Restaurants are turning to fish as an alternative to chicken dishes, but even that has failed to draw customers.
"Non-vegetarian items are not available, except for fish. So, the number of customers coming is very less," said Ranjit Singh, a customer.
The hospitality has taken a huge hit, with hoteliers lamenting their inability to meet running expenses.
"Now, I am open for fish, to offer something to clients, and fish sale is very low. So, I cannot afford rent, electricity tax, water tax and sales tax," said Megha Singh, a hotelier.
On Friday, the Central Government said there were no suspected human cases of bird flu, and added that the situation in Chingmeirong village in Manipur, where the outbreak of the bird flu was confirmed on July 25, was completely under control.
There were reports earlier that four people in the area who had come in contact with the infected birds were suffering from fever or Acute Respiratory Tract Infection (ARI).
The samples of those people sent for medical examination to National Institute of Virology in Pune and National Institute of Communicable Diseases in Delhi were also found negative for Avian Influenza virus.
Close to two lakh birds have been culled in the State, and the Centre has already alerted neighbouring Mizoram to check illegal smuggling of hens from across Myanmar where incidents of bird flu outbreak have occurred very often.