The stock market today saw pressure building on restaurant and food delivery stocks. Shares of Eternal, Swiggy, and Jubilant Foodworks slipped on March 12 after crude oil prices surged past $100 per barrel, sparking concerns over a possible shortage of commercial LPG.
The sudden spike in global oil prices has triggered anxiety across the hospitality and food services sector. Restaurants, food vendors, and delivery platforms depend heavily on LPG for daily operations. When supply concerns rise, investors quickly factor the risk into stock prices.
And that’s exactly what played out in the market today.
Market Performance: Restaurant Stocks Slide on Fuel Supply Concerns
Several restaurant-linked stocks faced selling pressure as crude oil prices surged sharply.
Here’s how key stocks performed during the session:
- Eternal share price declined over 3%, becoming the biggest loser on the Nifty 50 index.
- Swiggy share price traded around 2% lower at 10:05 AM on March 12.
- Jubilant Foodworks share price dropped 3.5%.
- Sapphire Foods shares slipped 1.5%.
- United Foodbrands, the parent company of Barbeque Nation, fell 7%, trading at ₹207 per share.
The broader weakness came as investors reacted to the sudden jump in global crude prices and the potential ripple effect on food businesses.
Main News: Crude Oil Crosses $100 Amid Global Supply Disruptions
The biggest trigger behind the decline in restaurant-related stocks was the sharp rise in global oil prices.
Crude oil prices jumped nearly 9%, pushing Brent crude futures to $100.22 per barrel. The surge came after reports of ships being hit in Gulf waters and the closure of certain oil terminals.
At the same time:
- U.S. crude futures climbed to $95.41 per barrel.
- Both major oil benchmarks recorded around 9% gains during the session.
This sudden jump followed an overnight increase of more than 4%, extending the rally in energy markets.
Higher oil prices typically push inflation upward and increase operating costs for businesses worldwide. For restaurants and food delivery companies, the risk becomes more immediate because of their dependence on LPG cylinders for cooking.
Global Oil Reserves Release Fails to Calm Market
There was also an attempt to cool down the rising energy prices.
The International Energy Agency (IEA) announced a plan to release 400 million barrels of oil from its reserves, the largest release in its history.
As part of that move:
- The United States confirmed it would release 172 million barrels of oil starting next week.
Despite this massive reserve release, markets remained uneasy. Oil prices continued to hover above the $100 mark, keeping pressure on sectors linked to fuel consumption.
LPG Shortage Concerns Begin to Disrupt Restaurants
Beyond the stock market, the real impact is already being felt on the ground.
Across India, restaurants, street food vendors, and catering businesses are scrambling for alternatives as the supply of commercial LPG cylinders becomes irregular.
Many kitchens depend entirely on these cylinders for cooking. With supply disruptions emerging due to the conflict in West Asia, businesses are now exploring other options to keep operations running.
Some of the alternatives being used include:
- Induction cooktops
- Microwaves
- Firewood-based cooking
- Solar-powered solutions
These adjustments show how quickly the hospitality sector is reacting to the supply situation.
Restaurants in Delhi Face Immediate Supply Pressure
The situation appears particularly tense in the national capital.
In Delhi, many restaurant kitchens are experiencing irregular LPG supply, leaving several establishments with just one to two days of cylinder stock.
This has raised concerns among business owners about:
- Possible temporary shutdowns
- Disruptions to daily operations
- Challenges in maintaining staff wages
Restaurant operators are currently managing the situation through adjustments and temporary measures to keep their kitchens running.
Government Prioritises Household LPG Supply
One key factor affecting commercial LPG availability is the government’s decision to prioritise domestic LPG supply for households.
As global fuel supply chains face disruptions, authorities are focusing on ensuring cooking gas availability for residential users first.
This has indirectly placed pressure on businesses that rely on commercial LPG cylinders, including:
- Small eateries
- Street food stalls
- Catering companies
- Mid-range restaurants
- Large dining chains
For these businesses, any prolonged supply disruption could impact operations.
Company Details: Eternal, Swiggy, Jubilant Foodworks
The stocks under pressure today represent some of the most prominent companies in India’s food services ecosystem.
Eternal
Eternal operates in the food delivery segment and is part of the Nifty 50 index. Its stock declined over 3% during the session, making it the biggest loser on the benchmark index.
Swiggy
Swiggy is one of India’s leading food delivery platforms. The Swiggy share price slipped around 2% during morning trade on March 12.
Jubilant Foodworks
Jubilant Foodworks operates major quick-service restaurant brands in India. The Jubilant Foodworks share price dropped 3.5% during the session.
Sapphire Foods
Sapphire Foods, another restaurant operator, also witnessed mild selling pressure with its stock falling 1.5%.
United Foodbrands
United Foodbrands, the parent company of Barbeque Nation, saw the sharpest decline among restaurant stocks, with shares tumbling 7% to ₹207.
Why Restaurant Stocks React Quickly to Fuel Costs?
Fuel prices may seem distant from restaurant businesses at first glance. But in reality, they play a critical role.
Commercial LPG cylinders are the backbone of restaurant kitchens across India. When supply becomes uncertain or prices spike, operational costs rise quickly.
This can affect:
- Daily kitchen operations
- Food preparation capacity
- Delivery timelines
- Overall business continuity
Because of this direct dependency, restaurant and food delivery stocks tend to react sharply to changes in energy markets.
Summary of the Article
The stock market today saw restaurant and food delivery stocks under pressure as global crude oil prices surged past $100 per barrel.
Key highlights from the session:
- Eternal share price fell over 3% on the Nifty 50.
- Swiggy shares slipped around 2%.
- Jubilant Foodworks stock declined 3.5%.
- Sapphire Foods shares dropped 1.5%.
- United Foodbrands stock plunged 7% to ₹207.
The sell-off followed a 9% surge in oil prices, with Brent crude at $100.22 per barrel and U.S. crude at $95.41 per barrel.
At the same time, restaurants across India are facing commercial LPG supply disruptions, forcing many to explore alternative cooking methods.
As the global energy situation evolves, the impact on restaurant businesses and related stocks continues to remain closely watched in the stock market today.
Source: Moneycontrol
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