Eateries cut corners as high costs and hygiene crackdowns take a toll

Amid rising food inflation, many Indian restaurants are implementing various strategies to manage costs. These strategies include pausing high-cost menu items and introducing smaller portions for diners. Increased operational expenses due to regulatory compliance have also led to price hikes for consumers. Many restaurant operators indicate they must share some inflation costs with patrons to maintain profitability. Consequently, price increases of 10-15% are expected across several restaurants in Mumbai.

New Delhi: From pausing high-cost items on the menu, to introducing smaller meals or reducing portions, or increasing prices by 4-5% starting October, fine-dine chains, restaurants and cafes are resorting to various measures in peak festive season amid surging food inflation and higher costs of hygiene compliances. "We have paused serving some higher-priced options in our biryani range, which involve high-cost ingredients," said Raymond Andrews, co-founder of quick service restaurant (QSR) chain Biryani Blues. Executives said they are putting in place a combination of measures amid tight market conditions, adding that the ongoing inflation is having a far more long-term and significant impact compared to the LPG supply disruptions crisis during March-April this year, at the peak of the West Asia war, which had led to unchecked increases in costs. Advt

"There is no other way out now but to share some of the inflation load with consumers, and some costs we will absorb," said Saurabh Khanijo, managing director at Asian cuisine chain Kylin. The spotlight and crackdowns by Maharashtra Food and Drug Administration (FDA) and Food Safety & Standards Authority of India (FSSAI) on food safety, sanitation, storage methods and licensing violations have further led to increased costs by chains, some of which chains are passing on to consumers, executives said.

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