Kolkata Restaurants Grapple with Soaring Costs as Commercial LPG Prices Spike
Kolkata's culinary scene is bracing for significant price adjustments following a substantial increase in commercial LPG costs. On Wednesday, authorities announced a rise of Rs 218 per cylinder, marking the latest escalation in fuel expenses that has been steadily climbing since late February.
Mounting Pressure on Restaurant Operations
Since the outbreak of conflict in West Asia on February 28, commercial LPG prices have surged by a total of Rs 364, pushing the price of a standard 19 kg cylinder to Rs 2,208. This dramatic increase comes at a time when restaurants are already facing rising costs across multiple fronts.
"The price rise has led to a spike in our expenses," explained Sudesh Poddar, president of the Hotel and Restaurants Association of Eastern India (HRAEI). "While we have moved 70% of our cooking to electrical gadgets, we are not sure if it will be cheaper than LPG. The LPG price increase will lead to a further cost escalation."
Poddar noted that over the last five weeks, prices of essential food items have seen sharp increases, including:
- Edible oil
- Chicken
- Various spices
- Paneer
- Fish
Restaurant Responses Vary Across Kolkata
The city's dining establishments are responding differently to the mounting financial pressure. Oasis on Park Street plans to implement a 5% menu price increase by mid-April, according to owner Pratap Daryanani, who cited "a price rise of ingredients across the board."
Trincas has already introduced a modest price adjustment, while several other prominent establishments are taking a more cautious approach. Specialty Restaurants, which operates popular chains including Oh! Calcutta, Café Mezzuna, Mainland China, Hoppipola and Flame & Grill, has decided against immediate price increases.
"We will hold on to our price till we can without compromising on quality," stated Anjan Chatterjee, founder and chairperson of Specialty Restaurants. "Unless there's a further increase, we will not raise prices."
Other restaurants are actively considering their options. Bar-B-Q and One Step Up are evaluating potential price adjustments, with owner Rajiv Kothari noting, "We are not hiking rates immediately but will take a call soon." Similarly, Oudh 1590 is contemplating a price revision, according to owner and co-founder Shiladitya Chaudhury.
Industry-Wide Impact and Historical Context
The National Restaurants Association of India (NRAI), representing over 500,000 restaurants nationwide, acknowledges the challenging situation. Sagar Daryani, president of NRAI, drew parallels to previous economic pressures: "When fuel prices went up in the wake of the Ukraine-Russia war, restaurants revised prices by 5%-8%. This time, too, there will be a price revision. But that may not happen immediately."
Several other establishments are already implementing or seriously considering price adjustments. Arasalan has effected a price increase, while Amber is contemplating similar action. Sanjay Khullar, owner of Amber, highlighted the comprehensive nature of the cost increases: "From mutton and chicken to cream and paneer, all prices have shot up. A price rise now seems inevitable though we are still assessing the costs."
The owner of Wow! Momo, Wow! China, Wow! Chicken and Wow! Kulfi outlets suggested that improved commercial LPG supply could potentially mitigate some of the pricing pressure, though such relief appears unlikely in the immediate future.
As Kolkata's restaurant industry navigates these challenging economic conditions, consumers should prepare for potential menu price adjustments across the city's diverse dining landscape. The cumulative effect of rising LPG costs combined with increased food ingredient prices creates a perfect storm that many establishments may find difficult to weather without passing some costs to customers.
