Hotel eateries struggle to maintain prices as logistics and ingredient costs rise

MELAKA: Hoteliers here say price increases at their restaurants may be unavoidable following the implementation of the targeted diesel subsidy in the peninsula from Monday (June 10).

Malaysian Association of Hotels (MAH) Melaka chapter chairman Khairulnizam Kasim said ingredients will cost more as some establishments source ingredients from overseas.

"Logistics is an important part of our business and hoteliers in the state will be forced to increase prices in the wake of the rise in diesel price," he said on Tuesday (June 11).

Costlier logistics would contribute to higher kitchen operating costs, he added.

However, Khairulnizam said hoteliers are working on mechanisms to keep prices close to current levels.

This is because the hotel sector is stuck between trying to attract customers and having to cope with the diesel price float, he said.

"We are just recovering from losses inflicted by the Covid-19 pandemic as well as a dwindling number of guests because of uncontrolled short-term rental accommodations," he said.

Furthermore, cooking expenses have also skyrocketed as the cost of essential items has increased, he added.

"In a nutshell, the imbalance between expenditure and revenue has impacted hotels here.

"However, we have to also look into avoiding sudden and steep increases in the prices of our menus as this can drive customers away," he added.

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