Westlife Food, Jubilant Food, Eternal, Swiggy, IHCL: Why hotel, restaurant, and food delivery stocks are in spotlight on March 10

The Federation of Hotel and Restaurant Associations of India (FHRAI) wrote to Minister of Petroleum and Natural Gas Hardeep Singh Puri, flagging "widespread disruption at the ground level".

FHRAI stated that several distributors are withholding supplies, citing a government order dated March 5.

"In light of these challenges, we request the government to issue a formal clarification confirming that no such restrictions apply to the hospitality and food service sectors. We further pray for a clear mandate to be issued to all oil marketing companies to ensure the seamless distribution of commercial cylinders," FHRAI Secretary General Jaison Chacko said in the letter.

The National Restaurant Association of India (NRAI) said commercial LPG cylinder suppliers were expressing their inability to meet the supply needs of the restaurant industry, which was "severely impacting" it, and urged the government to clarify/intervene on the issue.

"As per news articles, the government has clarified that there is no ban on the supply of commercial LPG cylinders for the restaurant industry. However, the ground situation is different, with suppliers expressing inability to supply the same. This is severely impacting the restaurant industry and, in turn, the supply of food as an essential service for citizens. We request urgent clarification/intervention," NRAI said in a post on X.

What you need to know

Commercial LPG prices in India recently rose by about ₹115 per 19-kg cylinder, directly raising operating costs for hotels, restaurants, and caterers. Supply disruptions linked to geopolitical tensions in West Asia have caused shortages of commercial cylinders in several cities, affecting eateries and hotels.

Stocks in focus

Quick Service Restaurant (QSR) companies

These companies operate large restaurant chains where commercial LPG is a key operating input for kitchens.

Higher cooking fuel costs or supply disruptions could raise operating expenses and compress margins, particularly if companies cannot quickly pass on costs through menu price hikes.

Hotel & Hospitality Companies

Hotels with large kitchens, banquet operations, and catering services also depend heavily on LPG.

Hotels may face higher operating costs and could eventually pass on the impact through higher food and service prices.

Food Delivery Platforms

Food-delivery companies are indirectly exposed because their business depends on restaurants staying operational.

If restaurants shut down temporarily due to LPG shortages, order volumes and restaurant availability on these platforms may decline, potentially affecting revenues.