Dining Out and Food Delivery Likely to Get More Expensive After Fuel Price Hike
Eating out at restaurants and ordering food online could soon become more expensive for consumers across India. Industry executives say dining-out bills and food delivery charges may rise by 5% to 10% from next week after state-run oil marketing companies increased petrol and diesel prices on Friday.
Restaurant owners and food delivery businesses say the latest fuel price hike has added fresh pressure on an industry that has already been struggling with rising commercial LPG prices, transportation costs, and workforce shortages since the start of the West Asia conflict.
“Fuel price hikes will lead to an increase in our transportation, packaging, material and input costs; we are not left with any choice but to increase prices,” said Vikrant Batra, founder of Cafe Delhi Heights, which has 50 outlets across 17 cities. “The cascading effect is such that the cost of living for our staff members will also go up,” he added.
Several restaurant chains are expected to revise menu prices starting next week, while some brands plan to gradually introduce price increases in June or July.
NRAI president Sagar Daryani, who is also cofounder of Wow! Momo, said the industry has little room left to absorb additional costs.
“Usually, we take an annual price hike around September. This year, we have no choice but to increase prices from July 1,” he said.
Friday’s increase marked the first major fuel price hike in nearly four years. Petrol prices in Delhi have now reached Rs 97.77 per litre, while diesel prices have climbed to Rs 90.67 per litre.
A senior executive at a leading food delivery platform said rising operational costs could force platforms to revise their pricing strategies in the coming weeks.
At the same time, restaurant owners are also worried about the impact of reduced office dining. Following Prime Minister Narendra Modi’s appeal for work-from-home arrangements, many restaurants have already noticed lower lunch-hour footfall and reduced group dining.
“The sentiments have been low after the PM's announcement on working-from-home,” said Saurabh Khanijo, managing director of Kylin chain of restaurants.
Restaurant owners and food delivery businesses say the latest fuel price hike has added fresh pressure on an industry that has already been struggling with rising commercial LPG prices, transportation costs, and workforce shortages since the start of the West Asia conflict.
Restaurants Facing Rising Operational Costs
Many restaurant chains say increasing fuel prices are directly affecting transportation, packaging, raw material procurement, and staff expenses. Businesses now believe price hikes are unavoidable if they want to maintain operations and profitability.“Fuel price hikes will lead to an increase in our transportation, packaging, material and input costs; we are not left with any choice but to increase prices,” said Vikrant Batra, founder of Cafe Delhi Heights, which has 50 outlets across 17 cities. “The cascading effect is such that the cost of living for our staff members will also go up,” he added.
Several restaurant chains are expected to revise menu prices starting next week, while some brands plan to gradually introduce price increases in June or July.
LPG Price Surge Adding More Pressure on Food Industry
The National Restaurants Association of India (NRAI) says the fuel price increase comes at a time when restaurants are already dealing with sharply higher commercial LPG prices.NRAI president Sagar Daryani, who is also cofounder of Wow! Momo, said the industry has little room left to absorb additional costs.
“Usually, we take an annual price hike around September. This year, we have no choice but to increase prices from July 1,” he said.
Friday’s increase marked the first major fuel price hike in nearly four years. Petrol prices in Delhi have now reached Rs 97.77 per litre, while diesel prices have climbed to Rs 90.67 per litre.
Food Delivery Charges May Also Increase
Industry executives believe higher fuel and logistics expenses will also impact food delivery services. Customers may soon see increased delivery charges, fewer discounts, and changes in minimum order values.A senior executive at a leading food delivery platform said rising operational costs could force platforms to revise their pricing strategies in the coming weeks.
At the same time, restaurant owners are also worried about the impact of reduced office dining. Following Prime Minister Narendra Modi’s appeal for work-from-home arrangements, many restaurants have already noticed lower lunch-hour footfall and reduced group dining.
“The sentiments have been low after the PM's announcement on working-from-home,” said Saurabh Khanijo, managing director of Kylin chain of restaurants.
Restaurants Trying to Avoid Burdening Customers
Despite rising expenses, several restaurant brands say they are trying to avoid passing the full burden onto customers immediately. Many businesses are focusing on operational efficiency, menu restructuring, and alternative energy solutions to manage costs.Next Story