Raw material prices boil, restaurants and cafe operators increase prices

In the weekend, the cost of planning lunch or dinner with the family is now too expensive. (Inflation) Eye has been caught. rising food inflation (Food Inflation) Fine-dining and quick service restaurants, bars and cafes are also increasing their prices to cope with this. The prices of food items here have increased by up to 15 percent. Many restaurant chains have discount (Discounts) We are proceeding on the strategy of reducing and increasing prices. Restaurants operators say that in the last three months the raw material (Raw Material) The cost has gone up from 7 per cent to 30 per cent. This inflation is not only hitting the restaurants, but online food ordering has also become expensive.

Domino’s Pizza, KFC and Pizza Hut have already increased their prices. Anjan Chatterjee, chairman of specialty restaurants that operate brands such as Mainland China, Asia Kitchen and Sigri Global Grill, says that the impact of the Russo-Ukraine war would be so much, we never imagined. The prices of sunflower oil and petrol and diesel have increased a lot. In such a situation, the restaurant operators have no other option but to increase the price for the customers.

If experts are to be believed, then the restaurant industry is being hit by the cost of goods like fuel, dairy, vegetables and poultry. Apart from this, rising electricity prices have added to the difficulties of this industry. Apart from this, the supply chain has also been disrupted due to Russia-Ukraine war. Due to this, the production of cereals, the supply of edible oils and the export of fertilizers have been affected at the global level. Because of this also food and drink are getting expensive.

The prices of palm oil, the most used vegetable oil in the whole world, have increased by almost 50 percent this year. Inflation as measured by the Consumer Price Index (CPI) stood at 6.07 per cent in the month of February. Retail inflation was recorded at 6.01 per cent in January. Food inflation has increased to 7.68 per cent in March, from 5.85 per cent in February. This is the third consecutive month that the inflation rate has crossed the RBI’s upper limit of 6 per cent.

Inflation graph like this increased

Commodity Inflation Rate (February) Inflation Rate (March)

Potatoes 14.78% 24.62% Eggs, Fish 8.14% 9.42% Vegetables 26.93% 19.88% Fruits 10.3% 10.62% Wheat 11.03% 14.04% Onions -26.37% -9.33% Cereals 6.07% 8.12%

Source – WPI Food Index

There are two types of inflation in India. One retail means retail and the other wholesale inflation. Retail inflation rate is based on the prices offered by ordinary customers. It is also called Consumer Price Index (CPI). Whereas, Wholesale Price Index (WPI) refers to the prices that one trader in the wholesale market charges from another trader. These prices are linked to deals made in bulk. Different items are included to measure both types of inflation, so obviously when the price of raw material increases, then the finished products will also be expensive and customers like you and us will have to face this.

(Story: Saurabh Dixit)