Bengaluru eateries warn of 60% price rise over employee pay hike

BENGALURU: Imagine shelling out Rs 500 for a chicken biryani, Rs 150 for a single masala dosa or more than Rs 100 for a plate of idli in Namma Bengaluru.

Sounds far-fetched?

But this could soon be inevitable. As the state govt weighs a hike in minimum wages of workers and fuel prices continue to climb, you may soon have to penny-pinch to afford that weekend meal or weekday takeout. Hotel associations have warned that prices may go up by as much as 60% on an average in the coming months, though there is no final word on the extent of hike yet.

From darshinis and fast-food joints to mid-range restaurants, eateries across Bengaluru are now bracing for a sharp increase in input costs, which would soon be passed on to customers.

Karnataka State Hotels' Association (KSHA) president G K Shetty said eating out in the city could soon become significantly more expensive.

"Masala dosa prices may rise from Rs 80 to around Rs 150, vegetarian meals from around Rs 150-200 to Rs 250-300, and a plate of biryani from Rs 300-350 to nearly Rs 500," Shetty said in a release.

Even that humble plate of idli, currently priced around Rs 50 at many eateries, could cost Rs 80 or more after the wage revision.

The association said the burden of rising operational expenses is being felt across the sector, which includes nearly 60,000 hotels in Karnataka. Of these, around 15,000 are KSHA members.

"We had been suggesting that the govt raise minimum wages in stages," Shetty told TOI.

Explaining the financial burden on hotel owners, Shetty said the revised minimum wage for an unskilled worker in Bengaluru could be a little more than Rs 23,000. "In addition, we must pay for ESI and PF. If we include food, accommodation and uniform, the expenditure comes close to Rs 36,000 per employee," he said.

Shetty also claimed that Karnataka now has the highest wages in the hospitality sector compared to neighbouring Tamil Nadu and Andhra Pradesh.

"Any hotel that pays according to the govt's directives and conducts business honestly must increase prices by 60% in stages over the next few months," he added.

Hoteliers further pointed out that prices of key commodities have already increased, with Sona Masuri rice now costlier by Rs 5 per kg and Jeera rice by Rs 10 per kg.

Weighing in on the issue, Bengaluru Hotels' Association president P C Rao said: "We have not yet finalised the prices, but it [price rise] is inevitable."

Hoteliers also did not rule out possible layoffs.