Updated Mar 15, 2026 22:37 IST
Elara Capital, in its report on the problem in LPG supply and its possible impact on QSR (Quick Service Restaurants) and foodtech platforms, has said that so far there has been no store closure or direct impact on business in any major QSR chain.
highlights
- LPG supply crisis: No impact on big QSR chains yet, pressure on Zomato-Swiggy possible
- Elara Capital Report: Restaurant operations may be affected if LPG crisis increases
- McDonald’s-Burger King less affected, Domino’s more dependent on LPG
Elara Capital, in its report on the problem in LPG supply and its possible impact on QSR (Quick Service Restaurants) and foodtech platforms, has said that so far there has been no store closure or direct impact on business in any major QSR chain. However, aggregators like Zomato and Swiggy may be affected due to closure of standalone restaurants. Some restaurants have made some changes to their menus to save LPG, while QSR companies have an LPG stock buffer of 7-15 days. It has been said that if the supply disruption continues for a long period, operations may be affected.
Talking about dependence on LPG, McDonald’s and Burger King do about 80-85 percent electric based operations, whereas Domino’s is dependent on LPG and only 10 percent of the operations are electric. KFC uses a hybrid model and uses both electric and LPG fryers.
Less than 5 percent restaurants closed
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According to the National Restaurant Association of India, there are more than 6 lakh restaurants in India and currently only less than 5 percent of the restaurants are closed. A large number of outlets have limited their menus. Standalone restaurants are more vulnerable than QSR chains. If the supply remains disrupted for 10 to 15 days, 10 to 20 percent of the outlets are likely to be closed.
Foodtech platforms like Zomato and Swiggy are more sensitive to this as their business directly depends on the restaurant ecosystem. GOV/OPD is likely to decline by 10-20 percent in the next two weeks. Food tech platforms may have to face the pressure of reduction in orders in the short term. If these disruptions persist, EBITDA could decline by around 7-8 per cent in Q4FY26. Investigation shows that these platforms are ready to give discounts.
keep an eye on shares
Despite this, investors have become cautious. Some QSR stocks like Westlife Foodworld and Jubilant FoodWorks have fallen around 5 to 7 per cent over the last week, while shares of Zomato and Swiggy are down 3 to 4 per cent. Strong selling was seen in the Indian stock market on Friday. Nifty 50 closed with weakness for the third consecutive trading session, falling nearly 2 percent. Tata Consumer Products was the top gainer in the index, while Larsen & Toubro was the biggest loser. Amid increasing volatility in the market, India VIX also increased by about 5.2 percent.
There was heavy pressure in banking shares also. Nifty Bank closed in the red for the third consecutive day, falling more than 2.4 percent. All the stocks in the index closed with losses, with Union Bank of India and Punjab National Bank being the major losers.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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