Even normal bars making daily sales of Rs.1.5 to Rs.2 lakh; profit margin of bar business and challenges

THIRUVANANTHAPURAM: Efforts to reduce the availability of alcohol in the state on one side. Measures to increase the number of bars on the other. 801 bars at present. 14 new applications in various districts under scrutiny.

97 bar licenses were issued after the second Pinarayi government came to power. UDF had shut down all but 29 five-star hotels in 2016 before leaving. Four-star bars among the closed bars were allowed to function as per the decision of the left government. 200 new licenses were also granted. By the end of the Left government's term in 2021, the number of bars reached 671. Now there are 801 bars, including those licensed by raising the classification and new ones.

High profit business

The constant argument of the bar owners is that there is no loss-making business like the bar business. However, even a normal bar has an average daily sales of Rs.1.5 to Rs.2 lakh. Depending on the quality of the bar and the speciality of the location, it can go up to five or six lakhs. 15 to 20 percent of the sale goes to the owner's pocket after all expenses including the share of license fee.

Common man's favourite Jawan rum is priced at Rs 640 per litre at Bevco Shop. Jawan rum is sold at bars at peg rate. Rs 65 per peg is the minimum rate. One litre is 16.5 pegs. A litre of Jawan rum is sold for Rs 1072.50. Profit from this is Rs.432. Depending on the quality of the bars, the peg rate can increase and so can the profit. A typical bar sells 750 to 850 pegs of Jawan rum a day. As the price of liquor increases, the peg rate and profit will rise.

Burden of donation

Owners get amazing profits but donation is a burden. Bar owners have to donate huge sums of money to major political parties during elections. The amount determined will be collected from each bar and handed over by the owners association. Earlier it was up to 25,000, 50,000, now it has become lakhs. Contribution to local leaders is on top of this.