Hyderabad's restaurant industry is reeling under the impact of the West Asia crisis, with soaring commercial LPG prices and supply shortages forcing many eateries to shut down. From small roadside stalls to fine-dining outlets, all are affected.
Widespread Shutdowns
Cloud kitchens and food courts in malls are among the worst hit. Industry representatives report that losses could reach nearly 40%. Sandeep Balasubramaniun, president of the National Restaurant Association of India (NRAI) Hyderabad chapter, stated, 'Restaurants have been under severe stress for months, but the number of shutdowns in the last week is very concerning.' He added that not just small eateries but also fancy cafes and cuisine-specific restaurants are closing down.
Impact on Chains
Large food chains are also struggling. Ravi Khandelwal, owner of a popular Frankie chain, said they shut five outlets in a week and raised prices by 10%. 'Overall costs have gone up from 30% to 50%,' he noted. Similarly, Ravi Yelamarti, who operated seven outlets of a Chinese chain, closed two recently. 'Sales dropped by 30%, and fixed expenses like salaries and rentals continue,' he said.
Price hikes have not helped. A fine dining operator in Jubilee Hills, speaking anonymously, said they paid Rs 5,500 per cylinder on the black market but now find it impossible. 'Running a large restaurant with high rentals is not viable, so we are shutting down,' he explained.
Operational Challenges
Abhik Mitra, MD of Paradise Food Court Pvt Ltd, said restaurants cannot immediately pass on fuel cost increases to customers without risking footfalls. 'Our restaurants consume 100-150 cylinders daily; the price hike will squeeze margins,' he warned. Mohammad Ali from Shah Ghouse said alternatives like wood fire slow down operations, leading to a 40% loss in business.
Broader Economic Impact
The crisis is affecting workers across the hospitality ecosystem. Migrant worker groups report reverse migration accelerating as restaurants cut staff. Raju Ojha of Bihar Samaj Seva Sangh said, 'Workers are leaving in hundreds daily, taking buses to villages.' The Telangana Gig and Platform Workers Union noted that delivery workers are being advised to shift to other e-commerce platforms due to falling orders.
