Eateries and hotels in Coimbatore fear impact of high input costs 

Eateries, bakeries, and hotels are feeling the impact of high costs as consumers are buying less in Coimbatore.

Eateries, bakeries, and hotels are feeling the impact of high costs as consumers are buying less in Coimbatore. | Photo Credit: S. Siva Saravanan

According to Manikandan Pandiyan, who regularly goes out for a cup of tea during office hour breaks, “the prices of food items are up and consumers are feeling the impact. I go out regularly to drink tea and the price of a cup of tea has increased from ₹7 to ₹12. With increase in price of petrol, I spend around ₹3000 on fuel for my car for two weeks. Earlier, I used to shell out ₹2000. While this may not seem much, the impact for me is that I have started to spend from my savings.”

Many like Mr. Pandiyan are finding it difficult to spend more while eating out and hence, they are reducing the items that they used to buy at a bakery or an eatery.

C.K. Subramanian, president of the Small Hotel, Mess, Bakery and All Food Items Owners Welfare Association, says if a consumer visits a bakery and orders a glass of tea and a slice of coconut bun, he used to spend ₹20 earlier. Now, it is ₹27 to ₹30.

Small eateries used to sell parottas for ₹15 to ₹20. They are finding it difficult to maintain this price as cost of all the inputs has risen. People are reducing the number of items they buy when they visit a bakery or eatery, he says. “May be the bigger hotels can manage. But, not the small players,” he adds.

According to hoteliers, the prices of raw materials saw a steady increase since February and is expected to increase further in the coming months.

Moidu Kammoli, owner of a small-scale restaurant says, “with a surge in the prices of oils, vegetables and LPG cylinders, my profit margin has reduced significantly and I am forced to hike the prices of the products I sell. We are bound to lose our customers in such situations, unlike the big restaurants and hotels. This is the predicament of a small-scale hotel owner.”

Secretary of Coimbatore District Hotel Owners Association M Sivakumar says that prices of LPG cylinders used at restaurants has crossed ₹2000. The price of vegetables has doubled and cost of oil is very high. The recent reduction in price of diesel may check further hike in prices of essentials. But, there is a multifold increase in the cost of producing food items.

“None of the restaurants have revised the rates fearing lose of customers. Yet, customers are reducing the number of items they order at a hotel as they look at the family’s budget and want to control the amount they spend. There is no indication of prices reducing,” he said.

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Printable version | May 25, 2022 9:02:23 pm |