The ongoing LPG Crisis has triggered a significant 10-20% drop in peak-time orders across India’s restaurant and food-delivery sectors. As of Sunday, March 22, thousands of eateries have been forced to trim their menus, shorten operating hours, and even temporarily shut down as commercial cylinder supplies remain severely restricted due to the Strait of Hormuz blockade.
Why Orders Are Dropping: The “Crisis Menu” Effect
The decline in peak-time orders isn’t due to a lack of customer demand, but rather a “forced slowdown” by kitchens trying to stay alive on limited fuel.
- Menu Trimming: Many restaurants have removed “high-gas” items—such as dosas, parottas, Asian wok-fried dishes, and deep-fried starters—which require constant high flames.
- Limited Hours: Establishments are closing during “slack” hours (e.g., 3:00 PM to 6:00 PM) to conserve gas for the dinner rush.
- Service Delays: To save fuel, kitchens are running fewer burners simultaneously, leading to longer wait times that have discouraged approximately 15% of regular diners during peak periods.
The Impact on Food Delivery (Cloud Kitchens)
Cloud kitchens, which rely 100% on delivery orders, are reporting the sharpest declines.
- FreshMenu & Rebel Foods: Industry insiders report that some units are seeing 20-25% less business because they cannot guarantee delivery times or have had to pause “energy-intensive” menu categories like biryanis and pizzas.
- Staffing Cuts: Staffing firms like CIEL HR note that since kitchens are running fewer shifts, daily-wage helpers and delivery boys are seeing a direct 20% cut in working hours.
Comparison: Survival Strategies Across India
| City | Primary Impact | Strategy Adopted |
| Bengaluru | 90% of PGs & Hotels hit | Paused dosas/chapatis; shifted to induction. |
| Pune | Small eateries shutting down | Moving to firewood; focusing on “one-pot” meals. |
| Hyderabad | Haleem & Biryani operations at risk | Monitoring gas use with “LPG Supervisors.” |
| Chennai | 30% of restaurants closed | Shifted to wood-fire for lunch; gas reserved for dinner. |
The Government’s “50% Lifeline”
In a bid to arrest this decline, the Ministry of Petroleum announced yesterday (March 21) that commercial LPG allocation will be hiked to 50% of pre-crisis levels, effective Monday, March 23.
- The Priority Rule: This new 20% boost must be given to restaurants, dhabas, and food processing units first.
- The PNG Condition: To get this extra gas, restaurants must apply for a Piped Natural Gas (PNG) connection and show they are ready to transition away from cylinders.
- Refinery Boost: Domestic LPG production has been ramped up by 40% to meet this new commercial quota, as imported arrivals from the Gulf have fallen by 30% weekly.
Looking Ahead: The “Electric” Pivot
With commercial LPG prices up by ₹302.50 since January 2026, the industry is undergoing a permanent shift:
- Induction Surge: Sales of commercial-grade induction cooktops have spiked by 300% in March.
- Hybrid Kitchens: Newer cloud kitchens in Bengaluru are being designed as “electric-only” to avoid future geopolitical fuel shocks.
