Bengaluru: Eating out in Karnataka could soon become significantly more expensive, with hotel and restaurant owners warning of steep price hikes for popular dishes such as idli, dosa, meals and biryani following the state government’s revised minimum wage notification.

The Karnataka State Hotels Association has expressed serious concerns over the impact of the revised wage structure on the hospitality sector, stating that restaurants may be forced to increase menu prices sharply to manage rising operational expenses.

According to association president G K Shetty, the average increase in minimum wages is close to 60 per cent compared to existing levels, placing a major financial burden on hotels, eateries and small family-run establishments across the state.

Idli, dosa and biryani prices may rise sharply

The association has warned that consumers could soon see substantial increases in food prices across Bengaluru and other parts of Karnataka.

As per estimates shared by the hotel body, the price of a plate of idli could rise from around Rs 50 to nearly Rs 80. A masala dosa, currently priced between Rs 80 and Rs 90 in many restaurants, may increase to nearly Rs 150.

Vegetarian meals that presently cost between Rs 150 and Rs 200 could go up to Rs 250–300, while biryani dishes in Bengaluru may rise from Rs 300–350 to nearly Rs 500.

“With such increases, eating out will become more expensive for ordinary citizens, impacting the hotel industry,” Shetty said while reacting to the government’s revised wage notification.

Restaurant owners fear that rising prices could affect customer footfall, especially among middle-class families and daily diners who rely on affordable eateries.

Karnataka revises minimum wages

The Karnataka government recently revised minimum wages for workers in both organised and unorganised sectors across the state.

Under the new wage structure, unskilled workers in the Greater Bengaluru Area must now receive a minimum salary of Rs 23,376 per month. Highly skilled workers in the city will be entitled to wages of Rs 31,114 per month.

Outside Bengaluru, the minimum wages for unskilled workers have been fixed between Rs 19,300 and Rs 21,251, depending on the region and category of work.

The revised wages are aimed at improving employee welfare and addressing the rising cost of living. However, hotel industry representatives argue that the sudden increase could significantly affect businesses already struggling with higher operating costs.

Hospitality sector cites mounting expenses

The Karnataka State Hotels Association stated that the wage revision comes at a time when the hospitality sector is already facing rising fuel, utility and raw material costs.

The association pointed out that the cost of commercial LPG cylinders has reportedly increased from Rs 1,884 to Rs 3,152 within a short period. In addition, hotels are also dealing with rising grocery prices, higher electricity tariffs and increased garbage cess charges.

Industry representatives say the combined impact of these factors is making it increasingly difficult for restaurants to maintain existing menu prices.

“Hotels are not like other sectors. We provide food, lodging and other facilities to employees. The government should have considered the unique nature of the hospitality industry before imposing such a steep wage hike,” Shetty said.

Many small restaurant owners have expressed concern that they may not be able to absorb the additional financial burden without passing costs on to customers.

Industry seeks separate classification

The association said it had earlier requested the Karnataka government to classify the hospitality industry separately while implementing revised wages, arguing that the sector operates under different economic conditions compared to other businesses.

However, the request was reportedly not accepted by the government.

Hotel owners have now appealed to the state administration to reconsider the implementation or provide relief measures to reduce pressure on the industry.

Experts believe the situation could have broader implications for Bengaluru’s food and restaurant culture, which is known for offering diverse dining options ranging from affordable tiffin centres to premium restaurants.

Consumers may feel inflationary pressure

Economists and industry analysts note that rising food prices in restaurants could add to the inflationary pressure already affecting urban households.

Frequent diners, office-goers and students are likely to feel the impact most, especially in Bengaluru where eating out forms a significant part of urban lifestyle and work culture.

At the same time, labour rights advocates argue that improved wages are necessary to ensure better living standards for workers employed in demanding service-sector jobs.

The debate has now placed the Karnataka government in a difficult position as it attempts to balance employee welfare with concerns raised by the hospitality industry.

Whether the government revisits the wage implementation remains to be seen, but restaurant owners say customers should prepare for higher food bills in the coming months.