Eating out to burn a hole in your pockets: Hoteliers may hike prices by 20% | Mumbai news - Hindustan Times
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Eating out to burn a hole in your pockets: Hoteliers may hike prices by 20%

By, Mumbai
Nov 09, 2021 08:29 PM IST

Massive hike in commercial Liquefied Petroleum Gas (LPG) cylinders, increased cost of vegetable and pulses, coupled with high labour cost have all added to the burden of running the establishments, the hoteliers say. The Indian Hotels and Restaurant Association (AHAR), a leading association of hoteliers said the hike in prices is almost inevitable.

Eating out may get costlier as restaurant owners are all set to hike prices of eatables by at least 20% in the next few days.

Eating out may get costlier as restaurant owners and hoteliers are all set to hike prices of eatables by at least 20% in the next few days. (HT PHOTO)
Eating out may get costlier as restaurant owners and hoteliers are all set to hike prices of eatables by at least 20% in the next few days. (HT PHOTO)

Massive hike in commercial Liquefied Petroleum Gas (LPG) cylinders, increased cost of vegetable and pulses, coupled with high labour cost have all added to the burden of running the establishments, the hoteliers say.

The Indian Hotels and Restaurant Association (AHAR), a leading association of hoteliers said the hike is almost inevitable. “After almost 18 months of lockdown, we are running our businesses with very thin margins. However, the recent LPG cylinder hike of 266 has impacted us. An average restaurant needs a minimum of four LPG cylinders daily and it is impossible to sustain with such increase in prices,” said AHAR president Shivanand Shetty.

According to The Indian Hotels and Restaurant Association (AHAR), the basic price of a dosa price will be 90 onwards, which is currently being priced at 75. Similarly, dal fry which now costs 130 will be charged at 160 and mixed vegetable dish is priced at 160 will be cost 190. The pav bhaji being sold at 120 will cost 145 onwards, after the hike.

The oil companies announced the hike of commercial LPG cylinders by 226 last week. This means the 19kg cylinder would now cost 1,950 from 1,724. It was costed 1498 in July.

Narayan Poojari, managing director, Shiv Sagar chain of hotels and partner in Mahesh Lunch Home, Fort, said, “Our establishment cost has gone through the roof and it is unfeasible to conduct business with the current rates. There is no way but to go for a hike,” said Poojari.

The labour shortage has also added to the establishment cost. The hotel sector has been facing a massive labour shortage due to which they are forced to shell out more salaries to the existing staff.

Satish Nayak, proprietor, Udupi Shri Krishna Boarding, which is one of the oldest restaurants in Mumbai, said they now operated with just half the staff (22 out of 44) post lockdown. “We have been forced to pay more to our existing staff to avoid poaching by other establishments. This has hugely added to our costs,” said Satish Nayak, proprietor.

Some of the hotels, however, have decided to bear the additional burden for some more time. Mirah Hospitality, which runs 14 hotels including Rajdhani, Hitchki and Bayroute said though they are burdened with huge costs, they will not hike the prices. “After months of lockdown, we are now picking up and we are in no mood to increase our rates at this juncture. There is no doubt, the LPG cylinder hike has hit us severely, but then we cannot hike, as it could also translate to the loss of consumers. We will study this situation till the end of this year and then take a call on a price hike,” said Aji Nair, chief operating officer (food and beverages division), Mirah Hospitality.

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