Samagra News: Hotels, restaurants and catering establishments in Mangaluru are facing mounting pressure from rising food ingredient prices, milk costs, fuel expenses and other operational overheads.
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With the prices of essential commodities such as rice, pulses and vegetables continuing to increase, food businesses are considering revising their menu rates to manage expenses. The ₹8 per litre increase in Nandini milk prices, which came into effect on November 1, has added to the burden, prompting hotel industry representatives to discuss possible price revisions. Overall food prices could increase by 5-10%, depending on the establishment and its operating costs.
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The Dakshina Kannada Hotels and Restaurants Association (DKHRA) is expected to discuss the impact of rising expenses, with some establishments considering menu price increases of around 10%. However, there is unlikely to be a uniform revision across hotels, as individual establishments will decide on price changes based on their existing rates and cost structures.
DKHRA president Kudpi Jagadish Shenoy said the association would discuss the impact of increasing input costs at a meeting. He indicated that hotels may consider raising menu prices by around 10% to offset the additional expenses.
According to Shenoy, the increase in Nandini milk prices, along with rising grocery costs, has added to the financial pressure on hotel businesses. The association had also discussed a possible menu price revision during the previous round of milk price increases, but the proposal was not implemented at the time.
DKHRA secretary Devi Prasad said there would be no uniform price revision across establishments. Individual hotels would decide whether to increase their rates based on their operating expenses and existing menu prices.
