Eating out getting costlier? Over 1 in 2 consumers say yes, survey finds

Hyderabad: According to a LocalCircles survey, amid the ongoing LPG crisis brought about by the Israel-Iran conflict, most street vendors have increased food prices between 10 and 25 per cent.

The price increase by the restaurants is more uneven, with the percentage increase being higher than 25 per cent for 1 in 5 consumers.

Please bear this price rise, say vendors and restaurants

Street food, which is a staple for many working Indians, is becoming costlier due to an ongoing LPG cylinder shortage affecting several Indian cities.

Roadside eateries, small food vendors and even restaurants are increasingly asking customers to temporarily bear part of the cooking fuel cost. Several restaurants and eateries have begun raising menu prices or adding temporary LPG surcharges to customer bills to offset rising fuel costs and irregular supply of commercial cylinders.

‘LPG revision fee’ passed down to consumers

In some cases, restaurants have reportedly started adding Rs 15 or more as ‘LPG revision fee’ to each bill to recover additional cooking fuel expenses.

Vendors and restaurants cite paying as much as Rs 400/kg for LPG to sustain operations

In cities facing severe shortages, eateries have also increased the prices of popular food items, as they are sometimes forced to buy LPG cylinders at higher rates or even from the black market. Since commercial establishments do not receive subsidised LPG like households, these higher costs are often passed on to customers through price hikes or surcharges, making eating out slightly more expensive.

Street vendors had to shut down operations

Many street vendors and small eateries operate using small commercial LPG cylinders that require frequent refilling.

Due to the shortage, vendors in cities such as Ranchi and Bhopal have reduced their operations or temporarily shut down their stalls. Some vendors say their business has dropped significantly as they struggle to secure gas cylinders needed for cooking.

Dishes and home deliveries are taking a hit

Restaurants and small hotels are also facing operational challenges. In cities including Bengaluru and Pune, eateries are reported to have reduced kitchen activity, menu cuts, and shorter working hours due to limited LPG supply. To conserve fuel, some restaurants are removing dishes that require longer cooking times or deep frying, such as kebabs and snacks.

At the same time, many wayside vendors and small eateries, which provide home delivery service and serve food, have begun switching to alternative fuels to keep their businesses running.

Some are using firewood, charcoal, or coal stoves, while others have turned to kerosene burners or electric induction stoves, where electricity supply allows. However, these alternatives are often less efficient, produce more smoke, or increase operating costs, making them difficult long-term solutions.

LocalCircles said it has conducted a survey to understand the impact of the LPG shortage on the food prices of street food vendors and restaurants.

57% of consumers who visited restaurants or ordered food confirmed price hikes

The survey first asked consumers, “In the last week, how have restaurant food prices (dine in or home delivery) changed in your area?” Out of 19, 328 consumers who responded to the question 43% indicated that there is “no change” in the restaurant prices they visited or go food from; 25% of respondents indicated that the prices have “increased by up to 10%”; 12% of respondents indicated that prices have “increased by 10-25%”; 12% of respondents indicated that the prices have “increased by 25-50%”; 8% of respondents indicated that the prices have “increased by over 50%”.

To sum up, 57% of consumers surveyed who visited restaurants or ordered food in the last week confirmed that they have increased prices significantly.

54% of consumers who visited street food vendors report the same hike

As social media reports have indicated that the increase in prices has been from a marginal hike to large jumps, the survey asked consumers, “In the last week, how have street vendor food prices changed in your area?” Out of 19,322 consumers who responded to the question, 33% indicated “no change”; 7% of respondents indicated “increased by up to 10%”; 47% of respondents indicated that it had “increased by n1-25%”; and 13% of respondents did not give a clear answer.

To sum up, 54% of consumers surveyed who visited street food vendors in the last week confirmed they have increased prices by up to 25%

The government will need to intervene here and make commercial LPG available to street food vendors and restaurants at regular prices if the food prices are to be contained. Alternatively, continuing high prices or many shutting temporarily till the situation normalises, the survey said.

Survey demographics

The LocalCircles survey said it received over 38,000 responses from household consumers located in 309 districts of India; 61 per cent of respondents were men, while 39 per cent of respondents were women; 44 per cent of respondents were from tier 1, 27 per cent from tier 2 and 29 per cent of respondents were from tier 3, 4 and 5 districts.