Divya Agarwal
President AHAR Vijay K Shetty
Mumbai (Maharashtra) [India], October 16: The Indian Hotel and Restaurant Association (AHAR) has announced an impending 10% to 15% increase in restaurant menu prices across its member establishments in Mumbai, citing sustained increases in the cost of preparing and serving food. The revision follows several months during which restaurants absorbed higher expenses to limit the impact on customers.
AHAR President Shri Vijay K Shetty said, “For the city’s restaurant sector, the challenge extends beyond the price of any single commodity. Cooking fuel, everyday ingredients, commercial rents, employee wages and transportation have become more expensive. With these costs rising together, establishments face growing pressure on the margins that support daily operations.”
Recent reports illustrate the pressure on everyday kitchen essentials. Consumer Affairs Department data reported year-on-year price increases of nearly 113% for onions, approximately 22% for sugar and 18% for sunflower oil. Separately, local market coverage reported retail increases of Rs 20 to Rs 30 per kg for major pulses across the Mumbai Metropolitan Region in recent weeks. For restaurants purchasing these ingredients daily, such increases affect preparation costs across a wide range of dishes.
Beyond ingredient prices, AHAR reported a 100% increase in commercial LPG cylinder prices, sharply raising kitchen fuel expenses. Higher milk and dairy prices have added to the cost of core menu items. Wages and workforce expenses have also risen as restaurants support staff facing higher living costs, while increasing commercial rents have added to fixed overheads and squeezed operating margins
AHAR said the proposed adjustment reflects the cumulative burden of higher procurement and operating expenses. Even where individual ingredient prices stabilise or ease temporarily, restaurants continue to carry higher recurring costs. The cost of a meal includes the people who prepare and serve it, the premises in which it is served, and the hygiene, maintenance and utilities required to keep a kitchen functioning consistently.
The association emphasised that the revision is intended to recover a portion of the additional expenditure while maintaining food quality and service standards. Continuing to absorb the full increase, it said, has become increasingly difficult for operators.
Affordability remains an important consideration in a city where restaurants serve both occasional diners and customers who rely on them for everyday meals. AHAR acknowledged that any menu adjustment affects household spending, making it necessary to balance customer expectations with the practical requirements of running a viable establishment.
The forthcoming revision reflects that balance: preserving the standards customers expect while allowing restaurants to meet their operating commitments and retain the staff on whom service depends.
Revised prices are expected to be introduced progressively over the coming weeks across dine-in, quick-service and delivery menus. AHAR’s position is that a measured adjustment has become necessary to sustain dependable restaurant service in Mumbai as the underlying cost of providing it continues to rise.
