Increasing rentals put pressure on profitability

Delhi Restaurants are facing a new challenge with increasing rentals which are shrinking their operating margins to a large extent. Some of the Restaurants in Connaught Place have found it easier to move the venues where the rent could be renegotiated to a much lower value or where the rentals are not so high as this central Delhi hotspot. Some of the Chinese restaurants in Delhi have also founded the additional pressure of increasing prices of meat/non-veg items. Given that most customers order non-veg dishes they have no option but to revise the prices with almost 15% increase on menu prices. The Mexican restaurants in Delhi on the other hand have not had it so bad. Given that the ingredients required are from amongst the staple food grains, they haven’t seen the double whammy of inflation.