Residents of major cities such as Bangalore, Mumbai, and Pune may have to spend more money on dining out or ordering food online before the Diwali festival. Restaurant owners are preparing to increase the cost of menu items by 10–15 percent.
Cost pressure on the restaurant business has intensified due to rising prices for milk and yogurt, the increased cost of commercial LPG, general food inflation, and rising employee wages. According to the Hotel Association, restaurants in Karnataka also plan to raise prices on food and beverages.
If this increase is implemented, prices in restaurants will rise for the second time this year, which could further increase people's expenses during the holiday season.
During the holidays, people prefer to spend time outside the home with family and friends, and the popularity of ordering food online for home parties and hosting guests is also growing. Consequently, any price increase in restaurant menus will directly affect customers' budgets.
Establishment owners claim that the business's operating costs have been constantly rising recently. The increase in the price of necessary ingredients, such as milk and yogurt, has complicated the preparation of many dishes. Furthermore, the increase in the cost of commercial LPG has led to higher kitchen expenses, and labor costs and other operating costs have also increased.
In this situation, restaurant managers have only one option—to pass some of the increased costs on to consumers. If prices rise by 10–15 percent, it will affect not only those who dine in the restaurant but also customers using online food delivery services.
