Hotel owners warn revised Karnataka minimum wage rules may push biryani prices to Rs 500 and dosa to Rs 150
Bengaluru: Hotel and restaurant owners in Karnataka have warned of a massive increase in food prices following the state government’s revised minimum wage rules, with industry representatives claiming that the cost of popular dishes such as idli, masala dosa, and biryani could rise sharply in the coming months.
The Karnataka State Hotels Association stated that the revised wage structure, combined with soaring commercial LPG prices and increasing operational expenses, could severely impact the hospitality sector across the state.
According to the association, the price of a plate of idli could increase from the current Rs 50 to nearly Rs 80-90, while masala dosa prices may rise up to Rs 150. The association further warned that the cost of biryani in Bengaluru restaurants could touch Rs 500 if the revised wage policy is implemented without sector-specific relief.
Karnataka Minimum Wage Revision Triggers Concern Among Hoteliers
Speaking on the issue, KSHA President G K Shetty said the hospitality industry was already struggling under rising operational costs and that the new wage structure would further intensify financial pressure on hotel owners.
Under the revised wage rules, minimum salaries reportedly begin from Rs 19,300 for workers and extend up to Rs 31,100 for highly skilled employees.
Industry representatives claim the nearly 60 percent increase in wages could force restaurants and hotels to revise menu prices drastically to sustain operations.
“If the wage system is implemented in its current form, food prices will inevitably rise sharply across hotels and restaurants,” KSHA President G K Shetty warned.
Idli, Dosa and Biryani Prices May Rise Sharply in Bengaluru
The hotel association claimed that several commonly consumed food items may witness steep price hikes due to increasing labour and operational costs.
According to estimates shared by the association:
- Idli plates currently priced around Rs 50 may rise to Rs 80-90
- Masala dosa prices could increase from Rs 80-90 to nearly Rs 150
- Vegetarian meals costing Rs 150-200 may increase to Rs 250-300
- Biryani prices in Bengaluru restaurants could touch Rs 500 from the current Rs 300-350 range
The warning has sparked concerns among customers and small hotel operators who fear reduced affordability and declining business if prices increase significantly.
Commercial LPG Price Hike Adds Pressure on Karnataka Hotels
Apart from wage revisions, hotel owners said soaring commercial LPG cylinder prices have substantially increased operational expenditure.
According to the association, commercial LPG cylinder prices reportedly increased from Rs 1,884 to Rs 3,152 within a short period, placing additional financial stress on restaurants and small eateries.
Hoteliers also cited rising grocery costs, electricity tariff hikes, and garbage collection cess charges as major reasons behind the anticipated food price surge.
The hospitality industry has urged the Karnataka government to treat the hotel sector separately while implementing wage regulations, arguing that many establishments already provide food, accommodation, and uniforms to workers as part of employment benefits.
Hotel Industry Seeks Relief From Karnataka Government
Representatives of the hotel sector stated that small and medium-scale eateries could face severe financial strain if the revised wage structure is enforced without relaxation measures.
Industry leaders warned that the combined burden of labour costs, fuel prices, and utility charges may eventually affect both consumers and businesses across Karnataka’s food service sector.
The issue is expected to trigger further discussions between the hotel industry and the Karnataka government regarding implementation of revised wage policies and possible concessions for hospitality businesses.
