The much loved food culture in Bengaluru might soon get a lot costlier as the hotel and restaurant association has warned of menu price hikes in the city by up to 60% in the next few months. While some restaurants have already marked up the prices of their Masala Dosas, Idlis, Biryani and full meals, the costs of running businesses are increasing, they say, and they are preparing for a big hike in their prices. A shortfall in payment for higher minimum wages, on top of escalating fuel prices and the raw material prices will soon translate into the actual cost of bills for millions of visitors to the city’s restaurants every day, according to the Karnataka State Hotels’ Association (KSHA).
What Is The Problem Here?
The most significant problem according to restaurant owners is the proposed increase in the minimum wage in Karnataka‘s hospitality industry. The revised wages for unskilled workers in Bengaluru may be Rs 23,000 or more per month, according to reports. But hotel operators say the cost increases significantly when the benefits to their employees like provident fund, ESI, food, accommodation and uniforms are factored in. According to media reports, KSHA President G K Shetty indicated that the total expenses incurred by a single worker may go up to Rs 36,000 per month, which would make it difficult for many businesses to keep up with the expenses without having to increase their menu prices. In addition, the increasing prices of commodities like Sona masuri and jeera rice, and fuel prices are further pushing the bottom line of shops that are thin profit margin businesses.
Check Prices Of Your Favourite Dishes
According To Media Reports, the association estimates that some of the most popular dishes in Bengaluru may witness a dramatic spike in prices. A Masala Dosa that is in the market for Rs 80 now can soon go up to Rs 150 and a plate of Idli that sells for Rs 50 now or so can soon be at Rs 80 or higher. A Vegetarian meal costing Rs 150 to 200 can be as high as Rs 250-300, while a chicken biryani that costs Rs 300-350 now can go up to Rs 500. While the increases are not set in stone, hoteliers are adamant that the process has become unavoidable else businesses would not be able to withstand the rising financial pressures.
So, No Cheap Masala Dosa Or Biriyani?
The effect may be felt more than just at the restaurant. The hotel and restaurant industry in Karnataka caters to almost 60,000 units, most of which are small messes/affordable family run restaurants, serving low cost meals to lakhs of Bengalureans everyday. Industry experts have been cautioning that otherwise, business may have to consider job cuts and staff reductions. Bengaluru Hotels’ Association president P C Rao noted that the final pricing calls are still to be made but noted that price hikes now seem ‘inevitable’. The message to Bengaluru’s foodies is loud and clear: the days of a cheap dosa and an affordable biryani may soon be over.
