Archive · 27 Jul 2026
Zomato's restaurant base shrinks due to LPG shortage
Zomato, a food delivery platform, saw a decrease in the number of restaurants it works with for the first time ever.
This happened because there was a shortage of cooking gas (LPG) in India.
The shortage started in March and lasted until late June.
During this time, restaurants had to limit their operations, cut menus, or even shut down.
Small restaurants were hit the hardest because they have less money to buy gas.
Zomato, however, still saw growth in the number of customers using its service.
The shortage also caused the price of gas to go up, making it more expensive for restaurants to operate.
This situation shows how important it is for restaurants to have a steady supply of cooking gas to keep their businesses running.
Zomato's active restaurant partners fell to 328,000 in the June quarter from 344,000 in the March quarter.
The decline was due to an LPG shortage that started in March and lasted until late June.
Restaurants faced rationed and costlier gas supplies, leading to curtailed operations or closures.
Small and mid-sized restaurants were the most affected, with around a fifth curtailing operations.
Zomato's food delivery business grew, with net order value up 20.1% year-on-year to Rs 10,769 crore.
- Who
- Zomato and its restaurant partners
- What
- Decline in active restaurant partners due to LPG shortage
- When
- June quarter of 2026
- Where
- India
- Why
- LPG supply disruption and price increases affected restaurant operations
Restaurants
Zomato
Impact of LPG shortage
Restaurants
Restaurants, especially small and mid-sized ones, faced significant challenges due to the LPG shortage, leading to curtailed operations and potential permanent closures.
Zomato
Zomato experienced a decline in active restaurant partners but saw growth in food delivery business, indicating supply-side stress rather than demand issues.
- Active Restaurant Partners
- 328,000 (June quarter), down from 344,000 (March quarter)
- Net Order Value
- Rs 10,769 crore (20.1% year-on-year growth)
- Monthly Transacting Customers
- 27.2 million
- LPG Price Increase
- Steep rise in 19-kg commercial cylinder prices, with partial relief in July
- Restaurants Affected
- Around a fifth of restaurants curtailed operations at the peak of the crisis