The Hindu : Karnataka / Bangalore News : Inflation hits hotels, price rise likely

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Thursday, Jul 31, 2008
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Karnataka

Karnataka - Bangalore

Inflation hits hotels, price rise likely

Staff Reporter

Increase in commodity costs cited as reason

Eateries to increase prices of food items between 50 paise and Rs. 2
The Greater Bangalore area has over 7,000 hotels

BANGALORE: With prices going northwards, be prepared soon to pay more when you eat out.

Neighbourhood eateries across the city are set to increase the prices of food items between 50 paise and Rs. 2, blaming the “unabated” rise in commodity prices. While some have upped the prices, most will follow suit soon.

The quantum of increase would be dependent on locality and the hotel’s overheads.

Meeting

It is learnt that the recent executive committee meeting of the Bruhath Bangalore Hotels’ Association held that the price rise is inevitable, but the decision to increase prices has been left to the choice of individual hoteliers. The Greater Bangalore area has over 7,000 hotels.

“Hotels have not been issued any specific direction over the issue of price rise. However, individual hoteliers have been asked to decide on the prices based on the locality and overheads,” association president K.N. Vasudeva Adiga told The Hindu. But he said hoteliers would not be effecting increase on every food product.

Garbage cess

Apart from the rise in the prices of commodities, he said the Bruhat Bangalore Mahanagara Palike (BBMP) had imposed a garbage cess of Re. 1 on every kg of garbage generated by hotels.

“Rents go up anywhere between 5 and 15 per cent annually, wages are on the rise and the BBMP cess will cause additional burden. In such a scenario, we have to protest our interests,” he added.

Wage

In fact, Mr. Adiga said the wage of a head cook had gone beyond Rs. 7,000 a month.

Association treasurer K. Balachandra Shetty said the price of edible oil, which was around Rs. 50 a kg, has risen to around Rs. 90 and that of a 19-kg commercial gas cylinder from around Rs. 700 to around Rs. 1,250.

Affected

Urad dal, an important ingredient in vada, idli and dosa, had seen a rise from Rs. 32 a kg to around Rs. 50 a kg. “Increased price of rice has affected us badly as nearly 50 per cent of the preparations are rice-based. A kilogram of Sona Masuri that was around Rs. 18 has increased to Rs. 28,” Mr. Shetty said.

It is learnt that Basmati has also increased from around Rs. 33 to around Rs. 85 a kg. “Considering all these, we have no choice but to consider an increase that will also not burden consumers,” he added.

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