India's restaurants and food delivery platforms are preparing to raise menu prices by 5 to 10 percent starting next week, following a sharp increase in fuel prices. The hike adds to mounting pressures from liquefied petroleum gas shortages, higher cooking gas costs and staffing challenges, leaving many operators with little room to absorb further expenses.

The surge in global crude oil prices, driven by escalating tensions in the Middle East and disruptions along key oil supply routes, has pushed up petrol and diesel rates across India. Industry leaders say the impact goes beyond fuel, affecting transportation, packaging, raw materials and overall supply chains. Many restaurant chains, which typically revise prices once a year, are now being forced to implement increases months earlier than planned.

Food delivery services are also expected to adjust pricing structures, potentially raising delivery fees, reducing discounts and altering minimum order values. At the same time, a renewed work from home push may boost delivery demand but hurt dine in traffic, particularly office lunches and group outings.

An internal survey by the National Restaurant Association of India found that a significant number of restaurants temporarily shut last month, while many others reduced menus or operating hours due to soaring costs. With raw material prices such as milk and fresh produce also climbing, the combined effect of higher fuel and logistics expenses is likely to deepen inflationary pressure on household food budgets.