Price hike, job loss and limited food menu: How the LPG shortage is squeezing Indian restaurants

Days into the shortage of commercial LPG cylinders in the country, pan-India restaurants have adapted multiple ways to stay afloat. Talking to Live Mint, Wow Momo founder Sagar Daryani predicted price hikes, restaurant shutdowns and even job losses if the situation persists.

Job loss and shut downs of restaurants

“You will see a lot of mortality rate in the food business industry. There will be job losses happening if this goes on,” he warned.

Daryani, who is the president of the National Restaurant Association of India (NRAI), said more than 100 restaurants have been shut in Bengaluru. Seeking relief from the government, he told us, “There are a lot of people who depend on the restaurant. These are mostly people from urban cities, bachelors or even those who live in hostels and paying guest accommodations. Hence, restaurants must fall under essential services.”

The ongoing crisis erupted from the severe disruption to key import routes, including the very crucial the Strait of Hormuz, due to ongoing war in the Middle East. With India relying on imports for more than 60% of its LPG, shipping bottlenecks due to the conflict have led to supply shortages, priortising domestic over commercial use.

Affecting all eateries across India, especially metro cities, Daryani shared what he is ensuring for his venture.

Alternative to LPG cooking

Revealing how his Wow Momo and Wow China franchise is coping up with the situation, Daryan said, “We have resorted to alternative energy.”

However, converting to electric cooking isn't easy. “50 per cent of our restaurants have worked on electricity since the beginning. However, the rest use LPG. We will now convert to induction cooking or an electronic fryer. In a lot of locations, we might not have adequate load to use electricity. We are trying to recreate a few dishes using a microwave," he added.

Ankit Gupta, co-founder of the popular pan-India restaurant Burma Burma, shared that they are reimagining and focusing on the selection of salads and desserts, which are already crowd-pleasers. Now, best-sellers like Khao Suey and Samosa soup are being made on induction.

“We have a mix of PNG (Piped Natural Gas) and LPG across our outlets in India. There are 5 restaurants, I think, where we use LPG. We are identifying alternate ways. The stock is sufficient for now,” Gupta said.

Revamped food menu

Down South, the award-winning restaurant, Kappa Chakka Kandhari shifted to electric induction stoves and other equipment like steamers, fryers and wood fire stoves. Chef Regi Mathew revealed, “We have cut short our regular menu to 50% and have temporarily stopped offering our tasting menus.”

The branches of the eatery in Bengaluru and Chennai now only offer a limited à la carte menu.

Price hike debate among restaurateurs

Amid the search for alternative fuel, restaurants predict a temporary price hike.

While a premium spot like Kappa Chakka Kandhari confirmed to maintain the prices, a budget-friendly brand like Wow Momo might increase the food price as a last resort.

“We don't want to profit from this. However, our cost will go up because of electricity. We have to cover the cost, but we haven't thought about it,” clarified Daryani.

On the other hand, Burma Burma which falls under the mid-to-high-end category, might consider a price change if fuel costs shoot up amid the war.

“There hasn't been a big increase in cost. We may have to consider in the future if the prices of gas increase,” said Ankit Gupta.