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Hotels, restaurants may increase menu prices amid LPG cost surge

Combined with falling business volumes, the challenges have driven operating costs up by around 20 per cent. The latest fuel price increase has further squeezed margins, leaving establishments with limited options other than raising prices to manage rising expenses

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Since the West Asia conflict began on February 28, the hospitality sector has seen a rise in operating costs. Representation pic/istock

Since the West Asia conflict began on February 28, the hospitality sector has seen a rise in operating costs. Representation pic/istock

Following the recent hike in commercial LPG cylinder prices, the Hotel and Restaurant Association of Western India (HRAWI) on Thursday said hospitality establishments, already strained due to the West Asia war, are considering raising menu prices to partly offset a nearly 20 per cent increase in operating costs.

Since the conflict began on February 28, the hospitality sector has seen a sharp rise in operating costs driven by on-and-off closures, limited operating hours, menu rejigging, and a shift to alternative cooking methods, HRAWI spokesperson Pradeep Shetty said in a statement.

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