Pune: Mid-sized and premium restaurants are bracing for a rise in operating costs from Oct 15 after the 0.4% merchant discount rate (MDR) is introduced on eligible UPI payments above Rs 2,000, prompting some to consider raising menu prices to absorb the added expense.Restaurateurs said it might be difficult to absorb the added charge as digital payments made up 70-80% of transactions, even as govt advised merchants not to pass on the levy to customers. “Restaurant operating costs have surged in recent months. LPG cylinders, raw material and compliance expenses are all higher. A 0.4% MDR adds Rs 8 to a Rs 2,000 bill. We are assessing the impact and possible options,” a Kothrud restaurateur said.Some owners indicated that menu prices could see a marginal increase. “We may have to revise menu rates from next month,” a restaurant owner from Hinjewadi said.Others are exploring ways to encourage cash payments. “Most customers pay via UPI now, even for small purchases. With average bills ranging between Rs 2,000 and Rs 3,000 for two people, we may need to incentivise cash payments to offset the added cost,” a Camp-based restaurant operator said.Restaurants in areas like Koregaon Park are considering festive-season promotions linked to cash payments. “We may offer small freebies on bills above Rs 2,000 paid in cash. The industry is already under pressure, so we need to manage the additional expense carefully,” a Koregaon Park-based restaurant owner said.Customers, however, are divided on the issue. Wanowrie resident Rishi Savla said MDR was unlikely to significantly affect diners, arguing that restaurant pricing was already high. “A pasta at a decent eatery can cost around Rs 600. A small MDR charge will not make much of a difference,” he said.Lullanagar resident Sangeeta Dedhia disagreed, saying any menu revision would effectively shift the burden onto customers. “Many restaurants have already increased prices over the last few months. Raising rates again because of MDR would not be fair,” she said.
