HYDERABAD: Restaurants in Hyderabad are finding it expensive to serve complimentary items such as onions and salads amid soaring prices of essential commodities. As vegetables, pulses and cooking oil become costlier, several eateries have raised menu prices, while others have stopped serving complimentary items altogether.
Many eateries have increased the prices of individual dishes by Rs 10–Rs 15 to offset higher operating costs. The impact, sources said, is most visible in thalis, with South Indian thalis becoming costlier by Rs 70 and North Indian thalis by Rs 80.
Two weeks ago, tomatoes were sold at Rs 50 per kg at roadside markets. Now, the same markets are selling them at Rs 70–Rs 80 per kg. The price rise has reportedly been driven by prolonged heat, water shortages, crop damage and lower arrivals in the markets.
Similarly, onion prices have surged from Rs 50 per kg to Rs 80–Rs 100 per kg. Wholesale prices at markets, particularly Malakpet, have risen to Rs 45,000–Rs 52,000 per tonne, compared with Rs 18,000–Rs 20,000 in July 2026.
The price of the “all-you-can-eat” thali, a popular choice among Telugu diners, has increased from Rs 200 to Rs 250–Rs 280. Meanwhile, the question remains whether drought, inflation and El Nino are to blame, or whether the trend reflects the confusion surrounding what Union Finance Minister Nirmala Sitharaman calls “thalinomics”.
Quality worries surface
“Raw material prices are not just shooting up; they are shooting up exponentially. Menu revisions could happen again over the next eight to 10 days. The proposed hikes could be anywhere between 10% and 15% of the current price range,” said an official from the Telangana Hotel Association.
The rising costs have also raised concerns among customers about food quality, with some fearing that eateries may compromise on freshness or serve stale food to keep expenses in check.
“Reports of raids at many restaurants and the rising costs of essentials are now making us cautious about eating out. Restaurants or hotels, though not intentionally, may cut down on quality and quantity to protect their margins and keep food fresh,” said Joshua, a foodie.
Vijay K Shetty, president of AHAR, said, “The additional expenditure has become increasingly difficult for restaurants to absorb while maintaining food quality and service standards.”
Price hikes on the menu
Sources said restaurants were preparing for menu price hikes of at least 12–15%, with increases on some items potentially reaching 18%.
“While restaurants typically revise prices in January to account for inflation, the industry may bring forward the exercise to November this year,” Vijay Shetty said. He added that drought was one of the major factors behind the expected increase, along with the impact of the Iran-US war on costs.
“Menu price revisions have therefore become necessary to partially offset these escalating costs and ensure that hotels can continue maintaining food quality, hygiene standards and service excellence,” the official said.
Water scarcity to push up costs
Sources said water shortages could further push up operating costs for smaller establishments. Restaurants with limited storage capacity may have to depend on private water tankers, adding to their expenses.
“If water supply is cut off for a day, smaller restaurants without adequate storage will have to arrange for tankers. They may have storage tanks with a capacity of only 3,000 to 5,000 litres and would therefore have to pay for tanker water,” a Korean hotelier said.