Bengaluru hoteliers struggle with spiralling cost of milk, ghee

'Spiralling prices are impacting our profit margin', the owner of Krishna Vaibhava restaurants said

Spiking milk and ghee prices coupled with shortage of butter have burdened Bengaluru hoteliers, who are not hiking prices of snacks and meals just yet.

Butter and ghee are important ingredients in Indian dishes such as pav bhaji, dosa, upma, and several sweets. “Post Covid, the government has increased the price of several products. Although the prices are affecting the business, we do not plan on increasing the prices of the food items immediately,” said Ravi Kumar, owner of Nammoora Thindi.

He said the change in food prices also depends on the hotel’s area of operation and target audience.

Shripathi Rao, the owner of Bigg Bite and Krishna Vaibhava restaurants, said surging prices have dented profits.

“Spiralling prices are impacting our profit margin. The monthly rent, salary and bills remain the same and we are unable to meet them. Hiking prices of food items is our last resort,” Rao said.

Vishwanath, supervisor at New Shanthi Sagar, said ghee and butter are compulsory ingredients in Indian cuisine. On average, 10 kg of butter and two litres of ghee are a daily requirement here.

At Paakashala, the management is planning to increase the prices of products by 10 to 15 per cent in a month, said Surendra Hegde, senior vice-president. He said the impact of Covid along with increase in the price of milk are the main reasons for the rise in butter and ghee prices.

“The diminished supply of milk across the state has given rise to today’s situation. The government has revoked discounts on gas cylinders as well. Ghee and butter are key ingredients for most of the food prepared in our restaurants,” he said.