Restaurants in Delhi and Mumbai are grappling with a severe LPG supply crisis brought on by the ongoing conflict between the USA, Israel, and Iran. As a result, many establishments have cut back on their menu offerings and reservations, with owners in Mumbai reporting a substantial revenue drop of 20-30%. This downturn has raised questions about whether restaurant tenants can invoke 'Force Majeure Provision' as they did during the COVID-19 pandemic to negotiate rent reductions from landlords.

Additional reports highlight that these restaurant owners are facing a double whammy—having their revenues slashed while also contending with rising operational costs. The Metropolitan Gas Limited (MGL) recently communicated to restaurant owners that the rates for piped natural gas will remain higher than usual, starting from March 9th. Though the new pricing has not been disclosed, the ongoing disruptions in the global supply chain have led to recommendations for these restaurants to cut their gas consumption by 20%.

Given these challenging circumstances, the likelihood of obtaining rental relief hinges on the interpretation and application of force majeure provisions, which may offer some avenue for financial respite for restaurant owners enduring the impact of increased costs and dwindling revenues. As business owners navigate this crisis, the ramifications for the restaurant sector may have longer-lasting effects on local economies and employment.