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Mangaluru: Hotels and restaurants in Mangaluru may raise food prices by 5-10% after the Rs 8 per litre hike in Nandini milk prices from Nov 1, which adds to rising input costs. DK Hotels & Restaurants Association (DKHRA) president Kudpi Jagadish Shenoy said the association would discuss the hike’s impact at a meeting, with hotels likely to consider a menu price increase of around 10%. Rising overheads could also push some establishments into losses, Prasad said, adding that overall food prices may rise by 5-10%, depending on the establishment.
Because of the festive season, but slowing business and declining tourist activity after the festivities were adding pressure, hoteliers had held off on price hikes during Oct.
He said the milk price revision, coupled with rising grocery costs, would impact menu prices. A Ashwatham Hegde, proprietor of Tulunadu Food Catering Services and executive member of the Dakshina Kannada Catering Owners Association, said the milk price hike would substantially affect catering establishments. Hegde said rice prices were changing almost daily, adding uncertainty to food-cost calculations. He said a further increase in fuel and LPG prices would add to the burden.
He added that the association had considered a proposal to increase menu prices during the previous round of milk price revisions but had not implemented it. Catering establishments would have to reassess their costing before deciding how much to increase prices.