Rising Commercial LPG Prices Strain Tricity Restaurant Industry
Commercial LPG price hike puts Tricity eateries under pressure
The Indian Express
Image: The Indian Express
The recent surge in commercial LPG prices is putting financial pressure on restaurants in the Tricity area of India, leading owners to consider raising food prices or absorbing losses. With operating costs rising, many are exploring alternatives like Piped Natural Gas to manage expenses.
- 01Commercial LPG prices have sharply increased, impacting restaurant operating costs.
- 02Some restaurant owners face additional monthly expenses of ₹35,000 to ₹40,000 due to rising gas prices.
- 03Owners are hesitant to raise menu prices to avoid losing loyal customers.
- 04Many are exploring fuel efficiency measures, such as using charcoal-based tandoors.
- 05Piped Natural Gas connections are seen as a potential long-term solution for cost reduction.
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The recent increase in commercial Liquefied Petroleum Gas (LPG) prices is significantly affecting the restaurant industry in the Tricity area, which includes Chandigarh, Mohali, and Panchkula in India. Restaurant owners report that the rise in fuel costs is squeezing already thin profit margins, forcing them to consider either raising food prices or absorbing the losses. For instance, Amritanshu, owner of Hops ‘n’ Grains in Panchkula, noted that his establishment uses around 30 LPG cylinders monthly, leading to substantial overhead costs. Another anonymous restaurateur mentioned that the latest price hike has added approximately ₹35,000 to ₹40,000 to his monthly expenses due to the consumption of 60 to 70 cylinders each month. While some owners are adopting a cautious approach, hoping for stabilization in global fuel prices, others are exploring ways to improve fuel efficiency, such as shifting to charcoal-based cooking methods. Despite the financial strain, many restaurant owners are committed to maintaining food quality and retaining their staff, viewing them as family. Additionally, the prospect of transitioning to Piped Natural Gas is being considered as a long-term solution to alleviate operational costs. As the Tricity restaurant industry navigates this challenging landscape, owners remain hopeful that LPG prices will not continue to escalate.
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The rising costs of commercial LPG are likely to lead to increased food prices, affecting local customers and restaurant profitability.
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