BENGALURU: Following the recent hike in milk and coffee powder prices, several hotels across Bengaluru have revised the rates of tea and the city’s beloved filter coffee, increasing them by at least Rs 3-5. A cup that once cost Rs 15 is now priced at Rs 18, while in some places, prices have jumped from Rs 20 to Rs 25.
Hoteliers told TNIE that they were left with no option but to raise beverage prices, as the cost of key inputs continued to surge. The price of coffee powder has seen a steep hike in less than three months, with some varieties now costing between Rs 1,500 and Rs 2,000 per kg.
Even commonly used brands like Arabica, which were priced at Rs 580 per kg earlier, have now shot up to Rs 730 per kg. In addition, milk prices have gone up by Rs 4 per litre, and electricity bills have also risen sharply, adding to the overall burden on restaurants, said hotel owners.
“The price hike has been a major blow. We had been absorbing the losses for some time, especially when we were unsure whether milk prices would also go up but after the recent increase in milk rates, we were left with no choice but to shift the burden onto customers,” said Swaminand Y from IDC.
“We are feeling the pinch as much as our customers. We tried to minimise the impact but with costs rising across the board, we had no choice but to increase prices. Customers are cutting back, and we are experiencing fewer walk-ins for quick coffee breaks,” Abhimanyu from Hunkal Coffee said.
Amidst the price hike, hoteliers are getting squeezed from both ends-- customers are questioning the increased rates, arguing that a cup of tea or coffee barely requires 50 ml of milk. “What they don’t see is the bigger picture — everything from raw materials to electricity bills has shot up. Yet, despite repeated appeals, there’s been no intervention from the government,” he added.
When TNIE reached out to customers they mentioned that the recent price hike will force them to reduce the number of cups of coffee they consume daily. They also pointed out that the prices of both instant and filter coffee powders have gone up by at least Rs 50, further straining their household budgets.