Zomato and Swiggy Face Order Slump As Thousands of Restaurants Halt Operations Amid LPG Shortage in India
India’s food delivery sector, including Zomato and Swiggy, is seeing a drop in orders as restaurants shut down due to a commercial LPG shortage linked to the Middle East war. Bengaluru and Pune are currently the worst hit, with Delhi and Mumbai expected to follow. The NRAI has sought government intervention as kitchens struggle to find viable cooking alternatives.
Mumbai, March 10: Food delivery platforms including Zomato, Swiggy, and Ownly are bracing for a significant downturn in order volumes as thousands of restaurants across India temporarily suspend operations. The disruption stems from a critical shortage of commercial cooking gas supplies, a logistical fallout attributed to the ongoing conflict in the Middle East. Industry experts suggest that the sudden reduction in active restaurant listings is already impacting the daily gross order value for major aggregators.
The supply chain crisis has hit major metropolitan hubs with varying intensity, forcing many establishments to either shut down entirely or drastically prune their menus. According to senior executives in the food delivery sector, the shortage has created a bottleneck that prevents cloud kitchens and traditional dine-in restaurants from fulfilling digital orders. While some businesses are attempting to pivot to electrical backups, the scale of the shortage has made sustained operations difficult for the majority of the industry. Government Orders Under Essential Commodities Act To Ensure Uninterrupted Supply of Piped Natural Gas and LPG for Cooking.
LPG Shortage Impact on Major Indian Metros
Bengaluru and Pune have emerged as the cities most severely impacted by the lack of commercial LPG cylinders. Reports indicate that a high concentration of cloud kitchens in these regions has led to a sharper decline in available delivery options compared to other parts of the country. A senior executive from a leading delivery service noted that while Delhi-NCR, Mumbai, and Kolkata currently maintain better supply levels, the situation in these cities is expected to deteriorate within the next 48 hours if replenishment does not occur.
The National Restaurant Association of India (NRAI) has formally approached the government to seek clarity on the availability of sustained supplies. In a communication sent on Saturday, the body raised urgent concerns regarding the depletion of commercial stocks. NRAI President and Wow Momo founder, Sagar Daryani, stated that while some restaurants are exploring induction cooking as a stop-gap measure, the transition is not technically feasible for all types of cuisines or high-volume commercial kitchens.
LPG Alternatives and Future Outlook
The shift toward electric-based cooking remains a challenge for the Indian hospitality sector, which relies heavily on high-pressure gas burners for authentic preparation styles. Restaurant owners in Delhi-NCR and Bengaluru have confirmed that they are currently operating on a day-to-day basis, with many choosing to delist from delivery apps to avoid penalties associated with cancelled orders. This voluntary suspension of services is directly contributing to the visible dip in platform traffic. LPG Shortage Hits Hotels and Restaurants in Mumbai, Kolkata, Bengaluru and Chennai Amid Middle East Tensions; Centre Responds.
As the geopolitical situation in the Middle East continues to impact global energy logistics, the Indian food tech industry remains in a state of uncertainty. Analysts believe that if the gas shortage extends beyond the current week, the financial impact on delivery partners and gig workers could be substantial. For now, the industry is awaiting a government response regarding the prioritisation of commercial fuel for the essential services and hospitality sectors.
(The above story first appeared on LatestLY on Mar 10, 2026 04:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).