24×7 restaurant plan faces many hurdles

1. 24×7 Restaurant Plan
Faces Many Hurdles
All-night eateries may not become a reality unless the
multiple and contradictory local restrictions in the
states are changed, say restaurateurs

2. Contd…
Stopping at your favourite restaurant to grab a bite in the wee hours may still
not be possible unless multiple and contradicting state-level laws are
changed, operators said, citing the fine print in a bill approved by the Cabinet
allowing shops and eateries to open all day and night.
While officials at fine dining outlets, bars and quick service chains said the
move would bring in a much-needed boost to a sector that has been reeling
under single-digit growth due to lower consumer spending and multiple
layers of taxation, they conceded that the multiplicity of local restrictions
could cut short plans to operate 24×7. “The ultimate decision to adopt or
modify the law lies with the respective states and each one has a different
policy or act,“ said Rahul Singh, chief executive of Beer Café, which operates
35 stores across 10 cities. “A lot ne eds to be done to ensure this turns into a
reality and that may be a challenge. A res taurant serving liquor, or even
otherwise, needs multiple licences to operate.“

3. Contd…
The Model Shops and Establishments (Regulation of Employment and
Conditions of Service) Bill, which the Cabinet approved on Wednesday,
provides for freedom to operate 365 days in a year and flexible opening
and closing times. The draft bill will now be sent to states and Union
Territories so that they can adopt the draft as it is or modify its
provisions as per their requirements.
“The problem is that every state has its own laws and every law has its
own politics,“ said Zorawar Kalra, promoter of Masala Library and Farzi
Cafe. The decision will “benefit multiple stakeholders including
consumers, restaurant companies and the government, besides
immediate access to extra jobs. We do hope things work out,“ he said.

4. Contd…
All restaurants need an `eating house licence' given by local police licensing
departments covered under registration regulations, which clearly state that
restaurants can't be kept open between 1 am and 5 am. This will have to be
changed. Each state has an excise and taxation department that covers
restaurants with a licence to serve liquor. However, the excise rules specify
that liquor can't be served between 1am and 11am.
There's also a health trade licence that will have to be issued by the local
municipal authority to operate 24 hours a day .
Gaurav Goenka, managing director of Mumbai-based diversified hospitality
and real estate entity Mirah Group, which owns United Sports Bar and Grill,
Cafe Mangii, Falafel and Khandani Rajdhani, said: “There is a fine print which
has to be examined. State authorities will have to work in tandem to make
this work and that could be the challenge. There will be teething troubles,
though in the long run we expect that things will be smooth.“

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