Hotels and restaurants in Mangaluru have implemented a 10 percent increase in food and beverage prices. This decision comes in response to the rising costs of food commodities, gas, rent, and electricity. Moreover, other establishments are also considering following suit with price adjustments in the coming days.
Some hotels said that they usually hike prices on menus in September, but this year they were forced to do it early, since it is difficult to sustain their business.
According to Kudpi Jagadeesh Shenoy, a hotelier and president of the Dakshina Kannada Hotel Owners Association, the association has made a decision to increase food and beverage prices by 10 percent, starting from August 1st.
“The milk price has been hiked twice within a year, and increased by INR 6. Apart from that, the price of every commodity has seen a steep rise in the past year. Adding to it, LPG and electricity rates have been hiked too. In addition, hotels need to give pay increments to their employees. Considering all this, a 10 percent hike has been done,” said Shenoy.
Despite the fear of losing customers, only a few hoteliers have currently implemented the revised menu prices. However, they emphasized that it is inevitable and more establishments are likely to follow suit in the near future.
“Our hotel was following a wait-and-watch policy, and hoped that prices of some items that are commonly ordered will come down. However, it has not. We’re going for an 8 percent to 10 percent hike starting next week,” said Vasant Kamath of Anmol Family Veg Restaurant, Bejai. “The prices of all commodities are expected to go up. For example, tur and urad dal, widely used in hotels, have seen an increase in price by INR 50 per kg. We will not be able to sustain our business unless we hike the price,” stressed Kamath.
Prakash Udupa, the proprietor of Indra Bhavan and Vishwa Bhavan hotels, both of which have a history spanning more than seven decades, confirmed that they had raised the prices of their items back in April.
“I cannot imagine hiking it again, though the profit margin is less. In April, we increased the prices of items by a few rupees. We may consider hiking tea or coffee prices in the coming days, since the price of milk, as well as tea or coffee powder has increased,” he added.
The hoteliers emphasized that previously, the profit margin stood at approximately 10 percent to 12 percent, but it has now diminished to 5 percent.
Hotels offering non-vegetarian food have also chosen to increase their prices, attributing the decision to the extraordinary surge in the costs of edible oils, commercial LPG gas, and other essential materials used in the industry.
