LPG shortage: Magicpin reports that restaurant orders are beginning to improve

Food delivery platform magicpin has said that restaurant orders, which were hit by a shortage of commercial LPG cylinders due to the ongoing West Asia conflict, are now beginning to recover as eateries adapt their operations and menus.

According to founder and CEO Anshoo Sharma, the disruption has been most severe for smaller restaurants that depend heavily on LPG cylinders and lack the financial flexibility to absorb sudden cost increases or supply gaps. In the initial phase of the shortage, cuisines that rely extensively on gas-based cooking saw a decline in orders of around 5–10%. However, demand has started to stabilize as restaurants adjust to the situation.

To cope with limited LPG availability, many eateries have temporarily reduced menu items that require long cooking times or high gas consumption. Instead, they are increasingly turning to alternative cooking methods such as induction stoves, electric ovens, and wood-fired setups. These adjustments have helped restaurants continue operations despite the constraints.

Magicpin is also supporting its partner restaurants by offering AI-driven, real-time insights into order volumes, enabling better planning and operational efficiency during the disruption. In addition, the company plans to distribute induction cooking stoves to around 10,000 of the most affected partners in the coming days, helping them sustain business continuity.

Restaurant owners on the ground describe the situation as challenging but manageable with adjustments. Narender Yadav, owner of Pizza-A-Goodness, said that kitchens are being forced to cut down on gas-intensive dishes and rely more on electric alternatives. Similarly, Swapna from Hyderabad Biryaani House in Bengaluru noted that standalone restaurants are under significant stress, with some neighborhood outlets temporarily shutting due to uncertain LPG supply and reports of inflated prices in the black market. Many establishments are operating with limited menus and reduced hours to stay afloat.

The supply crunch is linked to disruptions in global energy logistics caused by the West Asia conflict, particularly the temporary closure of the Strait of Hormuz—a critical channel through which a large portion of India’s crude oil, LPG, and LNG imports typically pass.

In response, the Indian government has introduced temporary measures to stabilize the situation. These include allowing the use of alternative fuels such as coal, biomass, and refuse-derived fuel (RDF) pellets for hotels and restaurants for a limited period of one month. Kerosene has also been reintroduced for household use. Additionally, oil marketing companies will ensure that at least 20% of the average monthly commercial LPG demand is allocated to essential businesses.

Despite the current strain, industry leaders remain optimistic. Sharma emphasized that the restaurant sector has shown resilience during past disruptions and expects the current LPG shortage to be a short-term challenge without lasting impact on the industry.