Goa’s restaurant industry is facing what operators de scribe as an unprecedented cost crisis, with commer cial LPG prices, electricity bills and fuel costs rising sharply even as customer footfalls decline, pushing many establishments to the brink. Restaurant owners across the State have ac cused the government of relentlessly increasing the cost of essential utilities while offering little relief to a hospitality sector al ready struggling with high rents, labour shortages and shrinking profit margins.
The latest flashpoint is the steep rise in commer cial LPG prices. Restau rateurs say the cost of a 19-kg commercial cylinder has surged from Rs 1,849 barely two months ago to Rs 3,194, dramatically in flating kitchen expenses at a time when businesses are witnessing a seasonal dip in demand. “We were expecting gas prices to come down, but the government has contin ued to increase the prices,” said a Panjim-based restau rateur. “We shifted more of our operations to electrici ty to escape the LPG crisis, but now the electricity bills have also gone through the roof.” The restaurateur said his latest electricity bill touched nearly Rs 30,000, almost double his usual monthly expenditure of Rs 13,000 to Rs 16,000.
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The spike in power bills has triggered widespread anger among restaurant operators, many of whom claim they have been sad dled with hefty penalties and unexplained additional charges. “Many of us were strug gling to recover from pre vious financial setbacks. Now these inflated elec tricity bills have added another burden,” said Mar gao-based restaurant own er Prashant Borkar. “The penalties imposed are un reasonable and have left restaurant owners worried about their survival. The crisis has been compounded by irregular supplies of commercial LPG cylinders.
Several operators claim they are being forced to repeatedly follow up with distributors even as prices continue to rise. “On one hand, we are not getting an adequate supply of commercial gas cylinders and on the other hand the prices keep rising,” said hotelier Rosario Dias. “We are suffering losses from both sides. Without gas and electricity it is im possible to run a restaurant efficiently.” Beyond utilities, restaurant owners say they are being hit by escalating fuel prices, which have increased trans portation costs and contributed to a surge in food prices. “Vegetable prices have gone very high. Commodity pric es have also shot up. Normally during this time chicken prices come down, but this year I am paying around Rs 230 a kg compared to about Rs 160 earlier,” the Panjim restaurateur said. The mounting costs come amid another challenge unique to Goa’s hospitality sector — soaring commercial rents. “The rentals too in Goa are very high.
Panjim rentals have become like rentals in Mumbai. Many restaurants have already shut down because of the high rentals,” he said. Industry stakeholders argue that the cumulative effect of rising LPG prices, soaring electricity bills, increasing fuel costs, expensive rentals and labour shortages is mak ing it impossible for smaller establishments to survive. Adding to their woes are commissions charged by on line food delivery platforms, which restaurant owners claim consume between 30 and 40 per cent of their earn ings. “Big brands pay less but smaller operators end up pay ing more. The platforms have not reduced their charges. They have increased them,” the restaurateur alleged. Many establishments are also struggling to find work ers, forcing owners to spend heavily on staff accommoda tion as migrant labour from States such as West Bengal and Assam has not returned in sufficient numbers.
The squeeze is now being felt on dining tables across Goa. Restaurateurs say they have little choice but to raise menu prices, even as customers increasingly cut back on discretionary spending. “The number of customers coming out to dine has gone down. For the last few days our restaurant has been com pletely empty,” the restaurateur said. Industry representatives warn that unless the govern ment intervenes by reviewing commercial LPG pricing, addressing concerns over electricity billing and easing op erational costs, more restaurants could downsize or shut down altogether.
