Domino's India operator flags LPG crunch amid US-Iran war
What's the story
Jubilant FoodWorks, the Indian franchisee of popular fast-food chains Domino's Pizza and Dunkin Donuts, is facing an LPG supply crunch. The issue has been triggered by the ongoing West Asia war. However, the company says that the operational impact is limited and being actively managed. It is taking several steps to conserve LPG while exploring alternate energy sources like electricity and piped natural gas (PNG).
Company measures
Jubilant FoodWorks engages oil marketing companies
In a recent BSE notification, Jubilant FoodWorks said, "The company is in constant engagement with oil marketing companies (OMCs) to remain apprised of the latest developments and plan operational responses accordingly." The firm added that it continues to closely monitor the situation. This comes as the restaurant industry has been severely affected by LPG shortages, with many chains temporarily shutting down operations.
Industry guidance
NRAI advises members to conserve LPG
On March 10, the National Restaurant Association of India (NRAI) had advised its five lakh members to consider shorter operating hours and suspend or reduce items that require long simmering and deep frying. The NRAI also suggested using lids while cooking to conserve cooking gas amid the ongoing LPG shortage due to the Gulf war.
Company assurance
Jubilant cites Middle East LPG constraints
In its release dated March 28, Jubilant FoodWorks said, "Due to the ongoing geopolitical situation in the Middle East, there are supply constraints on the distribution of commercial LPG across the country." The company added that it has resilient systems and processes in place to navigate short-term operational challenges and will continue to closely monitor the situation.