QSR Stocks Tank 7%: Eternal & Jubilant Bleed as LPG Crisis Hits Kitchens

Shares of quick-service restaurant and food-tech companies came under heavy selling pressure in Thursday’s session as disruptions in the supply of commercial LPG cylinders began affecting restaurant operations across several urban centres.

By 12:09 PM IST, several listed companies in the sector had declined sharply, reflecting investor concerns that the ongoing gas supply issues could impact revenues and operating margins.

QSR Stocks Under Pressure

Among the major stocks in focus:

• Eternal fell 7.2% to ₹208.50, as restaurant partners reportedly scaled down operations due to gas shortages while delivery costs increased amid rising fuel prices.
• Jubilant FoodWorks declined 6.9% to ₹458.20, with concerns that gas supply disruptions could affect restaurant operations and delivery timelines.
• Devyani International dropped 6.1% to ₹108.40, amid reports that several outlets in parts of North India closed early due to limited gas supply.
• Sapphire Foods India fell 7.5% to ₹161.40, with analysts noting that outlets in high-traffic urban malls could face operational challenges if supply disruptions continue.
• Westlife Foodworld declined 3.4% to ₹462, showing relatively lower downside compared with peers.

Operational Challenges Emerging

The decline in restaurant stocks comes amid reports that several food hubs in cities such as Delhi, Mumbai, and Bengaluru are experiencing supply shortages of 19-kg commercial LPG cylinders, which are widely used by restaurants and food outlets.

Restaurants have reportedly started removing high gas-consumption items from menus to conserve available fuel. Dishes requiring prolonged cooking or high flame, such as tandoori breads, dosas, and slow-cooked gravies, are among the items being temporarily removed in some outlets.

Another concern for restaurant operators is the rise in commercial LPG prices in the informal market. In addition to supply shortages, rising global crude oil prices are also increasing transportation and delivery costs for food-tech platforms.

Some restaurant outlets in key urban food clusters have reportedly temporarily shut down or shifted to limited service due to the shortage. Operators have informed customers about restricted menu availability or reduced operating hours as kitchens struggle to manage with limited fuel supplies.

These operational disruptions have heightened investor concerns about short-term revenue losses across the restaurant and food delivery ecosystem.

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