Hyderabad: The restaurant industry in the city is bracing for what hoteliers are calling a “bloodbath” after commercial LPG prices skyrocketed on Friday, triggering fears of shutdowns, job losses and rising dining costs across the city.The price of a 19-kg commercial LPG cylinder in Hyderabad has jumped from Rs 2,321 to Rs 3,315 following a nationwide hike of Rs 993 — the steepest increase in recent years. Smaller 5-kg cylinders too have become costlier, rising from Rs 673 to Rs 914.50.Restaurant owners say the sector had been operating at losses of 35-40% for months, with many establishments barely surviving.“More restaurants will shut down and thousands of workers will lose employment if the situation continues,” said Sandeep Balasubramanian, president of the National Restaurant Association of India, Hyderabad chapter.“The black-market price of LPG will shoot up even further now. Even before this hike, a cylinder were being sold for anywhere between Rs 4,000 and Rs 7,000 illegally. Restaurants are also under pressure from food delivery platforms to offer heavy discounts while service charges have disappeared entirely. We simply cannot sustain operations like this any more,” he added.Industry leaders say the crisis extends far beyond rising fuel bills.“Unlike other cost increases, this cannot be passed on to customers immediately, as it risks reducing footfall,” said Abhik Mitra, managing director and CEO of Paradise Food Court Pvt Ltd.“On average, our restaurants consume between 100-150 commercial cylinders per day. The latest hike will substantially increase monthly operating costs and place serious pressure on margins,” he added.Many restaurants have already begun overhauling kitchen operations.Zain Rehmat-Ullah of Imli Sarai said the restaurant had almost entirely stopped relying on LPG.“We have shifted to wood, electricity, grills, tandoors and induction cooking because LPG isn’t consistently available and prices are now extremely high. Earlier, we kept three to four cylinders as backup, but even that has become a burden,” he said.Restaurants are also redesigning menus to reduce gas-intensive cooking.“Slow-cooked gravies and deep-fried snacks are being reduced, while oven and grill-based dishes like pizzas, burgers, sandwiches and baked pasta are being promoted,” said Ayush Agrawal of one of the popular pub in the city, adding they are also exploring alternatives such as PNG.“We are left with no choice but to switch to firewood, but it is not a viable long-term solution. Combined with induction cooking, input costs have nearly tripled,” said N Bharan of a popular chain of south Indian snacks. He said the restaurant has cut down production to reduce fuel consumption.“The price of firewood has risen from Rs 6 to Rs 11 per kg. LPG prices in the black market fluctuate between Rs 4,000 and Rs 6,000. We operate across multiple floors, but have had to shut one,” said Mohammad Ali of one of the oldest Biryani places in the city, estimating losses at over 40%.Operators say cooking timelines have nearly doubled, leading to longer waiting periods and fewer customers.The fallout is now spreading beyond restaurant kitchens, with workers across the hospitality and delivery ecosystem facing reduced working hours and layoffs. Migrant worker groups say reverse migration has already begun.“We are seeing workers leaving in the hundreds every day. With train tickets scarce, many are taking buses from Kompally and Medchal to return to their villages,” said Raju Ojha, chairman of Bihar Samaj Seva Sangh, adding that a large section of Hyderabad’s food industry workforce comes from Bihar.Cloud kitchens and mid-sized restaurants have been among the worst hit, according to the Telangana Gig and Platform Workers Union.“While there is no official data yet, cloud kitchens, roadside eateries and workers in mid-sized restaurants have been severely impacted. We have advised delivery partners to temporarily shift to other e-commerce platforms,” said union president Salauddin Sheikh.
