Restaurants across India are preparing to increase menu prices following a third consecutive increase in commercial LPG cylinder prices by ₹933. According to The Times of India, this substantial cost increase, combined with rising plastic and packaging rates, is forcing restaurants and companies to implement price hikes after refraining from increases for more than a couple of months since the West Asia war began. The timing coincides with concerns in the industry about potential further fuel charge increases now that elections have concluded.
Speciality Restaurants, which operates popular brands including Oh! Calcutta and Mainland China, is planning to increase menu rates within the next couple of days. As reported by The Times of India, founder Anjan Chatterjee revealed that the company's cost of LPG cylinders has increased by ₹14 lakh per month. Chatterjee noted that while the company will attempt to implement minimal increases, they are compelled to hike menu rates due to the exponential rise in LPG cylinder costs and industry apprehension about potential further fuel charge increases.
The LPG cost surge is significantly impacting restaurant operations across the sector. According to The Times of India, about 10% of food cost was previously accounted for by LPG cylinders, which will now increase to 12-15%. Sagar Daryani, co-founder & CEO at Wow! Momo Foods and president at the National Restaurant Association of India (NRAI), highlighted that smaller cloud kitchens and cafes are struggling to secure LPG cylinders at fair rates. The substantial increase in LPG costs is expected to affect prices of various food items including pasta, biryani, namkeen, and biscuits.
