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Chennai hotels and restaurants are doing superb business now, but are they getting enough profits?
Posted on: 26/Oct/2021 9:42:34 AM
Normalcy has returned back and in Chennai and in Tamil Nadu the hotel business has been superb now. It is learnt that the sales have increased and sales have reached almost how it was before the Covid-19 infection pandemic struck. The edible oil, diesel and gas prices have shot up unimaginably now and due to this the profits of the hotels are not high now when compared to 2018-19.
The rise in the prices has led to poor profits now and profits have gone down by 50%. This was as per Mr. Rajkumar of Balaji Bhavan hotel in Dindigul. It is now said that the hoteliers have largely been taking the blow and have not passed on the impact to the customers.
Persons visiting Vasanta Bhavan hotels would be in for a surprise as the hotels have increased the rates by 5% for North Indian thali or side dishes etc. It was later highlighted by Mr. N. Ravi, owner of Vasanta Bhavan chain of hotels said that the rates of south Indian dishes like idli, dosa have not increased. He added that the cost of tea and coffee has become more but the hoteliers have not increased the cost.
Point to be noted is that in 2020 the commercial gas cylinders were sold for Rs 1249 and now they are sold for Rs 2040 which is a hike of 65%. Mr. Ravi concluded that inspite of the increase in the prices of the commercial gas cylinders his group of hotels have not hiked the price as it would affect the customers.
According to Mr. K.T. Srinivasa Raja of Adyar Anandha Bhavan chain of restaurants it was clear that the festival season has given a fresh life for the hotel industry. He expressed his happiness regarding the sales and said it has gone up by 15percent now. He mentioned that there are now plans to reopen the restaurants at Koyambedu that were closed during the Coronavirus pandemic.
Point is that as the prices of diesel, cooking oil and gas increased the labour became cheap and it has reduced the impacts on the profits.
