How are road side food kiosks coping up with demonetization?
What happens when something takes you by complete surprise in an unpleasant way? It most likely pinches you very hard. This aptly describes the pain that millions of people across the country are currently experiencing due to the ongoing demonetization drive.
It has spared none, including the roadside kiosks that have been as much hard hit by severe cash crunch situation. They are more or less facing the same problem as big restaurants are: the problem of low footfalls.
With people facing shortfall in cash due to low supply of cash in ATM’s and banks, customers have become a rare sight at roadside kiosks. The most hard-hit are unbranded kiosks that unlike branded ones don’t have huge financial reserves to cope with the downturn in their business.
They have been left completely clueless on how to deal with the current situation that has completely distributed its regular revenue cycle.
Adding to their misery further is the fact that most of them don’t own swiping machines and have been forced to pay from their own pocket to procure it for accepting digital payments.
Several small kiosks are also taking help of e-wallet companies like Paytm to smoothen their digital payment process. Paytm recently launched in- app pos (point of sales) to help small and medium merchants to enable them to make payment via debit & credit cards.
Coming to big and branded kiosks, then their businesses have been just as hard hit post- demonetization. After all, low customer footfall is squeezing their financial reserves and putting their business at risk in long run.
Their better adaptability to digital payment did save them from bushes. But this was only to certain extent. That’s because their majority of customers constitute of cash customers, which is also the case with small kiosks.
The cash crunch situation is also making difficult for kiosks to make payments to their vendors and contractors. This has only further added to their woes.
Overall, the situation is pretty tough, with almost entire kiosk industry asking the same question that everyone across the country are asking. When will these painful days come to end?
If the poor management by government and ensuing chaos is anything to go by, then the answer is that these pain ridden days won’t end anytime soon. But on an optimistic note, lets us all hope that it does end eventually.