Your plate of biryani or your breakfast of idlis and dosa could soon cost 60% more in Karnataka. The Karnataka State Hotels Association (KSHA) has now warned that the government’s revised minimum wages for workers could trigger a steep increase in food prices in restaurants and hotels across the state. This could mean that your next meal at a hotel or eatery may become more costly. Here’s what we know so far about this update.
Karnataka Hotel Food Prices May Rise
According to Deccan Herald, the state government has decided to hike the minimum wages of workers by as much as 60% in Karnataka. This could drastically impact hoteliers and restaurateurs, and as a result, food prices are expected to increase sharply. A plate of idlis that used to cost ₹50 might now be sold for ₹80.
People who love to gorge on masala dosas may now have to pay ₹150 instead of ₹80-90. Not just idlis or dosas, the price of every item on the menu is expected to increase. Vegetarian meals that were priced at ₹150-200 may go up to ₹250-300. Meanwhile, the cost of a plate of biryani could increase from ₹300 to nearly ₹500.
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Hotels & Restaurants Are Struggling With Operational Costs
According to The New Indian Express, hotels and restaurants are already struggling with operational costs due to fuel prices. And now, with the revised wage structure, there is an additional burden on small hotel operators. Reportedly, the wages now range from ₹19,300 for unskilled workers in Zone 3 to ₹31,100 for highly skilled workers in Zone 1.
Apart from LPG costs, hoteliers in Karnataka are also dealing with increased grocery prices, electricity tariffs and garbage cess charges. And if the revised wages are implemented in the current form, the prices of many food items could increase, and consumers may have to pay much more.
The association has urged the government to reconsider the implementation of revised minimum wages for the hotel industry. According to them, this new change is not just problematic for hotel operators and restaurants but also for consumers.
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What do you think of this new change? Do share your thoughts with us in the comments section below.
Cover Image Courtesy: Canva Pro/ Mahi Ryan
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Why are food prices in Karnataka hotels expected to rise?
Food prices in Karnataka hotels may rise due to revised minimum wages and increasing operational costs for hotels.