Kochiites are feeling the pinch of dining out as popular eateries have resorted to hiking food prices, left with no choice but to meet rising expenses following a huge surge in commercial LPG prices. Some hotels, wary of increasing prices, have further cut items like fish curry meals, Kerala parotta, and soups from their menus to tide over the crisis after the price hike to Rs 993 on May 1.
Statewide Protest by Hotels
In response to the price hike, hotels across the state will close shutters on Wednesday. This follows a call by the Kerala Hotel & Restaurant Association (KHRA), which represents nearly one lakh eateries, hotels, restaurants, bakeries, and canteens across the state. Online food delivery workers have also threatened to stop services on that day.
Price Increases at Popular Restaurants
Popular restaurants like Srikrishna Inn and The Indian Coffee House chains have increased food prices by 5% to 10%, while most mid-level eateries have raised prices of individual items. For example, meals now cost Rs 150 (up from Rs 110-Rs 120) and tea is Rs 15 (previously Rs 13). A manager at Srikrishna Inn said, "The hike follows the rise in price of LPG cylinders by at least 50% (from Rs 1,600 to Rs 3,000) in the last few weeks."
KHRA's Perspective on the Crisis
KHRA state committee president G Jayapal explained, "Most hoteliers have reached a point where they can no longer absorb the cost increase. Ideally, they need to increase food prices by at least 50% to counter the commercial LPG prices. But they are wary of a potential drop in the volume of consumers. Volume is a key factor as the expense to prepare 100 tea or 300 tea is the same, or that for items like masala dosa."
Simultaneous Rise in Milk and Vegetable Prices
What worsened the crisis for the hotel industry is the simultaneous rise in prices of milk and vegetables. While the price of milk rose by Rs 4 per litre, vegetables like beans (Rs 170 per kg now compared to earlier Rs 70 to Rs 100), carrot (Rs 60 as against Rs 40), tomato (Rs 60 as against Rs 20), coriander leaves (Rs 170 per kg as against Rs 80), and curry leaves (Rs 120 per kg as against Rs 30) have seen steep increases.
An executive of Ceylon Bake House said, "We incurred an additional expense of nearly Rs 4,000 to Rs 5,000 per day. However, we haven't effected a price hike. Most of the vegetable items are being served, while select items like fish curry meals have been temporarily cut. We're participating in the statewide protest." Similarly, popular vegetarian restaurants like Green Spoon have cut many items from their menus to counter rising expenses.
Indian Coffee House Chains Adapt
The India Coffee Board Workers' Co-operative Society Ltd, which runs nearly 50 Indian Coffee House chains across the state, convened an emergency board meeting on Tuesday. It was decided to effect a 5% to 10% rise in prices. President Anilkumar S S said, "Earlier we would use 4,000 gas cylinders a month, now we've cut to 1,480 per month. But the hike by Rs 993 meant we're incurring an additional expense of Rs 60 lakh a month. We'll bear half of the expense while passing the other half to the customers just to stay afloat."
In March, the restaurant chain reduced the volume of certain dishes such as dosa and poori, which are served only during key hours like breakfast period. Secretary Shibu G added, "Also, meals won't be provided till the crisis is over as it requires a lot of dishes to be prepared. So instead, we're serving biryani items."
