Mumbai, April 2 Following the recent increase in commercial LPG cylinder prices, the Hotel and Restaurant Association of Western India (HRAWI) said on Thursday that hospitality establishments, already facing difficulties due to the conflict in West Asia, are considering raising menu prices to partially offset a nearly 20 per cent increase in operating costs.
Since the conflict began on February 28, the hospitality sector has seen a sharp rise in operating costs driven by fluctuating closures, limited operating hours, menu adjustments, and a shift to alternative cooking methods, HRAWI spokesperson Pradeep Shetty said in a statement.
Alongside, business volumes have dropped, severely straining overall viability, he said, adding that these factors cumulatively have pushed operating costs up by roughly 20 per cent.
"The latest hike in commercial LPG cylinder prices has added another layer of pressure on already strained margins. Given this situation, hospitality establishments may now be left with little choice but to consider an upward revision in menu prices to partially absorb the escalating cost burden," Shetty pointed out.