16 October,2026 07:17 AM IST | Mumbai | Ritika Gondhalekar
Representation pic/iStock
Rising ingredient prices are not the only reason diners may soon pay more at restaurants. Hoteliers say higher overheads, including investments in cleaning equipment, staff training and upgraded hygiene practices, are adding to their costs as they adapt to evolving standards.
The Indian Hotel and Restaurant Association (AHAR) plans to increase menu prices by 10-15 per cent from next week, with industry representatives citing rising raw material costs and the expense of maintaining hygiene and cleanliness.
"Overhead charges, apart from the rise in raw material costs, have risen. We need to train our staff in terms of hygiene in an upgraded manner, salaries need to be increased accordingly, cleanliness upgrades such as better and electric cleaning equipment need to be introduced," said Vijay K Shetty, president, AHAR.
He said the industry had absorbed rising costs for a considerable period and that the proposed hike was necessary to maintain food quality, hygiene and service, rather than to increase profits.
"We are not saying that the hotels have given unclean services till date. But yes, upgrades must be done as per the needs of the time. And all these upgrades add up to financial burdens even if they look small," Shetty said.
Restaurant owners say maintaining hygiene now requires additional spending on staff and supplies. Kaustubh Tambe, owner of Aram Vada Pav, said he was considering hiring an agency to deploy a dedicated cleaner for each shift.
"Our staff have been cleaning the hotel properly and regularly. But now the situation is such that if there is a delay in cleaning a portion just for a few minutes due to rush or something, people make a fuss and then there are FDA inspectors ready to catch hold of even honest hoteliers like us," Tambe said.
He said the agency had quoted Rs 30,000 a month for one person, which would amount to R60,000 a month for two shifts.
Tambe added that the restaurant had also switched to food-grade wrapping paper instead of cheaper newspapers, increasing its expenses. He said raw material prices had also risen sharply.
Diners say hygiene is a basic obligation for food businesses and question why customers should pay extra for standards they already expect
1 Raw materials: Restaurant owners cite rising ingredient prices
2 Staff and training: Hoteliers say they need to invest in hygiene training and higher salaries
3 Cleaning: Dedicated cleaning staff and modern cleaning equipment add to overheads
4 Food packaging: Food-grade wrapping paper costs more than newspapers, which some establishments previously used
5 FDA fines: Restaurant owners say penalties for violations add to their financial burden
Restaurant owners have also pointed to fines imposed by the Food and Drug Administration (FDA) as an additional financial strain.
"The fines are as high as five and ten lakh. Which hotel can bear this brunt?" asked Naresh Nayak, owner of Cafe Mysore.
Nayak said several businesses in the community had suffered losses after being fined. His own restaurant has been closed for renovations for several months.
With raw material prices rising amid geopolitical tensions, he questioned whether a single menu price hike would be enough to cover the additional costs.
Customers, meanwhile, say hygiene should be a basic requirement of any food business and not a reason to charge more.
"Any business that you run demands hygiene - irrespective of it being something consumable or not. In a city like Mumbai, no one will ever stop eating outside food. But does that give freedom to either give low-quality food or serve it in unhygienic conditions?" asked Bharti Lalvani, a Malad resident.
Another resident, Suhasini Venkatesh, questioned the value of paying more when hygiene lapses can occur even at high-end establishments.
"Paying a bit extra for hygiene is understandable. But what do you do when cockroaches are found even in 5-star hotel food? What are they charging extra for then?" she said.
. Proposed increase: 10-15 per cent
. Effective from: Next week, according to AHAR
. Reasons cited: Higher raw material costs and additional spending on cleanliness and staffing
