Restaurant shutdowns triggered by the ongoing shortage of commercial LPG are beginning to reduce order volumes on food delivery platforms, raising concerns over earnings for millions of gig workers who rely on a steady flow of deliveries.
Industry estimates suggest more than 100 restaurants have shut in Bengaluru, around 50 each in Mumbai and Pune, and about 15–20 in Gurugram. The impact is now spreading to Hyderabad and other cities as supply disruptions continue.
Operational Paralysis
Sagar Daryani, president of the National Restaurant Association of India (NRAI) and co-founder of Wow! Momo, said the effect on delivery platforms is already visible and could deepen if closures continue. “The impact has begun and platforms will see a sharper hit in the coming days. If restaurants are not operating, volumes will fall,” he said.
Delivery Partners at Risk
Gig worker unions say delivery partners are already facing fewer orders. The Telangana Gig and Platform Workers’ Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT) said food delivery workers on Swiggy and Zomato face a direct impact as restaurants reduce operations.
“Reduced food preparation capacity could directly affect order volumes and delivery workers’ earnings,” the unions said in a joint statement. They urged aggregator platforms to maintain transparent communication with workers, offer temporary incentives and avoid penalising delivery partners for disruptions beyond their control.
Analysts said food delivery businesses of Eternal, which runs Zomato, and Swiggy could see pressure on order volumes if the LPG shortage forces more restaurants to halt operations. Some of the demand may shift to quick commerce platforms as households cook more at home and order groceries.
However, analysts said the net impact on earnings could still be negative because food delivery remains significantly more profitable than quick commerce for both companies.
Platforms may attempt to redeploy some delivery partners towards quick commerce fulfillment as demand shifts, though the extent of such adjustment remains uncertain. Neither Swiggy nor Zomato has publicly disclosed any impact on order volumes or announced measures for delivery workers so far.
The restaurant industry employs about 8.5 million people and supports a large number of gig workers, Daryani said. Many restaurants also provide meals and accommodation to staff, which means shutdowns affect not only wages but also daily food access.
“If the situation persists, people will lose jobs. Some restaurants may shut permanently if losses continue,” he said.
Daryani added that the restaurant sector had been classified as an essential service during the pandemic because many consumers depend on it for daily meals. “It supports millions of livelihoods and the gig economy. Authorities and oil companies must ensure seamless commercial LPG supply so restaurants can operate without disruption,” he said.
According to NRAI estimates, about 85% of restaurants depend on commercial LPG. With the sector valued at about Rs 7 lakh crore and daily turnover of roughly Rs 2,000 crore, any prolonged disruption quickly affects the wider food supply chain, he added.