News Karnataka
Thursday, April 18 2024

Financial Strain Forces City Hotels to Raise Food Prices by 10%

Amidst an economic climate characterized by surging prices of food commodities, gas, rent, and electricity, hotels and restaurants in the city have resorted to hiking their food and beverage prices by 10%. While some establishments typically implement price adjustments in September, this year's financial challenges compelled them to do so earlier than usual.
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Mangaluru: Hotels and restaurants in the city are raising food and beverage prices by 10% due to surging costs of food commodities, gas, rent, and electricity. Some establishments usually implement price hikes in September, but this year they were compelled to do so early due to financial difficulties in sustaining their businesses.

Kudpi Jagadeesh Shenoy, president of the Dakshina Kannada Hotel Owners Association, stated that the decision to raise prices by 10% from August 1 was driven by the double increase in milk prices within a year, along with steep rises in the prices of other commodities. Additionally, LPG and electricity rates have been hiked, and hotels need to provide pay increments to employees.

While some hoteliers were hesitant to implement revised menu prices, they acknowledged that it was inevitable. The rising prices of commonly ordered items, such as tur and urad dal, pose a significant challenge. Many establishments are planning an 8% to 10% price hike to cope with the increased costs.

Owners of well-established hotels expressed concern over the reduced profit margin, which has decreased from 10% to 12% to a meagre 5%. Even hotels serving non-vegetarian food are raising their prices due to unprecedented increases in edible oil, LPG commercial gas, and other essential materials used in the industry.

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