The decision of abolishing notes of Rs 500 and Rs 1,000 currency notes to fight black money menace seems to have hit individual shops and restaurants more than the larger set-ups like malls or big franchise chains. Most retail stores and restaurants have placed a notice at their entrances, declaring their compliance with the government’s order and requesting customers to tender notes of Rs 100 denomination or use e-wallets, credit and debit cards for any purchase. This has led to fall in footfalls.
“We got a lot of customers who were paying with 500 and 1,000 rupee notes but we refused to accept them. As a result business has taken a considerable hit. We haven’t even done one-fourth of our usual business all day,” a manager at a local restaurant in Bangalore was heard complaining.
However, a few stores were undeterred by the government’s move and reported business as usual. “We have generated a business of Rs 2 lakh since the morning and only Rs 1,800 out of that was transacted in cash. Rest was all paid in credit and debit cards. Ninety per cent of our customers carry cards and hence are not facing much trouble.” This was the statement by a franchise owner at Koramangala, Bangalore.
Stand-alone shops, have been affected as most of them don’t have the card swiping machines and neither are they linked with any payment wallets. Meanwhile, PVR reduced their ticket prices following the discontinuation of higher denomination notes. They reduced their ticket prices to Rs 100 and Rs 110 for all our shows till Friday after the Prime Minister’s order. This was done for the convenience of customers who wanted to pay in cash. Despite this , the cinema hall has had lesser crowds on Thursday.
As soon as the announcement was made people started to go to different restaurants , ordering just a cold drink or any small item just to get the change, however most restaurants were not welcoming these type of customers .Many places shut down their operations as soon as 9pm .
Even restaurants who provide home-delivery , are first inquiring if the customer has notes of 100 available or not. This again has led to a fall in business. However, some local groceries are still accepting cash from their regular customers. As they fear that if they don’t accept their payments , how will they manage their day-to-day expenses . Another factor can be that they might lose the loyalty of their customers .
Surely this change will have an impact , but it’s too early to judge the results of it. What it will surely do is make people move to cashless transactions , which will be recorded by the banks and is a great way to go ahead. People won’t stop buying or hanging out so whoever provides the most feasible methods of payments is not going to complain about foot-falls going down.