and bring down the corruption and the people who used to rely on corruption to make monetary gains.”