Eating out may soon become expensive as the prices of food items served in restaurants across Mysuru city have been hiked citing the increase in prices of essential supplies and raw materials, particularly cooking gas, edible oil, spices, coffee and tea powder and packing materials.
“The prices of food items in restaurants have been increased by 5 per cent and the hike will come into effect from April 10,” according to the Mysuru Hotel Owners’ Association.
The last time the prices were hiked was about two years ago.
Association President C. Narayana Gowda said the hike had become inevitable as the maintenance of hotels has turned expensive with the increase in prices of essential commodities. The price of commercial LPG has been going up regularly and the recent hike was around ₹250 for a refill. The cost of labour too has gone up as hotels had to hike salaries of their staff members. “All these factors forced us to increase the prices of food items by 5 per cent,” he argued.
The prices of spices have gone up by 33 per cent while the rentals and trade licence fees too have been increased. “There was a demand for a 10 per cent hike in food prices but the meeting of the association finally resolved to go for a 5 per cent hike,” Mr. Gowda said.
The hoteliers argued that electricity is costing more besides fuel prices. A commercial LPG refill costs ₹2,308. Almost every day the prices are getting hiked and the hotels had no option but to go for a “nominal hike” to deal with the situation of escalating prices, they said.
Many hoteliers said the hotel industry has been hit by the steep hike in edible oil prices after the Russia-Ukraine war. Before the war, a liter of sunflower refined oil was costing around ₹125-130 but is now ₹190-195 a litre..
The hotel industry suffered for almost two years due to the pandemic and drop in business. When there are signs of revival, the hike in prices of essential commodities has made maintenance of hotels very difficult.
Despite losses during lockdown, some hotels continued to pay wages to the staff as they wanted to ensure staff availability after lockdown. The government did not fully support the hotel industry though it suffered losses. Yet the industry managed to pull through. The hike in prices of food items is unavoidable and the customers have to cooperate to understand the situation, the stakeholders said.
The city has around 350 restaurants and 400 hotels.
