The war in West Asia is sending ripples far beyond the battlefield, driving up costs from airfare and transport to kitchen supplies and household essentials. Now, restaurants across Kathmandu are weighing whether to raise menu prices as operating costs surge.

Smaller eateries have already begun increasing food prices.

It has been nearly two months since the conflict—triggered by coordinated military operations by the United States and Israel against Iran—began pushing up global fuel prices and stoking inflation.

Shovan Malakar, owner of Trisara Restaurant in Kathmandu, said operating costs have jumped by 25 percent as prices of imported food items and transportation have soared.

“It is becoming tough to operate the restaurant due to high costs. We cannot update menu prices instantly, but if the situation persists, we will have no other option,” he said. “Even then, we cannot raise prices by more than 5 to 10 percent.”

Malakar said uninterrupted cooking gas supply has offered some relief, as the availability of liquefied petroleum gas (LPG) has helped keep kitchens running. However, customer turnout has dropped sharply.

“If the supply faces any disruption, we will have no option but to shutter down,” he said.

Switching to electricity is not a viable alternative for commercial kitchens. For instance, a dish like fried rice that takes five minutes to prepare on an LPG stove can take up to 15 minutes on an induction cooker.

Uncertainty surrounding the war has left restaurant owners in a dilemma over pricing decisions.

“There are reports that the Strait of Hormuz is opening and closing repeatedly, which creates confusion when deciding on menu prices,” said Malakar. “Once prices are increased, it is difficult to reduce them later.”

US-Israeli strikes targeting Iran from February 28 triggered Tehran's retaliation in virtually blocking the Strait of Hormuz, a key waterway for energy transit.

Restaurant owners say an immediate price hike could further reduce customer flow, making it a risky decision.

During past crises such as the unofficial blockade, some restaurants trimmed menus to include items that required minimal cooking, while others resorted to firewood as cooking gas became scarce and expensive.

Araniko Rajbhandari, owner of ND’s Café, said his focus is currently on minimising losses.

“We are in a wait-and-watch phase, exploring options that will keep the business running,” he said.

“We will absorb the increased operating costs as long as possible. If that becomes unsustainable, we may reduce menu options and operate on a limited menu to manage rent, salaries, and other expenses,” he added.

Rajbhandari said shifting to items that can be prepared using induction—such as pizza and beverages—is one possible strategy. However, unreliable electricity supply remains a challenge for maintaining quality and consistency.

Before increasing menu prices, restaurants must also consider customers’ purchasing power. Rising transport fares and food prices have already strained household budgets, and further increases could drive customers away.

According to the Restaurant and Bar Association of Nepal, around 2,000 restaurants are affiliated with the body, employing approximately 400,000 workers.

Meanwhile, some smaller outlets have started raising prices after finding it increasingly difficult to sustain operations.

Sashi Sah, owner of Altura Coffee, a newly opened café in Tinkune, said his establishment has already raised prices by 5 percent.

“We just opened, and it became very difficult to operate without adjusting prices. We are planning another 15 percent hike this week as costs have risen by around 30 percent,” he said.

Chef Santosh Shah, owner of Mithila Thali and Janakpur Fish House, said he has no immediate plans to raise menu prices despite shrinking profit margins.

“If ingredient costs become unbearably high, we will consider removing certain dishes from the menu,” he said.

Shah noted that around 90 percent of the ingredients used in his restaurants are locally sourced, which has cushioned the impact so far. However, he warned that future price trends remain uncertain.

Restaurant owners remain hopeful that the conflict will ease soon, sparing them from having to pass additional costs on to customers.