Mumbai restaurants to raise prices

Restaurants across Mumbai will increase menu prices by ten to fifteen percent in coming weeks, the Indian Hotel and Restaurant Association announced.

Rising costs squeeze restaurant margins

Commercial LPG and piped gas prices, food ingredients, dairy, vegetables, rentals, manpower and transportation costs have all risen sharply, placing financial pressure on restaurants.

AHAR president defends the move

AHAR president Vijay K. Shetty said restaurants have absorbed rising costs as long as possible but continuing to absorb the entire burden is no longer sustainable.

“Restaurants have absorbed the rising costs for as long as possible. But with gas, food, rent, labour and logistics costs increasing simultaneously, continuing to absorb the entire burden is no longer sustainable.”

Gas emerges as biggest cost driver

Commercial cooking gas is identified as one of the biggest contributors to rising expenses, with higher LPG and piped gas prices significantly increasing daily kitchen operation costs.

Food and ingredient prices volatile

Restaurants have witnessed considerable increases in milk, dairy products, vegetables, pulses, onions and edible oils. Frequent commodity price fluctuations have complicated procurement and cost management.

Labour costs and rentals add pressure

Rising commercial rentals across Mumbai and higher labour costs as restaurants increase wages to retain trained staff have added to the financial burden on establishments.

Price rises not for profiteering

Shetty said the move was necessary to maintain service standards and quality of food, hygiene and employment that customers expect, not to increase profits.

“This is not a price increase undertaken for profiteering. It is a necessary adjustment to ensure that restaurants can continue to maintain the quality of food, hygiene, service and employment that our customers expect.”

Increases will vary by establishment

AHAR clarified that revised prices will not be implemented uniformly. Individual restaurants will determine the extent and timing of increases based on their operating costs and business models.