International tourist footfalls are also down for the hotel industry
| Photo Credit:
PTI
Sanjay Kumar, CEO & MD, Rassense, which does catering for a large number of manufacturing facilities, said, the commercial LPG costs are up nearly 3x for the company as availability remains constrained especially in Southern and Eastern regions. “We are securing LPG supplies wherever possible at steep costs, while using boilers and other alternatives at factories and have also switched to firewood for central kitchens. We have cut back on menu items and switched to menu items that do not require gas-based cooking to save on costs,” he added.
Despite the Central government’s directive, restaurants continue to face LPG supply disruptions due to bottlenecks at the State levels, said Pranav Rungta, VP, NRAI. He added that in many cases the players are being forced to procure LPG in the grey market at significantly higher prices.
Footfall down
International tourist footfalls are also down for the hotel industry. Pradeep Shetty, VP, Federation of Hotel and Restaurant Associations of India (FHRAI) said, “City hotels are beginning to see revenue pressures with lesser occupancies. Fresh international travel is not happening. Even MICE and wedding events are being planned as per LPG availability. Resorts and smaller players have curtailed operations and switched to woodfire and other alternatives. In terms of Commercial LPG shortage issue, things remain under pressure for restaurants, depending on allocations being made by states and piped gas connectivity.”
Paritosh Ladhani, Co-Founder, Sincere Developers noted “ There has been a significant impact on international tourist footfalls. During this month, there was a dip visible even in domestic tourism due to subdued consumer sentiment. However, we are seeing some signs of an uptick.”
Tamil Nadu
Venkada Subbu, President, Tamil Nadu Hotel Owners’ Association, said that increase of commercial LPG allocation has not yet trickled down to restaurants. The items consuming high gas have been permanently removed from menus, he added. M Ravi, President, Chennai Hotels Association, and owner of Namma Veedu Vasantha Bhavan, also noted that agents continue to report shortage of LPG. With salaries, rent and bank loans to pay, it is “survival mode” and around 30 per cent of members have also shut down.
A manager at one of the Chennai outlets of Mani’s Dum Biryani, a biryani chain, said that they are operating for reduced hours, and have also reduced the number of items available on Swiggy and Zomato.
Kolkata
According to Sudesh Poddar, President of the Hotel & Restaurant Association of Eastern India (HRAEI), large restaurants in Kolkata are now opting for electricity for at least 70 per cent of their daily energy usage, facing shortage and a high level of uncertainty over LPG supply.”LPG shortage in Kolkata remains. It is forcing restaurants to go for induction cooktops more and more. The conversion from LPG to electricity is progressing very fast,” Poddar said.
Maharashtra
Restaurant industry in Maharashtra is waiting for a favourable outcome on their plea for a relief in licence fee payment and State government decision on allotment of cylinders for hospitality industry.While some outlets have adapted to the challenges and inducted electric induction stoves, others are dragging on with limited availability of LPG cylinders with cuts in menu and shorter timings. “ Earlier we required two cylinders a day. Now we are stretching one cylinder for four days and relying on electric induction,” said a hotelier.
Published on March 27, 2026