Recurring increases in the cost of liquefied petroleum gas (LPG) are putting increasing strain on restaurant kitchens in Dhaka and throughout Bangladesh. LPG costs have doubled in less than three weeks, making already costly goods like rice, chicken, and beef much more expensive.
The timing is especially difficult, according to restaurant proprietors. Fuel shortages and shortened company hours have decreased customer foot traffic, and high inflation has already decreased consumer purchasing. The most recent LPG increases have once again interfered with their financial planning, even though many businesses had already increased menu prices to address growing food expenses.
Essential ingredients have become much more expensive. Prices for premium rice kinds like Basmati and Chinigura have sharply increased, while the cost of steak and chicken has also reached all-time highs. Cooking oil, sugar, and vegetables have become more expensive, further squeezing margins. Only a few things, like onions and potatoes, are still comparatively steady.
The price of LPG, a vital fuel for restaurant stoves, has skyrocketed. A few months ago, a typical 35 kg commercial gas cylinder cost about Tk 3,500; today, it costs between Tk 5,500 and Tk 6,800. For many companies, this has resulted in a nearly 10% increase in production costs.
Despite these demands, the majority of eateries are reluctant to raise menu pricing for fear of alienating already wary patrons. Profit margins are decreasing as a result, with some falling from over 30% to almost 15%.
With almost 481,000 restaurants that employ close to 3 million people and indirectly support millions more, the restaurant industry plays a significant role in Bangladesh’s economy. However, the industry is under a great deal of difficulty due to falling sales and rising prices.
Nowadays, a lot of companies are concentrating on cost-cutting strategies including increasing fuel economy and postponing price increases. However, restaurant owners caution that raising menu pricing by 5–10% would soon become necessary if LPG prices keep rising.
