Combined with falling business volumes, the challenges have driven operating costs up by around 20 per cent. The latest fuel price increase has further squeezed margins, leaving establishments with limited options other than raising prices to manage rising expenses
Since the West Asia conflict began on February 28, the hospitality sector has seen a rise in operating costs. Representation pic/istock
Following the recent hike in commercial LPG cylinder prices, the Hotel and Restaurant Association of Western India (HRAWI) on Thursday said hospitality establishments, already strained due to the West Asia war, are considering raising menu prices to partly offset a nearly 20 per cent increase in operating costs.
Since the conflict began on February 28, the hospitality sector has seen a sharp rise in operating costs driven by on-and-off closures, limited operating hours, menu rejigging, and a shift to alternative cooking methods, HRAWI spokesperson Pradeep Shetty said in a statement.
Alongside, business volumes have dropped, severely straining overall viability, he said, adding that these factors cumulatively have pushed operating costs up by roughly 20 per cent.
“The latest hike in commercial LPG cylinder prices has added yet another layer of pressure on already squeezed margins. Given this scenario, hospitality establishments may now be left with little choice but to consider an upward revision in menu prices to partially absorb the escalating cost burden,” Shetty pointed out.
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