A shortage of commercial LPG cylinders, stemming from the Middle East war's impact on supplies and a government prioritization of domestic LPG, is forcing thousands of restaurants across India to temporarily close or reduce their menus. Cities like Bengaluru, Pune, Chennai, and Mumbai are particularly affected, with thousands of eateries shut, impacting the entire food service industry.
This widespread closure of restaurants is leading to a significant drop in orders for major food delivery platforms like Zomato and Swiggy, which also affects gig workers. While some restaurants are attempting to switch to alternatives like induction cooking, this is not a viable solution for all cuisines, and supply chain issues for items like bakery products are compounding the problem.
The National Restaurant Association of India (NRAI) has formally raised concerns with the government, seeking clarity on sustained gas supplies as the situation is expected to worsen in the coming days.
Main Topics: Commercial LPG cylinder shortage, restaurant closures, impact on food delivery platforms, industry response and government appeal, regional severity of the crisis.
Food delivery platforms like Zomato, Swiggy, and Ownly are likely to see a drop in orders as thousands of restaurants temporarily ceased operations across the country amid limited cooking gas supplies due to the Middle East war.
This, in turn, is affecting food delivery platforms. âBengaluru and Pune are the worst affected as of now,â said a senior executive of a food delivery service. âRestaurants are running out of gas. Delhi-NCR, Mumbai, and Kolkata are relatively better for now but may deteriorate in a day or two.â
On Saturday, the National Restaurant Association of India (NRAI) wrot to the government raising concerns about a shortage of commercial LPG cylinders and sought clarity on sustained supplies.
Speaking to ET, NRAI president and Wow Momo founder Sagar Daryani said that restaurants are now looking at alternatives like induction cooking, but that may not work for all.
Multiple restaurant and cloud kitchen owners across Bengaluru, Pune, and Delhi-NCR told ET that they have ceased operations or reduced the items on their menu.
ET has reached out to Swiggy, Zomato and Rapido's Ownly for comments.
Kitchens closed
Hotel associations in Bengaluru and Chennai have put out official notices stating that thousands of restaurants across the cities have been forced to close their doors.
âI have already shut down one of our outlets in Pune and can operate the other only until the first-half tomorrow,â said Saili Jahagirdar, owner, Zillionth Bistro. âOur vendors are not taking orders and our staff will be affected if things donât normalise soon.â
Jahagirdar, who is also the Pune chapter head of NRAI, said that about 10,000 eateries including quick service restaurants (QSR) and cloud kitchens have shut their operations today or are running at half capacity.
âThis is impacting the entire food service industry. Order numbers are dropping for food delivery platforms and thatâs also affecting gig workers,â she said.
According to a food delivery firm executive, around 1,000-1,500 establishments across Mumbai and Chennai have closed operations and things are likely to worsen in the coming days.
Cloud kitchens could be less impacted, though, since they use induction for cooking in most cases. However, they depend on vendors for bakery products like breads, buns, and more, which are already reeling under the shortage.
âOur bakery vendor has told us that he canât take orders from us for Thursday because he doesnât have cooking gas left for use beyond tomorrow,â a restaurant owner told ET.
The food industry disruptions come as India faces a supply shortage of liquefied petroleum gas (LPG) and the government has halted the distribution of commercial LPG cylinders to prioritise domestic supplies. According to restaurant owners in the Delhi-NCR region, the price of LPG cylinders are shooting up as some people are selling them at black market rates.
This, in turn, is affecting food delivery platforms. âBengaluru and Pune are the worst affected as of now,â said a senior executive of a food delivery service. âRestaurants are running out of gas. Delhi-NCR, Mumbai, and Kolkata are relatively better for now but may deteriorate in a day or two.â
On Saturday, the National Restaurant Association of India (NRAI) wrot to the government raising concerns about a shortage of commercial LPG cylinders and sought clarity on sustained supplies.
Speaking to ET, NRAI president and Wow Momo founder Sagar Daryani said that restaurants are now looking at alternatives like induction cooking, but that may not work for all.
Multiple restaurant and cloud kitchen owners across Bengaluru, Pune, and Delhi-NCR told ET that they have ceased operations or reduced the items on their menu.
ET has reached out to Swiggy, Zomato and Rapido's Ownly for comments.
Kitchens closed
Hotel associations in Bengaluru and Chennai have put out official notices stating that thousands of restaurants across the cities have been forced to close their doors.
âI have already shut down one of our outlets in Pune and can operate the other only until the first-half tomorrow,â said Saili Jahagirdar, owner, Zillionth Bistro. âOur vendors are not taking orders and our staff will be affected if things donât normalise soon.â
Jahagirdar, who is also the Pune chapter head of NRAI, said that about 10,000 eateries including quick service restaurants (QSR) and cloud kitchens have shut their operations today or are running at half capacity.
âThis is impacting the entire food service industry. Order numbers are dropping for food delivery platforms and thatâs also affecting gig workers,â she said.
According to a food delivery firm executive, around 1,000-1,500 establishments across Mumbai and Chennai have closed operations and things are likely to worsen in the coming days.
Cloud kitchens could be less impacted, though, since they use induction for cooking in most cases. However, they depend on vendors for bakery products like breads, buns, and more, which are already reeling under the shortage.
âOur bakery vendor has told us that he canât take orders from us for Thursday because he doesnât have cooking gas left for use beyond tomorrow,â a restaurant owner told ET.
The food industry disruptions come as India faces a supply shortage of liquefied petroleum gas (LPG) and the government has halted the distribution of commercial LPG cylinders to prioritise domestic supplies. According to restaurant owners in the Delhi-NCR region, the price of LPG cylinders are shooting up as some people are selling them at black market rates.
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