Burners off? How restaurants are adapting to limited LPG supply
The food industry faces a new challenge, as the Department of Energy announced that the current supply of liquified petroleum will last for less than a month.
LPG prices are also set to spike by P30 per kilo due to rising shipping and contract costs amid the global oil crisis. The price of an 11-kilo tank is expected to reach P1,500 next month.
LPG Marketers Association founder Arnel Ty told reporters, including the Philippine STAR, the adjustments will be implemented on a staggered basis, with P20 per kilo on March 28 and an additional P10 per kilo on April 1.
Such a situation has pushed restaurants, bakeries, and other businesses to find smart and creative ways to cope.
But how are they really dealing with the limited LPG supply?
Restaurants to adapt
Ana Lorenzana de Ocampo, president and CEO of the Wildflour Group, told PhilSTAR L!fe that it is closely monitoring the LPG usage of their 40 restaurants.
"We are turning off non-essential equipment in lean hours and streamlining the equipment we use on a daily basis," she shared.
"We are also considering streamlining menus based on dishes with extended cooking and preparation times to reduce LPG consumption."
She further noted: "If the government doesn’t secure supply of LPG, we as restaurateurs will be paralyzed."
For Avin Ong, founder and CEO of the Fredley Group of Companies, franchisee of nine brands (Macao Imperial Tea, Nabe Japanese Izakaya and Hot Pot, Mitasu Yakiniku, New York Fries & Dips, and Kenangan Coffee), the reduced supply means tightening operations.
"We have implemented stricter energy management measures across our stores. This includes tighter controls on energy usage, adjusted operating hours where necessary, and reinforcing cost discipline at all levels of the organization," he said.
Businesses are also experiencing the effects of the oil price hikes, de Ocampo said.
"We are noticing an increase in produce cost and beginning to experience availability issues. This is due to the spike in diesel prices and closure of key shipping lanes," she added.
De Ocampo also noticed a decrease in foot traffic, as more people are working from home. The government implemented a compressed four-day work week for its offices, and Malacañang has said that a work-from-home setup for the private sector would be a "big help" to conserve energy.
Because of this, her restaurants are relying on delivery strategies developed during the pandemic to continue to reach their customers.
Ong, meanwhile, shared that his company is building buffer inventory.
"We want to make sure our stores remain fully operational even if supply chains tighten," he added.
Despite economic challenges, Ong said he doesn't want to burden customers with higher prices in their products.
"At this point, we are absorbing the cost increases. We do not have plans to pass these on to our customers or increase our markup. We see this as our way of contributing and supporting the broader economy during a challenging period," he said.
"Overall, our focus is simple: Stay ahead of potential disruptions, run a disciplined operation, and continue serving our customers without compromise."
On March 23, President Ferdinand Marcos Jr. declared a national state of energy emergency in response to the Middle East conflict and what he called an "imminent danger" posed to the country's energy supply.
In an online press conference on Tuesday, Garin said as of March 20, gasoline supply can last for up to 53 days, diesel 45 days, kerosene 97 days, jet fuel 38 days, fuel oil 61 days, and LPG 23 days.
The Philippines received the first shipment of Russian crude oil on Wednesday. Marcos said that the country's current supply will last until June 30.