The ongoing conflict in West Asia has led to rising energy costs and supply constraints, triggering a shortage of commercial LPG. This has significantly impacted food businesses across India. Industry experts now believe that food delivery platforms like Swiggy and Zomato could see a decline in order volumes as restaurants adjust their operations. Scroll on to know more about this.
What Is Triggering LPG Shortage At Restaurants In India?
According to Hindustan Times, restaurants across India have reported shortage in the supply of commercial LPG. On Monday, the National Restaurant Association of India (NRAI) urged the Centre to step in, warning that any disruption in LPG cylinder supply could lead to a “catastrophic closure” of restaurants.
In a letter to the Union Petroleum and Natural Gas Ministry, the NRAI said restaurants rely heavily on commercial LPG for their operations. It added that a March 5 order by the Centre directing public sector oil marketing companies to prioritise LPG supply for domestic consumers has disrupted the delivery of commercial gas cylinders to restaurants.
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How Will This Impact Online Food Deliveries?
According to India Today, around 20% of hotels and restaurants in Mumbai have shut down so far due to disruptions in commercial LPG supply. Meanwhile, eateries in Pune and Bengaluru are either partially shutting down or halting operations altogether due to the shortage. Now, this LPG shortage at restaurants across India is likely to impact online food delivery as well.
According to Moneycontrol, food delivery platforms like Swiggy and Eternal (Zomato) could see a decline in order volumes as more restaurants across India adjust their operations. For now, commercial LPG is being supplied only to hospitals and educational institutions. Sales to hotels, restaurants, and other commercial establishments have been temporarily halted. Thus, online food delivery is also likely to be impacted.
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