02 June,2026 09:17 AM IST | Mumbai | Ritika Gondhalekar
Mani’s Lunch Home in Sion East. PIC/RITIKA GONDHALEKAR
The hospitality industry is staring at an uncertain future as soaring commercial LPG cylinder prices after prolonged gas shortages continue to impact restaurants, eateries, and food businesses across the city. While smaller establishments fear closure, larger restaurateurs are urging the industry to adopt alternative energy sources and modern cooking technologies to survive the mounting crisis.
Solar panels on the premises of Cafe Mysore. Pic/Shadab Khan
While the smaller restaurants haven't passed down the cost yet to the consumers, they have limited the quantities served. "We were forced to increase prices in March when the gas shortage problem began. At that time, we had increased the per-thali cost by Rs 15. Thus, increasing the cost again in just three months is a problem. Also, the people who are dependent on us are mostly labourers or from the lower middle class. While we haven't hiked prices, for now, we have stopped giving the unlimited food service," said Muttu Shetty, manager of Mani's Lunch Home in Sion East.
Kamlakar Shenoy, owner of Sadguru Restaurant at Sandhurst Road, said restaurateurs are closely monitoring the situation. "If we are able to sustain operations, it would be good. If not, we will be left with no option but to increase rates," he said.
Mamta Todankar, who runs a vada pav and bhajji stall in Dadar West, "One cylinder lasts approximately for three days. If the costs suddenly increase by almost Rs 44, the procurement cost per 10 days increases to around Rs 132. For a vada pav vendor, it is quite a lot. Not to mention the fact that the cylinder shortage hasn't ended, and the cost of raw materials is on the rise."
Tiffin service providers have also raised concerns about not being able to cope with these problems. "We will have to shut our business, my family's only source of income, if these problems continue. The tiffin business will not be viable in the long run. And at this age, we don't even know what else to do," said Neelima Kastur, who makes rotis in her Girgaon home.
Owners of the bigger chains have suggested switching from LPG to alternatives. Naresh Nayak, owner of Cafe Mysore, said, "It's a huge capital investment to adopt cutting-edge technology. But, it is a one-time cost. We have installed solar panels that generate energy, reducing power bills. Today, solar energy powers 50 per cent of our cooking.
We are going to install a machine procured from Germany. It's an air-to-water heat pump that gives five times the heat in proportion to just one unit of electricity consumed to run the machine. If we continue using LPG, we will have to use around 22 units to generate the same quantity of heat. Those who can afford it should switch."
Kaustubh Tambe, owner of Aram Vada Pav, said, "We switched to induction almost 1.5 years ago at our CSMT outlet. It didn't hamper operations, and we haven't faced issues in terms of loss of business. I think we save around eight to 10% on costs. Also, safety-wise, it's better to go electric. Looking at the skyrocketing costs of commercial cylinders, we will soon be switching to electric stoves at our Matunga outlet as well."
