17 January,2011 08:18 AM IST | | Debarati Palit
Restaurants to increase alcohol prices; blame rising cost of transportation
Get ready to shell out more to get your spirits high. After food, it is the turn of alcohol prices to go up, thanks to rising transportation costs.u00a0
The prices could go up by 15 per cent and would depend on the discretion of restaurant owners. Sources in the restaurant industry said they had no option but to increase the prices.
Ganesh Shetty, the president of Pune Restaurant and Hoteliers Associations, said prices would definitely go up but a formal decision had not been taken yet. "It's 100 per cent sure that prices will have to go up because of high transportation costs or how will restaurant and night club owners manage? There is no other way they can manage their business," said Shetty.
'Can't bear losses'
Owners maintain that it is a difficult job to run the restaurant business. Entertainment tax, sales tax, vegetable prices, transportation costs are taking a toll on the business.
An owner of a popular lounge bar near ABC farms said, "Though I am yet to decide on the new prices, but we will definitely increase it within a few days. It's otherwise difficult to manage the business. If we sell a pint of beer for Rs 120, it's not enough to take care of sales tax (which is 12 per cent), transportation costs and entertainment tax."
Imran Sethi, owner of Tertulia's at Koregaon Park, said for the time being they would absorb the cost and cut down on the profit. "We are studying the market but looking at the high prices, we cannot cut down on the profits permanently and will have to ultimately increase the prices. For how long can we bear the losses?
Some places have already increased the prices of alcohol. They feel with the new prices they can take care of the transportation cost.
Govind Malipedi, assistant manager of Trikaya Restaurant, said they had already increased the prices of alcohol. "We increased the prices just a month ago. The price of cocktail has been increased from Rs 350 to Rs 400," Malipedi said.
