Idli at Rs 80, Dosa at Rs 150? Hoteliers hint at steep price rise as minimum wages & fuel prices increase

Bengaluru, DHNS: The state government’s decision to hike the minimum wages by as much as 60% will impact the hoteliers heavily and as a result, prices of food items might go up drastically, the hoteliers said on Monday. The fuel price hike is also expected to indirectly contribute to the hike. 

The price of one plate of idli may touch Rs 80 and masala dosa might cost Rs 150, they warned.

“The minimum wages have increased by almost 60%. So, prices of food items will have to be increased. A plate of idli which now costs Rs 50 may rise up to Rs 80 and masala dosa which now costs around Rs 80 - Rs 90 may shoot up to Rs 150,” said G K Shetty, President, Karnataka State Hotels Association (KSHA).

Prices of almost every item in the menu might go up, hoteliers warned. Vegetarian meals priced at Rs 150 - Rs 200 may go up to Rs 250 - Rs 300 and biryani dishes could rise from Rs 300-Rs 350 to nearly Rs 500. The rise in minimum wages will burden the industry which has already been hit by continuous increase in LPG prices, Shetty said.

“Operating costs will increase drastically. This will particularly affect the small and family-run establishments that are already struggling with rising expenses. The price of commercial LPG cylinders has been hiked from Rs 1,884 to Rs 3,152 in just a few months. Groceries, power tariffs, garbage cess have all increased,” he said.

The hospitality industry had earlier appealed to the government to classify them separately while implementing minimum wage revisions.

Hoteliers in Bengaluru said that they have no choice but to increase prices of select items. Anish Shashtri, owner of a Darshni, told DH, “It has hit us twice. We have to increase wages of workers and pay for increased transportation costs. We cannot meet the expenses unless we increase prices of dishes, especially the oil-based items like dosa, puri and our meal packages that come with multiple dishes.” he said.

Rohit Shankar, owner of Way Cafe in Kalyan Nagar, said “I run a small eatery serving breakfast, lunch and dinner - mostly rice items. I had two wokers, but I have only one as I had to send the other off because I can’t afford to pay him. I have increased prices of some dishes by Rs 20 per plate”.