Bengaluru hoteliers have issued a stark warning that food prices are set to rise sharply due to a 60% increase in minimum wages and surging fuel costs. The price of a plate of idli could climb to ₹80, while a masala dosa may cost ₹150, as establishments struggle to absorb rising operational expenses.
Minimum Wage Hike Impact
The recent 60% minimum wage increase has placed immense pressure on the hospitality sector. Hoteliers argue that labor costs constitute a significant portion of their expenses, and the hike leaves them with no choice but to pass on the burden to customers. Small, family-run businesses are particularly affected, as they cannot afford the wage rise without cutting staff or raising menu prices.
Fuel Price Surge
Compounding the problem is the surge in fuel prices. Petrol in Bengaluru now costs ₹110 per litre, while commercial LPG prices have risen from ₹1,884 to ₹3,152 per cylinder. These increases have made transportation and cooking significantly more expensive, further squeezing profit margins.
Menu-Wide Price Adjustments
Price hikes are expected across the menu. A vegetarian meal, currently priced between ₹150 and ₹200, may rise to ₹250–300. Biryani could jump from ₹300–350 to nearly ₹500. The increases reflect the cumulative impact of wage and fuel cost pressures.
Industry Appeals Rejected
Hoteliers had appealed to the government for a separate classification for wage revisions, arguing that the hospitality industry operates on thin margins. However, their requests were rejected, leaving them with no alternative but to implement price increases. The industry warns that further hikes may be necessary if costs continue to rise.
