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Chicken Price Hike Puts Kerala Restaurants in Financial Crunch

Recently, a street food shop in Malappuram town, renowned for its ghee rice and deep-fried chicken combo, faced a dilemma. In response to the escalating prices of chicken and other essential ingredients, they were compelled to increase the price of their popular dish from Rs 90 to Rs 100. This situation is not unique to that particular eatery; it is affecting numerous restaurants throughout Kerala, impacting their revenue. With chicken prices soaring, restaurant owners are experiencing a significant financial blow. The current hike translates to an approximate loss of Rs 5,000 for every 100 kg of chicken cooked. Consequently, many restaurants are left with no choice but to raise their dish prices in an attempt to mitigate the financial strain.

Previously priced at Rs 140-160 per kilogram, chicken now costs around Rs 260 per kilogram. This drastic increase is burdening restaurant owners who heavily rely on chicken for their specialty dishes. For instance, Thoufeeq Ahmed, the owner of a Turkish restaurant, laments the rise in prices, stating that the cost of chicken used for shawarma has jumped from Rs 175 to Rs 280. Even chicken meant for dishes like alfahm and shawaya has escalated to Rs 250 from Rs 200. Consequently, restaurants specializing in Arabian cuisine are witnessing a revenue loss of around Rs 4,000.

Moitheenkutty Haji, Chairman of the Kerala Hotel and Restaurant Association (KHRA) Advisory Board, expresses the need for price hikes to ensure the industry’s sustainability. He highlights the lack of government support and intervention, pointing out that promises made in the past, like selling chicken at Rs 85 per kilogram, remain unfulfilled. Haji suggests that the government could incentivize young entrepreneurs to invest in the poultry business, offering attractive deals and subsidies to stabilize chicken prices in the Kerala market. However, the lack of interest in such initiatives is disheartening.

Restaurant owners anticipate a potential 10% increase in dish prices if chicken and ingredient costs remain high for an extended period. However, they also anticipate a dip in chicken prices after Bakrid, similar to patterns observed in previous years. This fluctuation provides a glimmer of hope for restaurateurs amidst the current challenging circumstances.

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