The ongoing Russia-Ukraine crisis has added to the already multi-year high inflation pressures, as supply concerns have erupted, prices of crude oil and commodities have skyrocketed.
Supply disruptions and prices of edible oils, cooking gas, and coffee powder, among others, have elevated over the past one month’s period, amid geopolitical tensions.
As a result, hotels and restaurants have been demanding a price hike of about 10% for over a month now that the prices of vegetables, oil and other key materials are increasing.
Restaurant Prices Could Surge By the Next Week
Earlier this week, the Bruhat Bangalore Hotels’ Association met and suggested hoteliers to appreciate food prices across the board by as much as 10%.
This is because the hospitality industry has been bearing the brunt of rising oil prices and all of its unwelcoming impact. Price hikes across hotels and restaurants could start as early as next week.
“We have been left with no option but to raise prices. They will probably come into effect over the next one week,” said the President of BBHA, P.C. Rao.
According to the Karnataka Regional Hotels and Restaurants’ Federation’s President, Chandrashekhar Hebbar, hotels and restaurants are considering the price hike, due to the surge in edible oil prices, led by the Ukraine-Russia war and the rise in fuel prices, including cooking gas, which has hit the hotel industry hard, a Hindu report cited.
If Prices Not Hiked, Hotels Could Compromise Food Quality
According to Hebbar, the industry is yet to recover from the losses it suffered during the pandemic. Despite COVID-19, we did not hike prices, but now it is becoming increasingly unviable. If we do not raise prices, it will invariably push us to compromise on the quality and quantity of the food we serve.
In the meeting, the board decided that it would not be viable to compromise the quality and/or quantity of the food served, as it would impact the long-term performance of the industry.
He added, “Hence we have opted for a price hike.”
However, while the association has suggested a 10% price hike across the board, it has left it to individual hoteliers to take a call depending on the situation, added the report.
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