Floating menus to keep eateries afloat?

Floating menus to keep eateries afloat? (Thinkstock photos/Getty Images)

While hotel associations consider the move, restaurateurs are supporting it in principle but add it's not a practical solution. We find out more

You enter a restaurant, and wait for the menu to be placed before you, so you can browse through it at leisure and decide what you want to order, this could very well be a thing of the past. Restaurant associations are considering opting for floating rates at eateries to combat yo-yoing fuel prices.

Eateries may have to go the Udipi way
Ahar, the umbrella organisation of these establishments had received many suggestions from eateries and bars to tackle rising inflation, increasing costs of ingredients and fluctuating fuel prices that are indirectly affecting the costs of day-to-day operations of eateries and bars. Ahar secretary Shashikant Shetty, says, "Frequent changes in the price of LPG as well as that of petrol and diesel affect costing of restaurant fare, to add to this rising inflation and increasing costs of everyday ingredients is making it difficult to calculate food prices for menus. There was a time when LPG prices would increase once in six months or a year but now it increases every 30 days. Hence, restaurants may have to go for floating rates, which can be displayed on blackboards or LED display boards." Another proposal was to add a certain percentage towards fuel adjustment charge (FAC), to your food bills instead of changing menus and rates every week.

Menu could change every two to three months
Pradeep Shetty , member Executive Committee HRAWI (Hotel & Restaurant Association Western India), adds, "As it's becoming increasingly difficult to budget expenses during to rising costs, many eateries are considering opting for fluctuating rates. In fact, many establishments have already resorted to prices of the day for some items. We are also insisting that our suppliers enter into atleast quarterly agreements (since yearly contracts are no longer feasible) on rates thereby ensuring that there is consistency for minimum period of three months (this would mean that menu validity may not be more than two to three months)."

So, what do restaurant owners think of the move? We are with the associations in principle says, Meldan D'Cunha, owner of a popular Goan eatery, but warns that it's not a feasible move in the long run. He says, "I can understand why restaurant associations are considering opting for floating rates given the escalating costs, but it not a practical move."

AD Singh, the managing director of a popular suburban eatery, agrees and says, "I think its impractical. Most restaurants plan menu pricing for the season after making calculations for the season. I think it would put customers off and don't see it being a reality."

Nikhil Chib, chef and owner of a popular Sobo eatery, adds, "The customer is confused enough already with service tax, vat and service charge. Letting fuel prices and economic turbulence determine the pricing on ones menu is not proper business sense. If your prices fluctuate often, the customer would lose faith in the product and this would result in negative credibility of the restaurant. One should make a calculated estimate and hike their prices once a year if they need to."