Mangaluru: Hotels and restaurants in Mangaluru may raise food prices by 5-10% after the Rs 8 per litre hike in Nandini milk prices from Nov 1, which adds to rising input costs.DK Hotels & Restaurants Association (DKHRA) president Kudpi Jagadish Shenoy said the association would discuss the hike’s impact at a meeting, with hotels likely to consider a menu price increase of around 10%. He said the milk price revision, coupled with rising grocery costs, would impact menu prices. He added that the association had considered a proposal to increase menu prices during the previous round of milk price revisions but had not implemented it.DKHRA secretary Devi Prasad said there would be no uniform hike, and individual establishments would decide based on their operating costs and existing rates. Tea and coffee cost Rs 20-25 at some hotels and Rs 35-40 at others, leaving little scope for steep increases, though lower-priced establishments may have to revise rates.Prasad said toor and urad dal prices rose from Rs 120-130 to around Rs 150, while onions rose from Rs 20 to Rs 50-53 and stayed there for nearly three months. Rice prices had climbed from Rs 50-52 to around Rs 85, with some varieties expected to touch Rs 100. He said a possible Rs 200-300 increase in LPG prices would further strain operations.Hoteliers had held off on price hikes during Oct because of the festive season, but slowing business and declining tourist activity after the festivities were adding pressure. Rising overheads could also push some establishments into losses, Prasad said, adding that overall food prices may rise by 5-10%, depending on the establishment.The catering industry is also bracing for higher operating costs.A Ashwatham Hegde, proprietor of Tulunadu Food Catering Services and executive member of the Dakshina Kannada Catering Owners Association, said the milk price hike would substantially affect catering establishments.“Milk and curd are major items for us. Given the quantity we use, the increase will significantly affect the catering industry. Prices will definitely have to be increased, even if only slightly. A 5-10% increase is certain,” Hegde said.Catering establishments would have to reassess their costing before deciding how much to increase prices. Hegde said rice prices were changing almost daily, adding uncertainty to food-cost calculations. He said a further increase in fuel and LPG prices would add to the burden.
