India’s food services sector is facing a growing crisis as LPG supply disruptions—linked to tensions in the Middle East and transit issues through the —begin to impact daily operations.
What started as a supply-chain problem has now put restaurants, caterers, and street vendors under serious pressure. Many fear layoffs, salary cuts, and even shutdowns if the situation continues. Although the government has assured that supply will improve, people in the industry say the situation on the ground is still uncertain, with many struggling each day to get enough fuel to keep their kitchens running.
Smaller Businesses Hit the Hardest
Small restaurants, street food stalls, caterers, and cloud kitchens are the worst affected. Some have already shut down or reduced their operations.
, founder of , told TOI, “If restaurants and eateries are unable to do business, the first ones to get hit will be people down below.” He added, “While we hope supplies improve soon, currently, the situation is dynamic and we don’t know how things will pan out. At the ground level, particularly for local and street-side eateries, things are much worse.”
from the said delays are increasing. “Suppliers are telling us to wait for 15 days. The on-ground situation is very challenging and it’s actually worsening for a lot of our members.”
In cities like , suppliers are giving priority to essential services like hospitals. “Our members are still being told by agencies and suppliers that the supply is not for them but for other priority sectors like hospitals. Smaller restaurants have already shut down and they are not operational in Pune,” said .
Street vendors in are also struggling. Many stalls are either closed or running for shorter hours due to lack of fuel.
Layoff Concerns Grow
The shortage is now affecting profits, menus, and working hours. of the said, “Smaller players which cannot bear the loss will see job cuts and the bigger players may bear the brunt for a while.”
Workers, especially those in daily wage roles, are already feeling the impact. said, “For instance, if a restaurant has to close shop or run for fewer days in a week, they will not be employing helpers, local delivery boys, etc., who typically get paid Rs 500-700 daily. This segment, which accounts for the largest number of people employed, is already seeing an impact.”
Cloud kitchens are trying to find alternatives, but it is not easy. of said, “At a central level, we are trying to move to firewood cooking, bring in induction, electric stoves, etc. But one can’t just move seamlessly to electric equipment given that summer months will also see power cuts.”
She added, “One can’t even plan for perishables without knowing if gas is available the next day. Right now, the industry is bracing for 40-60 days of pain, but who knows, it could continue for months, too. If this happens, we will have no choice but to send some workers home.”
Industry bodies have asked for urgent action, warning that if the shortage continues, many businesses may have to shut down. With no clear timeline for improvement, the sector remains worried and uncertain.