Days before the shortage of commercial LPG cylinders in the country, pan-Indian restaurants have adapted several ways to stay afloat. Speaking to Live Mint, Wow Momo founder Sagar Daryani predicted price hikes, restaurant closures and even job losses if the situation persists.
Job loss and restaurant closings
“You will see a lot of mortality in the food industry. If this continues, there will be job losses,” he warned.
Daryani, who is the president of the National Restaurant Association of India (NRAI), said more than 100 restaurants have been closed in Bengaluru. Seeking relief from the government, he told us, “There are many people who are dependent on restaurants. They are mostly people from urban cities, bachelors or even those who live in hostels and pay for guest accommodation. Therefore, restaurants must come under basic services.”
The ongoing crisis has erupted as a result of the severe disruption of key import routes, including the all-important Strait of Hormuz, as a result of the ongoing war in the Middle East. With India relying on imports for more than 60% of its LPG, transport problems due to the conflict have led to supply shortages, favoring domestic use over commercial use.
Daryani, who has influenced all the restaurants across India, especially the metro cities, shared what he ensures for his business.
An alternative to LPG cooking
Revealing how his Wow Momo and Wow China franchises are coping with the situation, Daryan said: “We have resorted to alternative energy.”
However, the transition to electric cooking is not easy. “50 percent of our restaurants have been running on electricity since the beginning. However, the rest use LPG. Now we will switch to induction cooking or an electronic fryer. In many places, we may not have an adequate load for electricity consumption. We try to create a few dishes using a microwave oven,” he added.
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Ankit Gupta, co-founder of the popular pan-Indian restaurant Burma Burma, shared that they are rethinking and focusing on the already crowd-pleasing salad and dessert selection. Now bestsellers like Khao Suey and Samosa soup are made on induction.
“We have a mix of PNG (Piped Natural Gas) and LPG at our outlets in India. I think there are 5 restaurants where we use LPG. We are looking at alternative ways. Stocks are sufficient for now,” Gupta said.
Revised menu
Down South, the award-winning restaurant, Kappa Chakka Kandhari has switched to electric induction stoves and other appliances such as steamers, deep fryers and wood stoves. Chef Regi Mathew revealed: “We’ve cut our regular menu by 50% and temporarily stopped offering our tasting menu.”
The Bengaluru and Chennai branches of the restaurant now offer only a limited à la carte menu.
Debate on price increases among restaurateurs
Amid the search for alternative fuel, restaurants are predicting temporary price increases.
While a premium place like Kappa Chakka Kandhari has confirmed maintaining prices, a budget-friendly brand like Wow Momo may increase the price of food in extreme cases.
“We don’t want to profit from it. However, our costs will increase because of the electricity. We have to cover the costs, but we didn’t think about that,” Daryani explained.
Read also | Admitting the LPG supply problem, the government is encouraging city dwellers to opt for piped gas
On the other hand, Burma Burma, which falls into the middle to upper category, might consider changing the price if fuel prices shoot up during the war.
“There has not been much increase in cost. We may have to consider whether gas prices will increase in future,” said Ankit Gupta.
