Mumbai’s restaurant industry is facing mounting pressure from rising food prices, commercial LPG costs, rentals, salaries and other operating expenses. With restaurants expected to increase menu prices by 10-15% from next week, industry leaders say businesses must balance profitability with customer affordability without compromising food quality or service. Here’s what the restaurateurs have to say about it.
What Mumbai Restaurateurs Have To Say About Price Hike?
Suraj Shetty, Managing Director of Malgudi Foods Private Limited, which operates Banana Leaf, said rising costs of cooking gas, vegetables, raw materials, manpower, rent and utilities are putting restaurant margins under pressure. He noted that South Indian restaurants face a particular challenge because customers expect everyday staples such as dosa and idli to remain affordable. He added that price revisions are not necessarily a route to higher profits but may help businesses offset rising expenses.
Another prominent restaurant leader, Avanish Chaturvedi, F&B Manager at ITC Grand Central, Mumbai, said restaurants should explore menu engineering, food-cost optimisation, supplier negotiations and waste reduction before passing the entire burden on to customers. He stressed that selective price revisions, based on ingredient costs and customer willingness to pay, can help businesses protect margins while maintaining the dining experience.
Rahul Kotyan, Head of Operations at Paashh, Bandra, said a 10-15% menu price revision is becoming difficult to avoid as commercial LPG, rentals, labour and ingredient costs rise. With many restaurants operating on net margins of just 3-6%, he said smaller independent outlets could face margin pressure, while customers may dine out less frequently or opt for lower-priced options.
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Shashank Shetty, Director at Peninsula Redpine Hotel, which operates Tattva Bar & Cafe Mumbai, said restaurants can only cut costs so far before quality and service begin to suffer. He pointed to rising input costs, aggregator commissions and discounting pressures, adding that sustainable pricing must reflect the actual cost of delivering the experience customers expect.
Sujith Shetty, founder of Stand by Coffee, which has outlets in Juhu, Bandra and Worli, also highlighted rising ingredient, fuel, rental, salary and logistics costs. He said across-the-board price increases could affect footfall and customer trust, recommending dish-wise cost reviews and selective revisions instead.
Why Does DU Hospitality In Mumbai Cut Prices Instead?
However, not every restaurant group is passing on the additional costs to diners. DU Hospitality, founded by Dhaval Udeshi, is taking the opposite approach by reducing menu prices by 10-15% across Sweeney, Scarlett House, GIGI and Soraia. The move aims to make premium dining more accessible ahead of the festive season while maintaining quality and service standards.
While much of the industry is weighing price increases, DU Hospitality is reducing menu prices by 10-15% across Sweeney, Scarlett House, GIGI and Soraia. The group says the move is intended to give back to customers ahead of the festive season, when people often dine out to celebrate with family and friends.
Dhaval Udeshi, founder of DU Hospitality, said the decision reflects the group’s effort to reward customer loyalty rather than pass every increase in operating costs on to diners. He said the price reductions would be implemented without compromising food quality, service or the overall experience.
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The contrasting approaches highlight the challenge facing Mumbai’s restaurant industry: managing rising costs while ensuring that dining out remains accessible. As businesses review their pricing strategies, controlling expenses, maintaining consistency and demonstrating value will remain central to retaining customers.
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FAQs
Who is the owner of Gigi Bombay?
Gigi Bombay is owned by Chrome Asia Hospitality (also known as Chrome Hospitality), a parent company and restaurant group co-founded by Pawan Shahri, Dhaval Udeshi, and Nikita Harisinghani (also known as Nikita Shahri).
What is the famous hotel in Mumbai?
The most famous hotel in Mumbai is The Taj Mahal Palace, Mumbai.
What is Mumbai famous for?
Mumbai is famous as India's financial, commercial, and entertainment capital, often called the "City of Dreams".
