Modi's demonetisation worked very well for restaurants in Mumbai and Delhi. This is why

The demonetisation of currency notes of Rs 500 and Rs 1,000 have taken the country by storm. Black money holders are looking for ways by which they can get rid of the black money and others who don’t have any black money are facing a cash crunch as this move has started a nationwide crisis.

At this juncture, people hanging out in the pubs across the metro cities of the country aren’t facing much trouble. The proof being the statistics of the payment done by customers in last two days including today at restaurants in Delhi NCR. While people who go hanging out with friends and families tend to pay plastic money, the numbers have gone really up since yesterday.

Business Insider spoke to a few of the prominent restaurateurs in Delhi and Mumbai. Raasta is a Caribbean Lounge known for its cool and relax vibe and has outlets across Mumbai and Delhi. Joy Singh, co-partner, Raasta Delhi & Mumbai told Business Insider, “There will be a dip in overall sales for a few days because of the limited purchasing power but it will smooth out the moment new currency starts flowing. Today 90 percent of our transactions happen through debit and credit cards, so hosting our guests would not be a problem. Even business doesn't seem to be affected much as we pay all our employees and vendors through cheque.”

At Twist, Cyber Hub, a place specializing in oriental cuisine, the ratio of people paying by cards is normally 75% versus 25% in cash. “Since this big announcement of doing away with 500 and 1000 rupee notes has been made, there has been a mode of panic and yes, short term we do expect to see the hospitality sector getting hit. In the longer run, I think people will still go out and eat and enjoy good food and ambience, so this is only a temporary phase. Give it a few days and everything will be back to normal,” said Randip Dhingra, owner of Twist.

Vikrant Batra, Owner Cafe Delhi Heights said, "It is a very bold and courageous move by the government and will definitely affect business. Most of the people who dine in and pay through cash will initially face some inconvenience. Nevertheless we completely support the move as in the longer run it will ensure transparency and will help eradicate black money and corruption which are the biggest obstacles in the growth of our economy."

Keeping in mind the better side of this instant crisis, all restaurateurs are totally in support of this as this is the roadmap to curb corruption.
Sameer Kohli, Co-owner The Hungry Monkey has admitted that they might see a drop in footfall for initial few days due to shortage of circulation of new currency notes in the market. But he is positive about the fact that this will be normal in coming weeks.