As the ongoing tensions in the Middle East between Israel and Iran, find route in India through the drastic fall in the commercial LPG supply, numerous big players across the hospitality/F&B industry have indicated staff layoffs, cuts in menus, salary reductions, and difficulty in continuing operations. A recent shocker came to Delhi when among other spots across the city, Sita Ram Diwan Chand, one of Delhi’s most loved chole bathure spot, temporarily shut shop owing to the shortage and rising prices of gas cylinders.
Industry bodies have also warned that if supply does not stabilise soon, large-scale temporary closures could follow, with some cities already facing significant shutdowns and reduced services, including in Bengaluru, Mumbai, Chennai, and Delhi.
While smaller business owners including those running dhabas, canteens, and food stalls, are facing grave consequences, bigger players are also struggling to keep doors open. Reports from Chennai suggest that the LPG crisis has led to the closure of over 200 hotels in the city.
The National Restaurant Association of India (NRAI) has warned that 50-60% of restaurants could shut down within 2-3 days if commercial LPG supply is not restored. In the of reduced supply, black-market prices for commercial LPG cylinders have surged dramatically, in some cases doubling or tripling, further squeezing already struggling businesses.
The global trigger that has disrupted LPG shipments through key West Asian routes, particularly the Strait of Hormuz, remains a constraint on supply. This has resulted in what experts are calling India’s worst gas crisis in decades.
New Delhi has invoked emergency powers, directing refiners to maximise LPG production after Indian Oil Corporation Ltd. raised the price of a standard 14.2 kg household LPG cylinder by 7% in Delhi. Pertinently, this is the first increase of its kind in about a year.
Closures And Reduced Operations Across Cities
While menu cuts are becoming increasingly widespread, shutdowns, both temporary and partial, are concerning those in the industry.
In Kolkata’s office districts, over half of some food stalls have shut down, while others are operating with drastically reduced offerings. Iconic outlets like Arsalan and Chowman in West Bengal are also reporting menu cuts and potential shutdowns, as they shift to traditional cooking methods due to faltering LPG availability.
Meanwhile, in Bengaluru, about 25 restaurants and eateries have already closed, while others prepare for the crisis with inflated prices as supplies dwindle. In fact, a recent post on X expressed concern about a local restaurant charging a 5% “Gas Crisis Charge” for a meal consisting solely of a beverage.
Predictions indicate a 50%-60% closure of eateries if the situation does not improve in a few days.
The situation in Delhi is also deteriorating, as large corporate gatherings and group parties are taking a back seat in restaurant calendars. Bigger restaurants, particularly in the capital’s Connaught Place area, are reducing their operations to keep up with dwindling gas supplies, with menu cuts becoming commonplace depending on LPG usage.
A similar situation is brewing in Mumbai and western India, with temporary closures affecting numerous eateries across the region. In fact, 20% to 40% of restaurants in Mumbai have already announced a temporary shutdown as of March 16.
Highway dhabas are among the worst hit. In parts of Madhya Pradesh, many have cut tawa-based items entirely and reduced operations, leading to steep revenue losses and fewer food options for travellers. These vendors have reportedly turned to alternatives such as coal, firewood, or kerosene stoves to keep their businesses running.
Menu Cuts Are Becoming the New Normal
One of the most immediate impacts of the crisis is visible on menus. Across India, restaurants are eliminating fuel-intensive dishes and simplifying offerings to conserve gas.
In Kolkata, popular slow-cooked dishes such as biryani, rezala, rogan josh, and dal makhani have been pulled off menus because they require sustained high heat. Even items like rumali rotis and baked desserts are being cut or outsourced.
Similarly, in most metro cities across India, eateries are prioritising quicker, low-gas dishes, shifting towards vegetarian options or meals that require less simmering time. Some kitchens are soaking lentils in advance or limiting non-vegetarian preparations like mutton, which demand longer cooking durations.
At a broader level, the National Restaurant Association of India has advised restaurants to adopt “crisis menus”. These focus only on essential, faster-cooking items while temporarily suspending complex dishes.
The shift is also having ripple effects beyond kitchens. In cities like Gurugram, increased reliance on electric cooking has significantly raised power consumption, leading to more concerns about pressure on infrastructure if the crisis persists.
While the government has taken steps to prioritise domestic consumption and increase refining output, commercial users remain under strain, with limited access to cylinders, rising prices, and no clear timeline for when normalcy is to return.
Read more: The Effects Of The Global Energy Crisis Reach India’s Restaurants
