Bars are doing a great business not only at nights but also the whole day.
The bar business is growing in India at almost 20 per cent and is one of the fastest growing industry. There are about 6200 licensed bar premises in India with market size of 11500 crore growing at a CAGR of 20 per cent.
With younger crowds getting fancy of these new establishments, this concept is really electrifying the market in a big way. For example, if a typical restaurant gets 20-25 per cent profitability, the bar does 40 per cent, which is way ahead of them. “Our margins are 30 per cent because the competitions are going higher, which effects the pricing. The culture is changing now, there are many singly women introducing the most innovative concept,” shares Priyank Sukhija, Owner, Lazeez Affaire Group.
Today, the focus is shifting from casual dining and fine dining to these bars. Bars are doing a great business, not only in night time, but also the whole day. For example if your bar is located at a place like CP in Delhi, then it is attracting people for lunch as well. Similarly, there are bars which are trading on all-day breakfast menu. “I think bars are the next coffee shops in India. Bars are quickly taking over as public spaces. It is working as pivot for community to gather around and know each other,” says Riyaaz Amlani, President NRAI and CEO- Impresario Entertainment & Hospitality.
Also, the places which do not have bars are ultimately becoming a place where there is very little cross society pollination. “Bar offers much more democratic and neutral ground for people from various backgrounds to collaborate and partner,” adds Amlani, who runs one of the most quirkest concept, Social, in the country.
Trading on customers
Everyone today looks at bar as not only a drinking place, but also a place to host an event, a party and gather over a business meeting, it is giving more chances to people to come repeatedly to their outlets. For example, bars are having an area which they have donated as a workplace, an area where people can host business meets, which is working as an all day trade centre.. “What is happened is because of the competitive pricing people who have disposable income are coming more to the bars,” points Sukhija, who believes that its not about weekend businesses at these places, but also weekdays.
Adding to the same concepts, Amlani comments, “All segments are getting fairer customers. There are people who like to go to a neighbourhood bar for a cozy experience and also there are set of customers who prefer a nice large bar experience.”
And, hence as the whole shift is coming from restaurants to bars, there is lot of penetration in the segment. “In the last three years the shift is moving towards bars. What is happening is that standalone bars are giving much more varied experience and secondly women customers are growing as compared to few years back,” says Sandeep Arora, Director, Spiritual Luxury (P) Ltd India.