Mangaluru: Hotels across Dakshina Kannada are weighing a fresh increase in food prices after a steep rise in commercial LPG cylinder rates pushed up operating costs for restaurants and eateries. Industry representatives said menu prices in the district could go up by at least 10%, with some establishments already implementing partial revisions.Kudpi Jagadeesh Shenoy, president of Dakshina Kannada Hotel Owners Association, said hotel prices across the district are expected to rise by 10 to 15% with immediate effect. He said the increase is being driven not only by the jump in commercial LPG prices but also by costlier ingredients and higher wages.
Some restaurants have already moved ahead with the revisions. Anmol Family veg restaurant in Bejai has increased the total bill by 5%. Owner Vasanth Kamath said the restaurant usually revises prices annually in Oct, but weak business conditions has forced a 7% hike in Feb and another 5% increase from May 1. He said the sector would face a bigger blow if diesel prices increase, as that would automatically push the cost of raw materials.Despite the pressure, hoteliers said Dakshina Kannada remains a highly price-sensitive and competitive market. However, many said that any diesel price hike would raise transport costs and trigger another round of increase in the price of vegetables, groceries, and other essentials.BN Girish, senior vice president of Ocean Pearl , Mangaluru, said businesses are still analysing the extent of the revision, but are likely to go ahead with a minimum 10% increase.Some hoteliers said they may continue or expand the use of firewood cooking. due to rising LPG prices. Establishments with sufficient space have already partially shifted to firewood.
