LPG squeeze shows up in Zomato’s shrinking restaurant base

Zomato's active restaurant count fell for the first time on record in Q1FY27, dropping from 344,000 to 328,000.

The decline is attributed to an LPG (liquefied petroleum gas) squeeze, increasing costs for restaurant partners.

Rising input costs may force small restaurants to delist from the platform, reducing Zomato's supply base.

This is the first recorded quarter-over-quarter drop in Zomato's restaurant count since listing.