India’s restaurant industry is facing a massive crisis, with losses estimated at ₹79,000 crore per month due to a severe shortage of commercial LPG.

The disruption has been triggered by the ongoing conflict in West Asia, particularly involving Iran, which has impacted LPG supply routes and availability. Restaurants, which depend heavily on uninterrupted gas supply for daily operations, are now struggling to function normally.
According to industry estimates, the sector has seen a 15–20% slowdown in activity, with many establishments forced to cut menus, reduce operating hours, or temporarily shut down.
The impact is widespread, affecting everything from small eateries and street food vendors to large hotel kitchens and organised food chains. The crisis has also raised concerns about employment, with 5–7 lakh jobs at risk in one of India’s largest service sectors.
As supply disruptions continue, many restaurants are shifting to alternative energy sources like induction cooking and piped gas, but the transition remains slow and costly.
The situation highlights India’s dependence on global energy supply chains and the vulnerability of key sectors like hospitality to geopolitical tensions.
