Dining out in Mumbai during the Diwali and Dussehra festive season could become more expensive, as restaurants affiliated with the Indian Hotel and Restaurant Association (AHAR) are expected to raise menu prices by around 10–15%.
In a statement titled Balancing the Price on the Menu with the Cost Behind the Meal, AHAR President Vijay K Shetty attributed the proposed increase to the continued rise in food preparation and restaurant operating expenses.
According to the association, the revised rates are expected to be introduced gradually over the coming weeks. The changes will affect dine-in restaurants, quick-service outlets and delivery menus. Restaurants have reportedly absorbed higher costs for several months in an effort to limit the impact on customers, but maintaining existing prices has become increasingly difficult.
Rising Food and Operating Costs Put Pressure on Restaurants
The cost burden on Mumbai’s restaurant industry extends beyond individual food ingredients. Shetty said cooking fuel, everyday groceries, commercial rents, staff salaries and transportation expenses have all become more expensive, putting pressure on restaurant operating margins.
Recent price data cited in the statement highlights the increase in the cost of essential kitchen items. According to Consumer Affairs Department data, onion prices rose by nearly 113% year-on-year, while sugar became approximately 22% more expensive and sunflower oil prices increased by 18%.
Separately, local market reports indicated that retail prices of major pulses had increased by ₹20 to ₹30 per kg across the Mumbai Metropolitan Region in recent weeks.
For restaurants that purchase ingredients daily, these price movements can increase the cost of preparing a wide range of dishes. AHAR also pointed to a 100% rise in commercial LPG cylinder prices, which has added significantly to kitchen fuel expenses.
Higher milk and dairy prices have further increased the cost of several menu items. At the same time, restaurants are dealing with rising employee expenses as they support workers facing higher living costs.
Higher Rents, Wages and Fuel Costs Add to the Burden
Restaurant operators must manage several recurring expenses in addition to the cost of ingredients. Increasing commercial rents have raised fixed overheads, while higher transportation charges and utility expenses have added to the cost of running daily operations.
AHAR noted that even when the prices of certain ingredients temporarily stabilise or decline, businesses continue to face higher overall operating costs.
The association said the price of a restaurant meal covers more than the food served on a plate. It also includes the employees who prepare and serve it, the premises where customers dine, and the hygiene, maintenance and utilities required to keep kitchens operating properly.
These combined expenses have made it harder for establishments to absorb further cost increases without adjusting their menu prices.
AHAR Says Price Revision Will Help Maintain Quality
According to AHAR, the proposed 10–15% revision is intended to recover part of the additional expenditure while allowing restaurants to maintain food quality and service standards.
The association said businesses have attempted to manage rising expenses without immediately passing the entire burden on to customers. However, continuing to absorb all these increases has become increasingly challenging.
AHAR’s website states that approximately 8,000 restaurants across the greater Mumbai area are associated with the organisation.
With revised menu prices expected to be introduced progressively over the coming weeks, customers may notice higher bills when dining out or ordering food from participating establishments during the festive period.
Disclaimer: This article is based on information and statements attributed to AHAR and the price data cited in the report. Actual menu prices and the timing of any increase may vary by restaurant.