From The Economic Times · Ratna Bhushan · · 1m
Eateries cut corners as high costs and hygiene crackdowns take toll
Restaurants slash portions, raise prices amid food inflation and stricter hygiene rules.
In brief
Restaurants slash portions, raise prices amid food inflation and stricter hygiene rules. Restaurants in India are reducing meal sizes, increasing prices by 4-15% to offset rising food costs and new hygiene regulations. Originally reported by The Economic Times.
Restaurants cut high-cost menu items
Restaurants pause high-priced options to manage rising food costs.
“We have paused serving some higher-priced options in our biryani range, which involve high-cost ingredients”
Hygiene compliance costs rise
New food safety rules increase costs for hiring staff, testing, and quality ingredients.
“There are a lot of compliances by regulators now that impact everyone-from small operators to large chains”
Price hikes start in October
Restaurants plan 4-5% price increases starting October to share inflation costs.
“We have paused serving some higher-priced options in our biryani range, which involve high-cost ingredients”
Hygiene crackdowns add costs
Maharashtra FDA and FSSAI inspections raise costs for food safety and sanitation.
“For example, we are replacing oil used for deep frying quicker than even the permissible standards”
Food inflation hits 7.74%
India's retail food inflation rose to 7.74% in September due to rising vegetable and staple prices.
“India's retail food inflation shot up to 7.74% in September”
Restaurants raise prices by 10-15%
Mumbai restaurants plan 10-15% price hikes to cover rising food and operational costs.
“Restaurants in Mumbai are gearing to increase prices by 10-15%”
The key point
Restaurants in India are reducing meal sizes, increasing prices by 4-15% to offset rising food costs and new hygiene regulations.
