Hyderabad Restaurants Hit Hard by Rising LPG Prices

Restaurants across Hyderabad are facing a major crisis due to rising commercial LPG prices and supply shortages. From roadside food stalls to premium cafes and fine-dining restaurants, many businesses are struggling to survive as operating costs continue to rise sharply.

Restaurant owners say the situation became worse after commercial LPG cylinder prices increased again on May 1. The sudden jump in fuel expenses, along with higher ingredient and packaging costs, has pushed several food businesses into financial trouble.

Many cloud kitchens and food court outlets inside malls are among the worst affected. Several have reduced operations, while others have completely shut down because of falling sales and increasing expenses.

According to restaurant industry representatives, businesses are witnessing losses of nearly 40% on average. Owners say customer footfalls have dropped significantly after menu prices were increased to manage rising operational costs.

Several restaurant chains in the city have already closed multiple outlets in recent weeks. Operators say maintaining expenses such as rent, salaries, electricity, and gas supply has become extremely difficult, especially in expensive commercial areas like Jubilee Hills.

Many restaurants have also started removing certain dishes from their menus because ingredient prices and cooking costs have become too high. Some businesses are now using alternatives like wood fire, induction stoves, and infrared cooktops due to LPG shortages. However, these methods are slowing kitchen operations and increasing waiting times for customers.

The crisis is also affecting workers in Hyderabad’s hospitality sector. Migrant workers employed in restaurants and cloud kitchens are reportedly returning to their hometowns after businesses reduced staff and working hours.

Delivery workers connected to food delivery apps are also witnessing fewer orders as online food businesses struggle with declining demand. Worker unions say many gig workers are now shifting temporarily to other delivery platforms to continue earning income.

Industry experts warn that if fuel prices and supply problems continue, more restaurants may be forced to shut down in the coming weeks. Restaurant owners are hoping for government support and stable LPG supply to help the industry recover from the ongoing crisis.

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