Eating out in Mumbai to get costlier as restaurants plan 10–15% menu price hike

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Eating out in Mumbai could soon become more expensive, with restaurants across the city likely to increase menu prices by 10% to 15% in the coming weeks amid rising operating costs, the Indian Hotel and Restaurant Association (AHAR) has announced.

The association, which represents the hospitality industry in Maharashtra, said restaurants have been absorbing increasing expenses for a considerable period but are now finding it difficult to sustain operations without passing on some of the additional costs to customers.

According to AHAR, a sharp rise in commercial LPG and piped gas prices, along with increasing costs of food ingredients, dairy products, vegetables, rentals, manpower and transportation, has placed significant financial pressure on restaurant businesses.

“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. A 10% to 15% revision in menu prices has become necessary for the survival and viability of the industry,” AHAR president Vijay K. Shetty said.

The association identified commercial cooking gas as one of the biggest contributors to rising expenses, stating that higher LPG and piped gas prices have significantly increased the cost of daily kitchen operations.

Restaurants have also witnessed considerable increases in the prices of milk, dairy products, vegetables, pulses, onions, edible oils and other essential ingredients. Frequent fluctuations in commodity prices have further complicated procurement and cost management, AHAR said.

Apart from food and fuel expenses, rising commercial rentals across several parts of Mumbai have added to the financial burden on restaurants and hotels. Establishments are also facing higher labour costs as they increase wages and employee benefits to retain trained and experienced staff amid the rising cost of living.

Transportation expenses, fuel prices and supply-chain charges have further increased the cost of sourcing raw materials. The association said additional expenditure on maintenance, equipment, utilities, packaging, technology and regulatory compliance has continued to narrow profit margins in the hospitality sector.

Defending the proposed revision, Mr. Shetty said the move was necessary to maintain service standards rather than 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,” he said.

AHAR clarified that the revised prices would not be implemented uniformly across restaurants.