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The US-Iran war could also impact the taste of fast food. This is because the supply of commercial LPG in the country is being affected. According to a report by brokerage firm JM Financial, if the LPG shortage continues, quick service restaurant (QSR) companies could face difficulties. This could increase their costs. Food could become more expensive, or menus could change. These restaurants include major names like KFC, Burger King, Pizza Hut, McDonald's, and Domino's, whose businesses span the globe.

According to the report, large restaurant chains have better supply systems than smaller restaurants or eateries, but if there is a shortage of commercial LPG or a persistent increase in prices, the entire sector could be affected. QSR restaurants will be particularly affected. These companies have hundreds of outlets across the country and require a steady supply of LPG to maintain their kitchens and menus.

Fast food may become more expensive.
If the LPG shortage continues, companies may have to bear higher fuel costs or increase menu prices. According to reports, approximately 60-65% of food in most QSR chains is cooked on LPG, and companies typically stock up on gas for 1 to 2 weeks. If LPG cylinders are unavailable for even 5 days, a store's revenue could decline by approximately 6%.

India's QSR sector relies heavily on gas.
India's fast-food industry uses LPG for fryers, grills, ovens, and other kitchen equipment. The problem could be exacerbated because government policy prioritizes LPG supply to households, so commercial users like restaurants are the first to be affected by a shortage. It's difficult to adopt induction or other alternatives for many food items, as deep frying and fire-cooked dishes are best cooked on gas.

Even a small shock can have an impact.
The report says that if supply disruptions continue, restaurant companies will have few options. Kitchens in this sector operate at a very fast and systematic pace, so even a small disruption in fuel supply can slow service. Companies may reduce menus, which could impact revenue. This means that the availability of LPG has become a crucial issue for India's rapidly growing fast-food industry.

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