Restaurant chains to hold menu prices through festive quarter despite UPI MDR and food inflation
Burma Burma, The Beer Cafe, Kylin and other restaurant operators are prioritising festive demand, absorbing a proposed 0.4% UPI MDR on transactions above ₹2,000 and input-cost pressure rather than passing costs to diners. Sagar Ratna is an exception, having raised prices 5% after two years.
What happened
Burma Burma · Indian restaurant chains expect strong festive-quarter demand and plan to absorb the proposed UPI MDR levy and input-cost inflation rather than
Key facts
- 0.4% MDR levy on UPI transactions above ₹2,000
- 5% price increase by Sagar Ratna after two years
- 8.4% year-on-year food and beverage services inflation in August
- 22.2% rise in UPI transactions
- 6% food inflation in August
What changed
Indian restaurant chains expect strong festive-quarter demand and plan to absorb the proposed UPI MDR levy and input-cost inflation rather than raise menu prices, seeking to protect consumer demand despite already thin margins.
Why this matters
Hold menu pricing through the festive quarter where possible, using volume, mix and operating efficiencies to absorb payment and food-cost pressure without jeopardising footfall.
What to watch
- Implementation date, exemptions and final structure of the proposed 0.4% UPI MDR for transactions above ₹2,000.
- Food inflation trends, especially dairy, vegetables, edible oils, poultry, imported ingredients and beverages.
- Festive-quarter same-store sales growth, weekend reservations, average spend per cover and delivery-versus-dine-in mix.
- Restaurant-level EBITDA margin commentary and evidence of reduced promotions or portion/menu changes.
- Competitor pricing actions, particularly whether large chains follow Sagar Ratna with broad 3-5% increases.