‘Rs 150 for dosa, Rs 500 for biryani’: Bengaluru eateries warn of hike in food prices
The Karnataka government’s decision to increase minimum wages for workers by 60 per cent, coupled with the continuous rise in fuel and cooking gas prices, is expected to have a major impact on Bengaluru’s hotel and restaurant industry
Hotel owners in Bengaluru have warned that food prices in restaurants could go up by as much as 60 per cent due to the hike in minimum wages and rising LPG cylinder prices.
The Karnataka government’s decision to increase minimum wages for workers by 60 per cent, coupled with the continuous rise in fuel and cooking gas prices, is expected to have a major impact on Bengaluru’s hotel and restaurant industry.
What hotels association said
Hotel owners in the city have cautioned that customers may soon have to bear a heavy financial burden as employee salaries and operational expenses continue to rise sharply. There are indications that food prices at major hotels and restaurants across the city could increase significantly in the coming days.
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According to the president of the Karnataka State Hotels Association (KSHA), GK Shetty, the 60 per cent increase in minimum wages will make a hike in menu prices unavoidable.
A plate of idli, which currently costs around Rs 50, could rise to Rs 80, while the price of a masala dosa, now priced between Rs 80 and Rs 90, may shoot up to nearly Rs 150. Similarly, the cost of a vegetarian meal, currently priced between Rs 150 and Rs 200, may increase to Rs 250-300, and biryani prices, now around Rs 300-350, could touch nearly Rs 500, Shetty said.
Impact of LPG cylinder hike
Over the past few months, the price of commercial LPG cylinders has increased from Rs 1,884 to Rs 3,152. Along with this, the rise in grocery prices, electricity tariffs, and garbage cess has already pushed the hotel industry into financial distress. Small and family-run hotels are finding it difficult to absorb the additional expenses, and some owners have been forced to reduce staff. Although hotel owners had appealed to the government to treat the hospitality sector separately while implementing the revised minimum wage rules, their request did not receive any relief. As a result, hoteliers say that increasing prices is now the only option left to offset rising transport and operational costs.
(This article was originally published in The Federal Karnataka)