Karnataka hotels flag 50-67% menu price hikes after 60% minimum wage revision

Karnataka State Hotels Association warns the state's 60% minimum wage hike will force sharp menu repricing: idli Rs 50→80, masala dosa Rs 80-90→150, veg meals Rs 150-200→250-300, biryani Rs 300-350→500. With unskilled wages now Rs 23,376/month and LPG nearly doubling to Rs 3,152, association seeks separate hospitality classification.

— Source publishedTue, 26 May, 2026, 10:00 IST·First seen Tue, 26 May, 2026, 10:23 IST·Source ET Hospitality

What happened

Karnataka State Hotels Association warns 60% minimum wage revision will force steep menu price hikes across restaurants, with idli, dosa, biryani prices rising

Key facts

  • 60% wage hike
  • Idli Rs 50 to Rs 80
  • Masala Dosa Rs 80-90 to Rs 150
  • Veg meals Rs 150-200 to Rs 250-300
  • Biryani Rs 300-350 to Rs 500
  • Unskilled wage Rs 23,376/month
  • Skilled Rs 31,114/month
  • LPG Rs 1,884 to Rs 3,152

Why this matters

Watch for consolidation opportunities as smaller independent hotels struggle with the cost shock, and evaluate Karnataka exposure in any South India F&B M&A thesis.