The recent hike in commercial LPG cylinder prices is set to hit restaurant bills, with the hospitality industry indicating that menu prices may go up.

On Thursday, the Hotel and Restaurant Association of Western India (HRAWI) said eateries and hotels are under pressure as costs rise and business remains weak due to the ongoing West Asia conflict.

Since February 28, when the conflict began, operating costs have increased by nearly 20 per cent, according to the industry body. The rise has come from repeated closures, shorter working hours, changes in menus, and the use of alternative cooking methods.

“Since the conflict began on February 28, the hospitality sector has seen a sharp rise in operating costs driven by on-and-off closures, limited operating hours, menu rejigging, and a shift to alternative cooking methods,” HRAWI spokesperson Pradeep Shetty said in a statement.

At the same time, restaurants have seen fewer customers, adding to the strain.

“Alongside, business volumes have dropped, severely straining overall viability,” Shetty said, adding that these factors cumulatively have pushed operating costs up by roughly 20 per cent.

The latest LPG price hike has made the situation harder, especially for commercial kitchens that rely on gas.

“The latest hike in commercial LPG cylinder prices has added yet another layer of pressure on already squeezed margins. Given this scenario, hospitality establishments may now be left with little choice but to consider an upward revision in menu prices to partially absorb the escalating cost burden,” Shetty pointed out.