Demonetisation has been the talk of the country since Mr. Modi’s announcement on 8th Nov evening. The nation is supporting the cause and helping the government to achieve a corruption free India. But most common question is that is it the right way to reach the target? This move has definitely affected common man a lot.
The cash crunch has hit each and every household. People are slowly shifting to e wallets like paytm etc and credit cards. Retailers who used to deal only in cash have got the worst hit. In food industry multi national Restaurants and Hotels have also faced crunch. But they have funds to manage for few months. Whereas the local food joints like Chole Bhature valas and Chaat valas are facing a loss of around 50% everyday. I went to Nagpal Chole Bhature vala. Usually I used to wait for half an hour for my order. But I get it within 5 minutes now. The Chai vala next to my office has also confirmed the same. The factories are locked. Employees have moved to their home towns and are waiting for things to improve. These people are regulars of the local joints and their absence is giving a financial set back.
These joints can improve the business by use of e wallets. I saw my regular Dosa Wala doing the same. But this is only giving a relief of 10%. Still they have to recover the other 40% to get their profitability back. They are foreseeing that to happen by end of December. The other standalone restaurants are relying on credit card sales which is not that great.
Caterers are facing the worst times. They didn’t even go through such financial issues during recession. Functions are getting cancelled, marriages are getting postponed and caterers are facing the heat. Their clients are helpless as they are not able to take out enough cash. Not only caterers, their suppliers are also getting troubled. They are still looking for a solution and good days are endlessly away.
I assume the the situation will be better for them as well. But these are just assumptions. At present the situation is becoming worse day by day. This may lead to heavy losses, which may lead to closure of a lot of Restaurants.
dna.com and indiablooms.com