As price of cooking oil soars, restaurants look at cost-cutting measures

While some hotels are looking at cutting down on fried food items, others are worried that they may have to hike prices after April 1

With plummeting COVID-19 cases, restaurants are packed as patrons return to their favourite haunts, but eating out may soon become more expensive. The war in Ukraine has already affected the supply of sunflower oil, and the hotel industry, which is only slowly recovering from the pandemic, is down in the dumps again over fears of fuel prices rising. 

Industry experts state that hiking prices of food items on the menu may be inevitable if the situation does not ease. However, this may come into effect only after April 1.

The war between Ukraine and Russia has driven up the price of cooking oils by 20-40%. According to restaurateurs, hoarding has created an artificial scarcity of cooking oils in the market, which is further driving up prices.

Chandrashekhara Hebbar, president of Karnataka Pradesh Hotels and Restaurants’ Association, said that many hotels will now have to cut down on fried food dishes and push other menu items. Increasing prices again may adversely affect the business, he stated.

P.C. Rao, president of the Bruhat Bengaluru Hotels’ Association, told The Hindu that the association had orally complained about hoarding to the Department of Food and Civil Supplies. “Several hotels were forced to close down because of COVID-19. With the increase in price of essential commodities, more hotels may have to down their shutters,” he said. He pointed out that food prices had increased by 5-8% just a few months ago.  “The association will meet with Chief Minister Basavaraj Bommai to discuss issues faced by the hotel industry.”

J. Manjunath, Deputy Commissioner, Bengaluru (Urban), told reporters here on Friday that his office would look into hoarding allegations and crack down on those responsible for creating artificial scarcity of oil in the market.

The increase in prices of essential commodities will have a ripple effect on our margins, said Mukesh Tolani, National Restaurant Association of India chapter head – Bengaluru. “Many restaurants are already under great stress, and have been absorbing the increase in input costs,” he said.