Tuesday, 02 January 2024 12:17 GMT

'Biryani May Cost ₹500, Dosa ₹150': Bengaluru Hoteliers Warn Of Food Price Hike Amid Wage Hike, Fuel Price Rise


(MENAFN- Live Mint) After the Siddaramaiah-led dispensation increased minimum wages for workers by 60 per cent in Karnataka and the central government announced a revision in fuel prices, hoteliers warned of soaring food prices.

The price of one plate of idli could touch ₹80, while masala dosa may cost ₹150.

Karnataka State Hotels' Association (KSHA) president G K Shetty, in a statement, said:“The minimum wages have increased by almost 60%. So, prices of food items will have to be increased. A plate of idli, which now costs ₹50 may rise up to ₹80 and masala dosa, which now costs around ₹80 - ₹90, may shoot up to ₹150."

Also Read | Karnataka hikes minimum wages by 60%: Check revised slabs in Bengaluru

Hoteliers warned that prices of nearly every item on restaurant menus could rise sharply. Vegetarian meals currently priced between ₹150 and ₹200 may increase to ₹250– ₹300, while biryani dishes costing ₹300– ₹350 could climb to nearly ₹500.

'Operating costs will increase drastically'

Shetty said the increase in minimum wages would place additional pressure on the hospitality sector, which is already grappling with soaring operating expenses.

“Operating costs will increase drastically. This will particularly affect the small and family-run establishments that are already struggling with rising expenses. The price of commercial LPG cylinders has been hiked from ₹1,884 to ₹3,152 in just a few months. Groceries, power tariffs, garbage cess have all increased,” he said.

Speaking to Deccan Herald, hoteliers in Bengaluru said they were compelled to increase food prices for selected items to cope with the situation.“It has hit us twice. We have to increase wages of workers and pay for increased transportation costs. We cannot meet the expenses unless we increase prices of dishes, especially the oil-based items like dosa, puri and our meal packages that come with multiple dishes.”

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Rohit Shankar, owner of Way Cafe in Kalyan Nagar, told DH:“I run a small eatery serving breakfast, lunch and dinner - mostly rice items. I had two wokers, but I have only one as I had to send the other off because I can't afford to pay him. I have increased prices of some dishes by ₹20 per plate”.

How the revised wages in Karnataka look:
    Labourers in Bengaluru will get a minimum of ₹23,376 per month. Skilled workers will be entitled to ₹31,114 per month in the state capital. The revised rates in other parts of Karnataka will range between ₹19,300 and ₹21,251 per month.

Labour Minister Santos h Lad on Saturday described the move as“the fulfilment of a long-pending demand of the labour community across Karnataka.”

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The minister said the revised wage notification aims to strengthen economic security for workers in the unorganised sector and employees across specified industries in the state, while also bringing lakhs of workers under a common framework for the first time.

"Our government has issued a notification increasing the minimum wages of workers by 60 per cent. Through this, our government has fulfilled a long-pending demand of the labouring community in the state," Lad said in a post on 'X'.

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