In the wake of a significant hike in milk and coffee powder prices, hotels across Bengaluru have raised the cost of their beloved filter coffee and tea by Rs 3-5. A cup of tea that once cost Rs 15 now costs Rs 18, and in some places, the price has jumped from Rs 20 to Rs 25.

Hoteliers explained that the price increase was inevitable due to rising costs of essential ingredients. Coffee powder prices have surged sharply in less than three months, with certain varieties now priced between Rs 1,500 and Rs 2,000 per kg. Even commonly used brands like Arabica have seen a rise from Rs 580 to Rs 730 per kg. Additionally, the price of milk has increased by Rs 4 per litre, and rising electricity bills have further burdened restaurant owners.

“The hike in prices has been a tough blow. We had been absorbing the losses for a while, but with milk prices rising, we had no choice but to pass on the costs to customers,” said Swaminand Y from IDC.

Some hotel owners expressed that the increasing prices have affected customer traffic. “People are cutting back on their coffee breaks due to the higher prices,” added Abhimanyu from Hunkal Coffee.

Despite the price hikes, customers are expressing concerns, questioning the justification for the increases, especially when only a small amount of milk is used in each cup. Customers mentioned that they may reduce their daily coffee consumption as prices continue to climb, also noting that both instant and filter coffee powder prices have risen by at least Rs 50.