Restaurant Orders Recover Amid LPG Shortage as Food Supply Chains Adjust

New Delhi: Restaurant orders have started to recover after an initial decline caused by the LPG shortage in India, as eateries adjust menus and adopt alternative cooking methods, according to food delivery platform magicpin.

The shortage of commercial LPG cylinders disrupted restaurant operations across several cities. Supply disruptions linked to the West Asia conflict affected energy shipments moving through the Strait of Hormuz, a critical route for fuel imports to India.

LPG shortage hits restaurant demand but recovery begins

The LPG shortage in India initially reduced restaurant orders for dishes that rely heavily on gas-based cooking.

magicpin CEO Anshoo Sharma said demand for LPG-intensive cuisines dropped 5–10% during the early phase of the disruption. However, orders are now recovering as restaurants adjust their operations.

Many eateries have temporarily limited menu items that require long cooking times. Several outlets have switched to induction cooktops, electric ovens and wood-fired stoves to continue serving customers.

Restaurant demand linked to agricultural markets

Industry participants say restaurant operations play an important role in supporting demand for agricultural commodities.

Restaurants and street food outlets purchase large volumes of wheat flour, rice, pulses, edible oils, poultry and vegetables. Any disruption in kitchen activity can affect institutional demand for these products.

Analysts say prolonged fuel shortages could temporarily influence food supply chains and demand patterns in the agriculture sector.

Menu adjustments may shift food consumption trends

Restaurants facing fuel shortages often prioritize dishes that require shorter cooking time or lower fuel consumption.

This shift can influence the demand for certain raw ingredients used in food service. Items that require longer cooking or high heat may see lower demand during such periods.

Market analysts say these operational changes could lead to temporary shifts in consumption patterns across the restaurant industry.

Government allows alternative fuels to ease shortage

The government has introduced temporary measures to address the LPG shortage affecting restaurants.

Authorities now allow hotels and eateries to use alternative fuels such as:

• biomass

• refuse-derived fuel (RDF) pellets

• coal

At the same time, oil marketing companies have been instructed to allocate around 20% of average commercial LPG demand to essential businesses.

Restaurant sector gradually stabilizing

Restaurant operators say the industry is slowly stabilizing as businesses adapt to the supply disruption.

However, market participants will continue monitoring the situation closely. A prolonged LPG shortage could affect food consumption patterns, restaurant demand and agricultural commodity markets.