HYDERABAD: Following the nationwide increase in the price of the 19-kg commercial LPG cylinder by Rs 993, many restaurants have already begun overhauling their operations due to their high daily consumption of commercial cylinders.“Unlike other cost increases, this cannot be passed on to customers immediately, as it risks reducing footfall,” said Abhik Mitra, managing director and CEO of Paradise Food Court Pvt Ltd.“On average, our restaurants consume between 100150 commercial cylinders per day. The latest hike will substantially increase monthly operating costs and place serious pressure on margins,” he added.
Many restaurants have begun overhauling kitchen operations. Zain Rehmat-Ullah of Imli Sarai said the restaurant had almost stopped relying on LPG. “We have shifted to wood, electricity, grills, tandoors and induction cooking because LPG isn’t consistently available and prices are now extremely high. Earlier, we kept three to four cylinders as backup, but even that has become a burden,” he said.‘Input costs tripled’Restaurants are also redesigning menus to reduce gasintensive cooking.“Slow-cooked gravies and deep-fried snacks are being reduced, while oven and grillbased dishes like pizzas, burgers, sandwiches and baked pasta are being promoted,” said Ayush Agrawal of one of the popular pubs in the city, adding they are also exploring alternatives such as PNG.“We are left with no choice but to switch to firewood, but it is not a viable long-term solution. Combined with induction cooking, input costs have nearly tripled,” said N Bharan of a popular chain of south Indian snacks.“The price of firewood has risen from Rs 6 to Rs 11 per kg. LPG prices in black market fluctuate between Rs 4,000 and Rs 6,000. We operate across multiple floors, but have had to shut one,” said Mohammad Ali of one of the oldest Biryani places in the city, estimating losses at over 40%.Operators say cooking timelines have nearly doubled, leading to longer waiting periods and fewer customers. The fallout is spreading beyond restaurant kitchens, with workers across the hospitality and delivery ecosystem facing reduced working hours and layoffs. Migrant worker groups say reverse migration has begun.“We are seeing workers leaving in the hundreds every day. With train tickets scarce, many are taking buses from Kompally and Medchal to return to their villages,” said Raju Ojha, chairman of Bihar Samaj Seva Sangh, adding that a large section of Hyderabad’s food industry workforce comes from Bihar.Cloud kitchens and midsized restaurants have been among the worst hit, according to the Telangana Gig and Platform Workers Union. “We have advised delivery partners to shift to other ecommerce platforms,” said union president Salauddin Sheikh.‘Procure LPG cylinders through legit distributors’“The May 1 revision marks a historic high in India’s LPG pricing. Restaurants, hotels, canteens, industries and educational institutions have been urged to procure commercial LPG cylinders only through authorized distributors,” said Jagan Reddy, president, Telangana LPG Distributors Association.
