Rising costs forcing hotel owners to increase price of food

Bengaluru: In response to the surging costs of essential commodities, the Bruhat Bangalore Hotels’ Association in Bengaluru is considering an imminent increase in food prices across restaurants and fast food outlets under its purview. The association is deliberating a potential hike of 10 to 15 percent, with a final decision scheduled to be made during a forthcoming meeting organised on July 25.

The hotel industry finds itself compelled to adjust prices due to mounting expenses, particularly stemming from the escalating prices of electricity, commodities, and various ingredients. Staples have witnessed a substantial surge in recent months, leaving hoteliers with little choice but to revisit their rate cards.

The mounting costs have necessitated a minimum 10 percent upward adjustment in food prices across hotels to sustain their operations within the competitive market. Recently, several hotel owners have already implemented price hikes in response to these challenges.

Moreover, the Karnataka Milk Federation (KMF) has planned a meeting with Chief Minister Siddaramaiah, where they will appeal for a Rs. 5 per litre increase in the price of Nandini milk.

The increase in prices of pulses, vegetables, spices, and other commodities has profoundly affected profit margins of hoteliers. Furthermore, the possible hike in milk prices, exacerbates the challenges faced by hoteliers.

As Bengaluru's hotel industry grapples with the formidable challenge of rising costs, stakeholders are navigating a delicate path towards maintaining operational viability while striving to deliver services. The outcome of the meeting on July 25 will likely shape the future pricing strategies of the hotels.