Nagpur: Suffering the increase in fuel costs has reached the restaurant business too, because the cost of raw materials and transportation staff has soared.
With fuel prices rising nearly 50% in the past seven months, the owner of the restaurant has been helplessly watching profits eroded.
Dilip Kamdar, a veteran hospitality entrepreneur who has a well-known outlet such as Naivehyam and Uttar Dakshin, said, “If we climb the price sharply then there is always fear of customers turning.
Increased input costs are one of the biggest challenges faced by our business field now Because it is very dynamic.
But each restaurant must go with a price increase level, depending on their financial situation.
The only other option is to cut costs.
“Kamdar said that every day they need vegetables and at lower frequencies requiring food gardens that can be saved .
“Obviously, the cost of transportation for these things has risen sharply, so it landed in front of our door with a much higher price point.
And the price of vegetables also fluctuated a little every year, so for that we cannot continue to increase prices every month, “Kamdar said.
For restaurants and wedding destinations right outside the city limits, everything is even more challenging.
Nitin Gopalani, Director of Ramesons Hotel in Katol Road, said, “Our raw material suppliers have now begun to quote us two prices.
One of them is for the door shipment, while others for us to take it from their location.
When this supplier distributes raw materials In the city, they can serve 10 companies in one runaway because they are all in the same environment.
But for them to come to companies like us, they can only serve two to three hotels.
“The transportation costs for staff have also boarded as much as possible.
Travel from the city.
Gopalani said, “We provide a monthly transportation tool for our staff and now has increased by 60%.
With a very busy season in front of us, we have decided to rent houses in the nearest city to accommodate our staff over a busy weekend so they are busy so No need to go home.
“Other restaurant owners, who didn’t want to be identified, said,” When we reopen, almost everyone tweaked their prices around 10% -15%, but it was all lost due to increasing inflation.
The restaurant has a margin of profit It is feasible and that is why all of these costs are absorbed, but now there are margins that need a scale of the economy, which is only a person with a bag that can be maintained.
“
Catch-22: The restaurant feels the heat of price increases, but the owner is aware of the increase in interest rates
