Bengaluru hotels have raised prices of several food and beverage items by 10-15% after sharp increases in the cost of rice, milk, pulses and other raw materials, putting pressure on customers who rely on affordable restaurants for daily meals.
Tea and coffee prices have increased by an average of Rs 3-5 across hotels, while staples such as idli and dosa have also become more expensive. A dosa that previously cost around Rs 100 is now priced at about Rs 110-115 at some establishments.
PC Rao of the Bruhat Bengaluru Hoteliers Association said the price of rice had increased from Rs 65 per kg to as much as Rs 95 per kg over the past month. He said higher prices for pulses, milk and curd had added to the pressure on restaurants.
“Many restaurants have already raised prices by 10-15%,” Rao said, adding that hotels had little choice but to pass on part of the higher input costs to customers. Hoteliers said the increases were necessary to avoid losses because rice and milk are used extensively in everyday menu items.
Mahesh K, a hotelier from North Bengaluru, said price increases had occurred repeatedly and that restaurants had tried to keep the revisions limited. He attributed the latest pressure to higher raw material costs and referred to the unrest in the Middle East while explaining the sequence of price increases.
Not all establishments have raised prices across their menus. Some hoteliers have increased only tea and coffee prices for now, citing the need to limit the impact on customers. Krishna Raj, a hotelier from Central Bengaluru, said his establishment would assess the situation over the next few days before making further changes.
Other restaurants are waiting for clarity on curd prices from the Karnataka Milk Federation before deciding whether to revise prices for additional items. Santhosh M, a hotelier from North Bengaluru, said operators were also seeking clarity on whether the government would intervene to regulate rice prices.
Customers have questioned whether the increases reflect the actual rise in input costs. Ramesh K, a resident of South Bengaluru, said a Rs 8 increase in the price of a litre of milk should not result in a Rs 5 increase in the price of every cup of tea or coffee.
The differing responses among hotels show that the immediate impact on customers will vary by establishment and menu item. Further price changes will depend on the movement of rice, milk and curd prices, as well as any government intervention on rice prices, according to the hoteliers quoted in the report.
