The Bruhat Bangalore Hotels’ Association has announced that their member hotels, which include at least 2,000 small, medium and fine-dining hotels, will hike the prices of items across the board.
P.C. Rao, president of the association, told The Hindu that the price hike will be between ₹2 to ₹5 per item and that it was “inevitable” given the rise in rates of essential commodities.
“The eating out culture in Bengaluru is growing. Bachelors, working couples, and even senior citizens are dependent on hotels, and that is why more hotels have come up as well. But it is becoming difficult to survive amidst the rising prices of milk, vegetables, gas, electricity and rent, without increasing the prices of items sold,” Mr. Rao said.
He said while some hotels have already implemented the new rates, others will follow suit. “Prices of all items have to be increased. It has been at least four years since they were increased. We were trying not to burden the customers, and were bearing the extra cost. But now, to survive we will have to do this,” he added.
The decision to increase prices was a unanimous one, association members said, adding that closing hotels was not an option owing to the large number of employees.
Small hotels are expected to increase rates first, followed by the medium, and the fine-dining ones. The new prices of items on online food delivery portals will reflect immediately or subsequently, they said.
There are reportedly around 18,000 hotels in the city, including star hotels and bars and restaurants.
Hotels across the State will also follow suit. Karnataka Pradesh Hotels and Restaurants’ Association president Chandrashekar Hebbar said its 5,000 members will also be hiking prices as the price rise of essentials, such as milk, ghee and curd (KMF hiked prices recently), refined oil and gas, were across the State.
“So coffee which was being served for ₹10 may cost ₹12 now. Our rates are lower compared to our neighbouring States and it has been nearly a decade since since we hiked rates. Even street vendors are selling at higher rates. People want quality and hygiene and we are not increasing prices drastically,” he said.
“Earlier, we would be able to balance one price rise with another. For example, if onion prices were up, vegetable prices were lower, or we would just reduce the amount of onions in dishes that require them for taste. Now, the prices of almost everything are up,” he said.
