Food delivery platforms like Zomato, Swiggy, and Ownly are likely to see a drop in orders as thousands of restaurants temporarily ceased operations across the country amid limited cooking gas supplies due to the Middle East war.
This, in turn, is affecting food delivery platforms. “Bengaluru and Pune are the worst affected as of now (around Tuesday noon),” said a senior executive of a food delivery service. “Restaurants are running out of gas. Delhi-NCR, Mumbai, and Kolkata are relatively better for now but may deteriorate in a day or two.”
On Saturday, the National Restaurant Association of India (NRAI) wrote to the government raising concerns about a shortage of commercial LPG cylinders, seeking clarity on sustained supplies.
NRAI president and Wow Momo founder Sagar Daryani said that restaurants are now looking at alternatives like induction cooking, but that may not work for all.
Saili Jahagirdar, Pune chapter head of NRAI, said that as of Tuesday evening, about 10,000 eateries, including quick service restaurants (QSR) and cloud kitchens, have shut down or are running at half capacity.
“The entire food service industry is impacted. Order numbers are dropping for food delivery platforms because restaurants can’t take orders,” she said, adding that gig workers and restaurant staff are also affected.
Swiggy, Zomato and Rapido’s Ownly did not respond to queries until press time.
Ecosystem at risk
Hotel associations in Bengaluru and Chennai have put out official notices stating that thousands of restaurants across the cities have been forced to close their doors.
“I have already shut down one of our outlets in Pune and can operate the other only until tomorrow’s first half,” said Jahagirdar, who also owns Zillionth Bistro. “Our vendors are not taking orders, and our staff will be affected if things don’t normalise soon.”
A food delivery firm executive said 1,000-1,500 establishments across Mumbai and Chennai have closed operations and things are likely to worsen in the coming days.
Multiple restaurant and cloud kitchen owners across Bengaluru, Pune, and Delhi-NCR told ET that they have reduced the items on their menu to continue operations for as long as they can.
To help manage the operational disruption, NRAI shared a circular on Tuesday detailing fuel conservation methods, such as using induction cooking equipment, electric fryers and ovens, and introducing a ‘crisis menu’ with fast-cooking items.
Cloud kitchens could be less impacted since they mostly use induction for cooking. However, they depend on vendors for bakery products like breads, buns, and more, which are already reeling under the shortage.
“Our bakery vendor has told us that he can’t take orders from us for Thursday because he doesn’t have cooking gas left for use beyond tomorrow,” a restaurant owner said.
The food industry disruptions come as India faces a supply shortage of liquefied petroleum gas (LPG) and the government has halted the distribution of commercial LPG cylinders to prioritise domestic supplies. Restaurant owners in the Delhi-NCR region said the price of LPG cylinders is shooting up as some people are selling them at black market rates.
