From Idli To Masala Dosa: Karnataka Hotel Prices May Rise 60% After Wage Hike

Hotel food prices across Karnataka may rise by up to 60 per cent after the state government increased minimum wages for workers. Hotel owners warned that items such as idli and masala dosa could become significantly more expensive.

The Hotel Owners Association has said that hotels across Karnataka may soon increase food prices following the state government's decision to raise workers' minimum wages by 60 per cent. According to the association, the sharp rise in labour costs has made a price revision unavoidable for the hotel industry.

The association stated that the price of two idlis, currently available between Rs 30 and Rs 40, could rise to between Rs 60 and Rs 90. Similarly, the price of a masala dosa may go up to Rs 150 in the coming days.

Apart from breakfast items, the prices of snacks, meals and several other dishes are also expected to increase by nearly 60 per cent. The proposed hike is likely to place an additional burden on consumers.

Association president GK Shetty said it would become difficult for hotels to continue operations if prices are not revised in line with the increased wage costs.

The minimum wage for hotel workers has been fixed at Rs 23,000. In addition to salaries, hotel owners are also required to provide PF, ESI, accommodation or room facilities, food, uniforms and other essential benefits for employees.

According to the Hotel Owners Association, the total expenditure on a single worker could rise to nearly Rs 35,000 per month. 

Association representatives said that hotel owners who strictly follow labour laws and provide all mandatory benefits will find it difficult to continue operations without increasing food prices.

Commercial LPG prices have already doubled, adding further pressure on the hotel industry. Hotel owners say they are also struggling with rising petrol and diesel prices, along with an increase in rice costs, making operations increasingly difficult.

In this situation, the latest wage hike has come as another major setback for the industry. The Hotel Owners Association said it had requested the government to revise the dearness allowance annually and implement a wage revision once every five years. However, the association expressed disappointment, stating that the government did not consider its request before increasing the minimum wages.

The Hotel Owners Association has urged the government to review the implementation of the revised minimum wage policy for the hotel industry in order to prevent hardship for small hotel operators and customers.

The association warned that, if the issue is not reconsidered, it could lead to job losses and force both workers and consumers towards the unorganised sector, including small roadside and pavement hotels. According to the association, such a shift could also negatively affect public health and hygiene standards.

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