Restaurants Plan 5-10% Menu Hikes from July as Fuel, LPG Costs Squeeze Margins
NRAI flags Rs 79,000 cr monthly sector losses as petrol hits Rs 97.77/litre and LPG costs jump 60%. Cafe Delhi Heights, Wow! Momo, Kylin among brands signaling price action; Zomato, Swiggy commissions add pressure as 10% of restaurants have already shut.
What happened
Indian restaurants and delivery platforms plan 5-10% menu price hikes from July following fuel price increases, compounding LPG shortages. NRAI estimates Rs
Key facts
- 5-10% price hike
- Petrol Rs 97.77/litre
- Diesel Rs 90.67/litre
- 60% higher LPG costs
- 10% restaurants shut
- 60-70% shifted fuels
- Rs 2,650 cr/day losses
- Rs 79,000 cr/month losses
- Milk +Rs 2/litre
- 500,000 NRAI members
Why this matters
Distressed independents and sub-scale chains become acquisition targets at depressed multiples this quarter—prioritize tuck-ins with strong unit economics in metros where the surviving 90% will consolidate share.