Restaurants Switch to Coal and Wood Fires Amid Iran-Driven LPG Crisis

The ongoing Iran war has triggered a severe commercial LPG shortage across Indian eateries, forcing many restaurants to revert to traditional wood and coal-fired cooking methods amid supply disruptions. The conflict in West Asia, particularly disruptions in the Strait of Hormuz—a critical chokepoint for global energy shipments—has slashed LPG deliveries to Indian distributors, prioritizing household supplies over commercial needs.

In Bengaluru, the epicenter of the crisis, hotel associations warned of citywide kitchen shutdowns as early as March 10, with eateries receiving just 20% of usual stocks. Quick-service giants like McDonald's, Domino's, and KFC now face skyrocketing fuel costs, potential store closures, and menu tweaks to conserve gas. Restaurant operators report serpentine queues at LPG agencies and abrupt halts in cylinder supplies starting March 9, exacerbating pre-existing pressures from weak demand and rising expenses.

Mumbai's AHAR association noted 20% of outlets already shuttered, with up to 50% at risk within days, while Chennai's 10,000 small eateries brace for mass closures. Industry leaders like the National Restaurant Association of India (NRAI), representing over 500,000 establishments and 8 million jobs, highlight the sector's heavy reliance on LPG—about 90% of kitchens depend on it.

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To cope, eateries are innovating rapidly: shortening menus, cutting operating hours, and firing up retro wood or coal chulhas long abandoned for modern gas setups. Bengaluru icons like Vidyarthi Bhavan and century-old establishments are among those adapting, with owners like Arun Adiga lamenting an "existential threat" from a distant war. Some explore electric alternatives, though high upfront costs and power reliability pose hurdles for small players.

The LPG crunch threatens broader ripple effects, including job losses and inflated prices passed to consumers via hikes or shrunk portions. Brokerages like JM Financial predict margin squeezes for listed firms such as Westlife Foodworld and Devyani International unless supplies normalize. Hotel bodies in Karnataka, Maharashtra, and Tamil Nadu have urged government intervention to secure imports or ration equitably.

As India imports nearly 67% of its LPG needs through vulnerable routes, prolonged war fallout could reshape the ₹5.7 trillion restaurant industry, blending survival tactics with calls for policy relief. Eatery owners eye a fragile balance: preserving culinary heritage via traditional fuels while praying for geopolitical calm to restore modern kitchen rhythms.

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