Food Service Prices Set to Rise by 5-10% Due to Fuel Price Hike
Eating out or ordering online may soon cost more: Food services set to become 5–10% costlier starting next week amid fuel price hike
The Economic TimesImage: The Economic Times
Starting next week, dining out and food delivery services in India are expected to become 5-10% more expensive due to a recent hike in fuel prices. Industry executives cite increased transportation and operational costs as the primary reasons for this price adjustment, which comes amid ongoing inflationary pressures on consumers.
- 01The price of petrol in Delhi has reached ₹97.77 per litre, while diesel is ₹90.67 per litre.
- 02The National Restaurants Association of India (NRAI) noted a 60% surge in liquefied petroleum gas costs over recent months.
- 03Some restaurant chains will adjust menu prices as early as next week, while others may implement staggered increases starting in July.
- 04Delivery platforms like Zomato and Swiggy may raise channel partner fees, complicating profitability for restaurants.
- 05Executives express concern that higher prices could further dampen consumer demand, which is already under inflationary stress.
Advertisement
In-Article Ad
Dining out and ordering food in India are set to become 5-10% more expensive starting next week, following a significant increase in fuel prices by state-run oil marketing companies. Petrol now costs ₹97.77 per litre and diesel ₹90.67 per litre in Delhi. This price hike comes after a 60% surge in liquefied petroleum gas costs, which has already strained restaurant operations. Vikrant Batra, founder of Cafe Delhi Heights, emphasized that rising transportation, packaging, and labor costs leave restaurants with no choice but to increase menu prices. The National Restaurants Association of India (NRAI) president, Sagar Daryani, indicated that many chains will implement price adjustments sooner than usual, with some starting next week and others in July. Additionally, logistics costs are expected to rise, leading to increased delivery charges and reduced discounts from food delivery platforms. Despite the need for price increases, restaurant executives are wary of the potential impact on consumer demand, which has already been affected by inflation and changing work-from-home dynamics.
Advertisement
In-Article Ad
The increase in food prices will affect consumers' dining choices and potentially reduce the frequency of eating out or ordering in, as many are already facing inflationary pressures.
Advertisement
In-Article Ad
Reader Poll
How do you feel about the upcoming price increases in food services?
Connecting to poll...
Read the original article
Visit the source for the complete story.


