Major update (15 May 2008): This post stands null and void now, as Delhi Chats have effected a hike of about 25% on all their items.
-------------Original Post----------------------
Almost every eatery in Chennai has effected a price hike recently citing hike in prices of essential commodities. But one eatery in Chennai, Delhi Chats in Thiruvamniyur area, hasn’t increased its rates (with exception of few selected items) since past 2 years
Delhi chats serves north Indian dishes and is quite popular in the locality among north Indians who reside in nearby areas. I noticed recently, the prices of most of the items have remained same since past two years, while almost every other hotel/restaurant has increased the price by few rupees for most of their items.
Is Delhi chats taking a dip in profits? Or do they have an efficient supply chain and inventory management to mitigate the effect of inflation?(May be their own farm nearby which supplies vegetables?) I don’t know. They also door deliver free even for a small order of 30 Rs.
If you’re aware of any other restaurant in your locality which hasn’t increased the prices in past few years drop a comment.
Good!!
ReplyDeleteSuch things are not imaginable in Bangalore. Inflation is there or not prices increase here any way!
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ReplyDeleteInterseting!! Almost all hotels in
ReplyDeleteUdupi have increased prices.
Matap(Saligrama) has increased prices every year.
But Narsimha Bhavan in Gundmi(famous for benne dose) has not undergone such high exclation.
@Bhupesh and Manoj,
ReplyDeleteThanks for sharing your observation about hotels in your cities.
I haven't visited Narsimha Bhavan...will try to visit next time.
Gud Obeservation!!! But I think it is a smart business tactic...
ReplyDeleteIn a place like Thiruvanmiyur there are many young IT Professionals residing how prefer spicy and fast food... once price is not increased it is obvisious that many pals would visit the same place frequently... and by this, shopkeeper's per day sales increases... and in turn he is creating a habit/impression in his customers mind and they would come frequently visit to his shop... After a while he would increase the price and still the customers would come to his shop...
@ Neelam:
ReplyDeletePoint taken, but I guess customers would understand the reason for increase price and wont run away if prices are increased once an year..
There is one topic "Price elasticity of demand" probably measure effect of price hike or discount on demand.
ReplyDeleteRead these two pages.
Economics Basics: Elasticity
http://www.investopedia.com/university/economics/economics4.asp
Pricing and Small Retailers: Questions to Consider
http://retailindustry.about.com/library/uc/be/uc_be_pricing1.htm
Thanks for sharing those useful links
ReplyDeletehi shri,
ReplyDeleteyes, in the main city area we have a tea shop who hasn't increased the prices, but that has affected his quality for sure, other have hiked their prices but maintained their Q & Q.
shekhar
Thanks for sharing your experience shekhar...
ReplyDeleteMaggie has brought down Qty from 100 to 95g, good day biscuit from 100 to 85-90 gms...
Everyone has a strategy to counter inflation..
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ReplyDelete