Mumbai, October 17, 2026: Dining out or ordering food in Mumbai may soon become more expensive, with restaurants considering a 10% to 15% increase in menu prices in the coming weeks.
The Indian Hotel and Restaurant Association (AHAR) has said that rising expenses are putting pressure on the hospitality industry, making a price revision necessary.
Restaurants have been managing higher operating costs for some time without increasing prices significantly. However, the association said that the continued rise in cooking gas prices, food ingredients, commercial rents and employee wages has made it increasingly difficult for establishments to bear the additional expenses.
What's Making Restaurant Food Costlier?
Commercial liquefied petroleum gas (LPG) and piped gas prices have emerged as major concerns for restaurant owners. As cooking gas is essential for daily kitchen operations, the increase in its cost has directly affected restaurant expenses.
Prices of everyday ingredients, including milk, dairy products, vegetables, pulses, onions and edible oils, have also increased. According to AHAR, frequent changes in these prices have made it difficult for restaurants to manage their purchases and keep operating costs under control.
Rising Rents And Salaries Add To Pressure
Restaurants across several parts of Mumbai are also dealing with higher commercial rents. At the same time, establishments are spending more on wages and employee benefits to retain skilled and experienced workers amid the rising cost of living, The Hindu reports.
Other expenses, including transportation, fuel, supply-chain services, maintenance, equipment, electricity and other utilities, packaging, technology and regulatory compliance, have further affected profit margins. With several expenses increasing together, restaurant owners are finding it difficult to maintain their existing menu rates.
Why AHAR Says A Price Hike Is Needed
AHAR President Vijay K Shetty said restaurants could no longer continue absorbing the entire increase in operating expenses.
“Restaurants have absorbed the rising costs for as long as possible. But with gas, food, rent, labour and logistics costs increasing simultaneously, continuing to absorb the entire burden is no longer sustainable. A 10% to 15% revision in menu prices has become necessary for the survival and viability of the industry,” Shetty said.
Price Revision Not A Move To Increase Profits
The proposed hike could mean higher bills for customers who frequently visit restaurants or order food. However, the association maintains that the decision is aimed at keeping businesses financially stable rather than increasing profits.
“This is not a price increase undertaken for profiteering. It is a necessary adjustment to ensure that restaurants can continue to maintain the quality of food, hygiene, service and employment that our customers expect,” Shetty said.
Will Every Restaurant Increase Prices?
AHAR has clarified that restaurants will not introduce a uniform price hike. Individual establishments will decide the amount and timing of the increase based on their expenses and business requirements.
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The changes are expected to affect dine-in restaurants, quick-service outlets and food delivery services. Although the revised prices may differ from one establishment to another, Mumbai residents could find themselves paying more for restaurant meals in the coming weeks.
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