Rising LPG Prices Force Indian Restaurants to Adapt with Menu Changes and New Cooking Methods
Dishes Become Pricier, Tandoors Give Way to Induction As India's Restaurant Kitchens Feel The Heat Of Another LPG Price Hike
Image: Times Now News
India's restaurant industry is grappling with rising commercial LPG prices, which have increased by ₹42 in Delhi and ₹53.50 in Kolkata since June 1. This inflation, coupled with higher costs for edible oils and logistics, is leading to increased menu prices and smaller portion sizes as restaurants adapt to maintain profitability.
- 01Commercial LPG prices in Delhi rose by ₹42 to ₹3,113.50 per 19-kg cylinder, with Kolkata seeing a ₹53.50 increase.
- 02Restaurants are facing a 70-80% rise in LPG costs over the last three months, alongside increased prices for edible oils and packaging.
- 03Some restaurants are adjusting by reducing live cooking stations instead of raising prices, while others have opted for higher menu prices to reflect costs.
- 04Larger operators are centralizing production and using electric cooking equipment to mitigate gas dependency.
- 05The industry is in a state of adaptation, balancing cost pressures with customer satisfaction.
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The restaurant industry in India is under pressure due to rising commercial LPG prices, which increased by ₹42 in Delhi and ₹53.50 in Kolkata as of June 1. This spike is compounded by overall inflation in edible oils, packaging, and logistics, leading to a significant impact on operating margins. Many restaurants are responding by raising menu prices and reducing portion sizes, with some opting to cut back on live cooking stations to avoid price hikes. For instance, the weekday buffet at 6 Ballygunge Place in Kolkata has increased from ₹950 to ₹1,150 plus GST. Larger food service operators like Compass Group India are adapting by centralizing production and deploying electric cooking equipment, while smaller establishments are also making adjustments. The industry is not in crisis but is navigating a prolonged period of adaptation, where operators are absorbing costs and modifying their offerings to maintain profitability amidst ongoing price volatility.
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The rising LPG prices are forcing restaurants to increase menu prices and reduce portion sizes, impacting dining experiences.
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