The LPG shortage is creating a stark divide across India's restaurant industry, with small eateries and delivery workers bearing the brunt while large QSR chains maintain operational stability. According to ET Now, India has more than six lakh restaurants, and industry data suggest about 5 per cent have already shut shop temporarily due to LPG shortages. Many small eateries have begun trimming menus, focusing only on essential or high-margin items to conserve fuel. However, organised restaurant chains have enough LPG stocks to last between seven and 15 days, offering temporary relief if supply constraints persist. The picture varies widely across chain-level exposure to LPG, with McDonald's and Burger King among the least affected, with nearly 80–85 per cent of their operations powered by electricity, while Domino's India, operated by Jubilant FoodWorks, stands out as the most vulnerable among large players, as it relies heavily on LPG for its kitchens, with only around 10 per cent of its operations electrified. If the supply disruption extends beyond the existing buffer period, pizza chains could be among the first to feel operational strain.
The LPG crisis is creating immediate financial pressure on delivery workers who depend on volume-based daily earnings. As reported by ET Now, a Zomato delivery partner in Delhi who spoke to ET Now said that during the morning hours when he logged into the app, he was hoping for a regular workday. Until recently, he would complete 25–30 food deliveries a day, enough to cover rent, groceries, and other expenses. But shortly after the LPG crunch hit, he managed just six to seven orders. A Swiggy delivery partner echoed the distress, explaining he usually delivers around 40 orders in a day, but now just 10–12 deliveries. Asked whether he could switch to Swiggy's quick-commerce arm Instamart to make up for lost income, the rider said the option is limited. Street estimates suggest a potential 7–8 per cent downside to EBITDA for delivery players if the disruption persists, with platforms and restaurants potentially rolling out aggressive discounts to retain demand.
Major IT companies are joining the QSR sector in implementing crisis management measures as the LPG shortage intensifies across India. Cognizant has reportedly encouraged its employees to adopt a 'Bring Your Own Food' (BYOF) approach wherever feasible to reduce heavy dependence on commercial LPG-reliant cafeterias. According to The Times of India, Cognizant is preparing for possible disruptions driven by price volatility, supply prioritisation and strain on vendors. The company has identified alternative food vendors that do not rely on commercial LPG, including those using induction or solar-based cooking, and is exploring partnerships with cloud kitchens operating on electric or solar power to meet meal requirements if conventional supplies are disrupted. Cognizant is also weighing work-from-home or hybrid arrangements for non-critical roles to reduce commute exposure due to rising fuel costs.
Quick-service restaurant (QSR) stocks are experiencing severe pressure, with shares hovering around their 52-week lows on Friday, March 13 due to the commercial LPG shortage. According to Live Mint, Sapphire Foods, Jubilant Foodworks, Devyani International (KFC, Pizza Hut), and Westlife Foodworld (McDonald's) are encountering operational challenges and potential pressure on profit margins, with certain stocks declining by as much as 7%. Westlife Foodworld and Sapphire Foods stocks touched their 52-week low, while Jubilant FoodWorks and Devyani International were around their 52-week low. Technical analysts are noting concerning patterns, with Eternal forming lower highs and trading comfortably below short-term averages, while Jubilant FoodWorks slipped below its crucial support zone of 480 after which selling pressure intensified. As long as the stock remains below '480, the weak formation is likely to continue on the downside, with potential retests of 450 and 440. However, CNBC TV18 reports that shares of food delivery and quick-commerce companies are expected to open higher on Friday, March 13, with Swiss investment bank UBS maintaining positive outlook despite near-term challenges.
The LPG shortage has created a significant opportunity for appliance manufacturers as consumers shift to electric cooking solutions. According to The Economic Times, Tata Group's Croma has observed a threefold jump in demand for induction cooktops over the past few days, with Stove Kraft reporting that its average weekly online sales have jumped four times. Crompton appliance maker Butterfly Gandhimathi Appliances and other players in the induction cooktop segment are seeing rising sales as restaurants and households adopt electric cooking alternatives. Infiniti Retail Ltd (Croma) CEO & MD Shibashish Roy stated: "At Croma, we have observed a sharp and immediate uptick in demand for induction cooktops over the past few days. Our average daily run rate has surged significantly." This surge comes as India faces a severe LPG shortage with gas prices having surged by ₹60 per cylinder for domestic cooking gas and ₹114.5 for commercial LPG, forcing restaurants to adopt alternative cooking methods.
The central government has stepped in to address the cooking gas shortage affecting restaurants and food delivery operations through a new allocation system. Authorities said commercial LPG cylinders will be released on priority to prevent panic-driven bookings and reduce the risk of restaurant closures. Under the new arrangement, oil marketing companies will allocate 20% of the average monthly commercial LPG requirement to restaurants and eateries starting immediately. The shortage has been linked to disruptions in global gas supplies amid the ongoing conflict in West Asia, with Qatar Energy, one of the world's largest gas producers, recently declaring force majeure, affecting downstream clients and creating ripple effects across supply chains. As a result, several restaurants across the country have either trimmed their menus or temporarily shut operations until commercial LPG supplies normalise. The government has also assured that steps are being taken to ensure domestic LPG availability remains unaffected.
Despite the LPG crisis, the food delivery industry continues to demonstrate strong growth fundamentals. According to CNBC TV18, Swiss investment bank UBS said receipts data indicates that industry volumes in February 2026 grew 20% to 21% year-on-year, with food delivery volumes maintaining healthy growth momentum with industry expansion sustaining above 20% YoY so far. However, UBS cautioned that volumes in March and April could face some pressure due to the ongoing shortage of commercial cooking gas. In the quick-commerce segment, UBS said Blinkit continues to widen its reach advantage compared to rivals such as Instamart and Zepto. Among analysts tracking Eternal, 30 out of 33 maintain a 'Buy' rating, while three recommend 'Sell', while Swiggy has coverage from 28 analysts, of whom 23 rate the stock a 'Buy', indicating continued confidence in long-term growth prospects despite near-term operational challenges.
