Hotels resort to cost-cutting measures in view of rising prices

BENGALURU: The common citizen has already been affected by price hikes on essential commodities during the festive season. The prices of tomatoes, onions, garlic and edible oil have skyrocketed, making it difficult for consumers. Now, hoteliers too seem to be feeling the pinch.

The price of coffee is also expected to increase by Rs 100 per kg from October 15, according to the Indian Coffee Trade Association. Hotel owners are struggling to cope with the rising prices, especially tomatoes, which have reached Rs 100 per kg. To mitigate this, hoteliers are using tomato puree as a substitute and reducing onion usage in dishes. The price hike has also affected preparation of dosas.

The demand for coffee has risen in the international market due to insufficient supply, coupled with less crop yield due to the monsoon. P C Rao, president of the Bruhat Bengaluru Hotels Association, said that the demand for coffee has increased due to insufficient supply, but no decision on hiking prices has been made yet.

Virendra Kamat, Secretary, Bruhat Bengaluru Hotels Association, said, “We are waiting for the situation for a month before deciding on price hikes. Price hikes are temporary crises, depending on the monsoon. We can use substitute material for some vegetables. We can prepare South Indian dishes without onions. The hotel owners have no plan to increase the prices for now. We hope that the prices will reduce by next month. So there is no plan for hiking the prices of food”.