Eating out in Bengaluru to get costlier as hotels decide to hike prices

Although the minimum hike will be 10%, hotel owners can increase prices by up to 20% depending on their expenditure and investments

Diners at Bengaluru's popular Airlines Hotel. Credit: DH File Photo/S K Dinesh

Starting Monday, Bengalureans have to shell out more for their favourite snacks as hotels in the city have decided to hike prices by Rs 5 to Rs 10 citing the continuous hike in price of commercial LPG.

According to the Bruhat Bengaluru Hoteliers Association (BBHA), the price of a 19 kg commercial LPG cylinder has shot up from Rs 1,100 in January 2020 to Rs 2,060, leaving them with no option but to go for a price hike.

Although the minimum hike will be 10 per cent, hotel owners can increase prices by up to 20 per cent depending on their expenditure and investments.

"While big hotels can manage with a minimum hike, small eateries, especially darshinis, will only benefit from a 15 per cent-20 per cent hike as their prices are low," said P C Rao, president of BBHA.

Also Read | LPG prices for commercial cylinders hiked by Rs 266

Stating the last price hike was in 2019, Rao pointed out that prices of foodgrains, vegetables and cooking oil also increased in the past two years. "Other input costs like electricity, building rents, salaries have also increased by about 15 per cent. Thus, this hike is very necessary for the hoteliers. The average increase will be Rs 2-5 per item”, he added.

With the new hike, masala dosa, which used to cost approximately Rs 70 in most restaurants, may now cost Rs 75 to Rs 80, while idli lovers may have to cough up Rs 55-60 for their favourite breakfast.

Prices of coffee and tea will also increase by Rs 3-5 at all the restaurants, including darshinis. Customers might have to pay up to Rs 20 for a cup of coffee, while tea could cost Rs 12-15.

Representatives of many hotel associations in south India are scheduled to meet Union ministers to request them to reduce the GST on commercial LPG cylinders from 18 per cent to 5 per cent, Rao told DH.

State-wide increase

Food items in hotels and restaurants in other parts of the state will also see a hike of 5 per cent to 10 per cent, said Chandrashekhar Hebbar, president of Karnataka Pradesh Hotels and Restaurants Association (KPHRA).

“The price hike will not be too much as we do not want to burden customers. Price of dosa, which costs Rs 50 at the moment, might increase to Rs 55. The new price system will be implemented within the week,” he added.

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