Tomato Price Hike, Restaurant Owners On How It Affected Business

Tomatoes are one of those kitchen staples that most of us have gotten used to taking for granted. But over the last few months, tomatoes have become the centre of attention as prices have been climbing to unprecedented heights. Thanks to the extreme weather fluctuations early in the growing cycle along with multiple bouts of disease, tomatoes quickly rose to anywhere between Rs. 150 and Rs. 250 per kilo across the nation, forcing consumers to either shell out big bucks or skip buying them altogether.

But while most people have found ways to cook around this issue, in the restaurant industry, the story is a little different. The failing tomato crops in India have cast a long shadow over the Indian restaurant business, challenging owners to find creative solutions to cope with the scarcity and high prices of this essential ingredient. 

Slurrp caught up with some restaurant owners, culinary directors and experts from across India to find out exactly what the ripple effects of this tomato price hike have been and how different places are adjusting until it’s resolved. 

Video Credits: Ambra Torelli/YouTube

Amar Singh - Owner, Chunkies, Mumbai

“What's interesting is that the effects vary depending on who you talk to. Let's take a mid-range burger chain in Mumbai, for instance. They've got a dozen or more branches, and they've decided to drop fresh tomatoes from their burgers. Now, you might think this is all about the fluctuating prices, but it's not quite that. They've got solid contracts with their vendors that keep their costs steady.

“The real problem is getting their hands on good quality fresh tomatoes. So, they're sticking to canned goods to keep the quality and quantity of their sauces consistent.”

“The folks really feeling the heat, surprisingly, are on two opposite ends of the spectrum. On one hand, you've got these high-end restaurants where the chefs insist on using daily, top-quality produce to make things like Neopolitan pizza sauce and other gourmet dishes. On the other hand, you've got the small mom-and-pop shops that rely on whatever they can get from the daily market to whip up meals for local customers and folks ordering from apps like Zomato. It's these two groups that are really struggling to navigate through this tomato conundrum.”

Navdeep Singh Sethi - Co-Founder of Klap & Khi Khi

“Customer experience and ingredient quality are a top priority for us,” says Singh, “Although the prices of tomatoes are sky rocketing , I believe these fluctuations are temporary and we are not passing on these costs to the guests. We have a set vendor base with annual supply agreements in place. So for now, we don’t intend to change anything until the situation is beyond control.”

Vishal Anand - Founder, SAGA, Gurugram

“Yes, the burden of the rising price of tomatoes is there but we are not cutting short on the usage of tomatoes. We are using tomatoes as much as required in the recipe. These fluctuations are part of the economy and we don't believe in passing it on to the customer.” says Vishal, “We and the vendors have an understanding and bear the brunt of hiked prices. We have yearly tie-ups with most vendors/suppliers but we also do understand the need of the hour and are flexible in certain situations”

Chef Ashish Singh – Culinary Director, Cafe Delhi Heights

"Amidst the tomato woes, restaurants find themselves grappling with soaring prices and a restricted array of choices! As a chef at Cafe Delhi Heights, we understand the predicament all too well. Tomatoes, a staple ingredient in our culinary repertoire, have become a challenge to procure at reasonable rates. Despite this setback, we remain dedicated to delivering exceptional dining experiences to our patrons.” says Ashish, “We strive to navigate these challenging times by sourcing the finest ingredients available, exploring creative alternatives, and crafting delectable dishes that continue to tantalise taste buds. At Cafe Delhi Heights, we refuse to compromise on quality or compromise on our commitment to providing a memorable dining experience, even amidst the storm of rising tomato prices."