Fast-food chains and cloud kitchens are likely to be less affected by the ongoing liquefied petroleum gas (LPG) shortage than traditional dine-in restaurants, as their operating models allow greater flexibility in cooking equipment and fuel use.
Cloud kitchens typically require limited cooking infrastructure and can also rely on domestic LPG cylinders as many operate from residential neighbourhoods. “Cloud kitchens can run on basic equipment such as gas burners or electric appliances, and being located in residential areas means they may still access domestic cylinders even if deliveries are delayed,” said Naveen Gupta, owner of Nathus Sweets.
Quick-service restaurant (QSR) chains also tend to use a mix of electric and gas equipment, partly because of standardised cooking processes and safety norms in malls. According to Sonal Pahwa of Asian Markets Securities, organised QSRs increasingly use induction cookers, electric fryers and ovens. “Menus are often built around pre-processed ingredients and reheating rather than elaborate cooking, which reduces LPG dependence,” she said.
Commercial Squeeze
However, the ability to switch away from gas remains limited across much of the industry. Cuisines that depend on open flames cannot be easily replicated using electric appliances. Commercial kitchen equipment such as deep fryers, grills and specialised ovens still runs predominantly on LPG.
Operational Vulnerability
Sagar Daryani, co-founder of Wow! Momo and President of the National Restaurant Association of India (NRAI), said the group’s operations illustrate the complexity of the issue. While many of its retail outlets operate on electricity, its central kitchen producing 1.2 million momos a day uses both piped natural gas and LPG. The company’s Wow! China brand relies on LPG for about 90% of operations, while Wow! Chicken runs entirely on LPG.
Of the company’s 750 stores, about 500 can operate fully on electricity, but the remaining 250 depend entirely on LPG. “Where we can immediately convert to electric we are doing so. Where we cannot, we may have to limit the menu,” Daryani said.
He added that most commercial kitchens are not wired for heavy cooking loads. “Electrical capacity is usually planned for refrigeration and lighting, not cooking. Upgrading load requires approvals and time,” he said.
Vipul Bhowar of Waterfield Advisors said large QSR chains may have a slightly longer adjustment window because of buffer stocks but remain exposed. “Their dependence on gas-based equipment like fryers and grills makes them vulnerable if disruptions persist,” he said.
A JM Financial report noted that Sapphire Foods, which operates KFC and Pizza Hut outlets in India, has about 63% of cooking dependent on LPG with a 7-8 day buffer. Restaurant Brands Asia, which runs Burger King India, has a two-week buffer but may drop some products if supplies tighten. Westlife Foodworld, the McDonald’s franchisee for west and south India, has roughly a week of stock and is still assessing the impact.