New Delhi: Bengaluru’s hotel and restaurant owners have warned that food prices may rise sharply after the Karnataka government notified a minimum wage
hike for workers across the state. The revised wage order, issued on May 22, applies to 81 scheduled sectors and covers around two crore workers.
For regular customers, the concern is simple. A quick breakfast, lunch at a small darshini, or a weekend biryani may soon cost more. Hoteliers say the new wage burden, along with rising raw material, fuel and LPG costs, will make it hard for them to hold current menu prices for long.
Dosa, idli and biryani may cost more
According to an Indian Express report, Karnataka State Hotels’ Association president G K Shetty warned that menu prices could see a big jump if the wage revision is implemented.
“Once implemented, a masala dosa’s cost could rise from Rs 80 to Rs 150, vegetarian meals from Rs 150-200 to Rs 250-300, and biryani from Rs 300-350 to nearly Rs 500. Even a plate of idli, currently priced around Rs 50 at most eateries, may soon cost Rs 80 or more following the wage revision,” Shetty said.
There are nearly 60,000 hotels in Karnataka, and about 15,000 are members of KSHA. That means this is not a small industry complaint. It could affect daily food bills across cities and towns.
Why hotels say costs are rising
Under the new wage rules, Karnataka has been divided into three zones. Workers are classified as highly skilled, skilled, semi-skilled and unskilled.
In Zone 1, which includes Bengaluru and districts with municipal corporations, the monthly minimum wage for unskilled workers will increase from around Rs 19,000 to Rs 23,276, according to the provided details.
Bruhat Bengaluru Hotel Owners Association president P C Rao said the hospitality business is already under stress.
“Due to the West Asia conflict, the hospitality industry has already been massively affected. The prices of raw materials and LPG have shot up. Petrol and diesel prices have also increased. The minimum wage hike would be a big jolt,” Rao told The Indian Express.
He added, “We will be left with no choice but to increase the prices. The prices of essential commodities have already risen, with Sona Masuri rice increasing by Rs 5 per kg and jeera rice by Rs 10 per kg.”
Employers count higher worker cost
Hotel associations say if Rs 23,276 is fixed as the monthly minimum wage for unskilled workers, the total cost for employers could touch Rs 36,000 per worker after adding ESI, provident fund, food, accommodation and other expenses.
The state says the wage revision is based on household expenditure calculations as per Supreme Court guidelines in the 1991 Reptakos Brett case. For hotel owners and customers, the real test will now come at the billing counter.
